Gen Digital Inc. stock research
FY2024 Q2
Gen Digital (GEN) Gross Margin — Quarter Ended Sep 29, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose slightly, resulting in a stable gross margin. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue increased more sharply, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose slightly, resulting in a stable gross margin. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue increased more sharply, leading to a lower gross margin.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue rose only modestly quarter over quarter, supporting margin stability.
- Compared to the immediately preceding quarter, gross margin was stable. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.0%
Gross profit
$765.0M
Revenue
$945.0M
Cost of revenue
$180.0M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-3.1 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% |
| Sep 29, 2023 | $945.0M | $765.0M | $180.0M | 81.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.1 pts
Year-over-year change
Sep 30, 2022
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue rose only modestly quarter over quarter, supporting margin stability.
Compared to the immediately preceding quarter, gross margin was stable. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue grew faster than revenue.
Monitor the trend in cost of revenue relative to revenue, as its faster growth year over year has pressured gross margin.