Gen Digital Inc. stock research
FY2024 Q1
Gen Digital (GEN) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was lower than the prior quarter but higher than a year ago, leading to a gross margin that improved sequentially but weakened year over year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was lower than the prior quarter but higher than a year ago, leading to a gross margin that improved sequentially but weakened year over year.
- The sequential gross margin improvement was supported by a lower cost of revenue relative to revenue, while the year-over-year decline reflects a higher cost base compared to a year earlier.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.0%
Gross profit
$764.0M
Revenue
$943.0M
Cost of revenue
$179.0M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
-4.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $926.0M | $736.0M | $190.0M | 79.5% |
| Jun 30, 2023 | $943.0M | $764.0M | $179.0M | 81.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.5 pts
Year-over-year change
Jul 1, 2022
-4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential gross margin improvement was supported by a lower cost of revenue relative to revenue, while the year-over-year decline reflects a higher cost base compared to a year earlier.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the trajectory of cost of revenue, which increased year over year despite a sequential decline.