Gen Digital Inc. stock research
FY2024 Q3
Gen Digital (GEN) Gross Margin — Quarter Ended Dec 29, 2023
Revenue and gross profit increased slightly compared to both the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened marginally from the prior quarter and the year-ago quarter, reflecting a slightly higher proportion of cost relative to revenue.
Gross margin takeaway
Quarter ended Dec 29, 2023 · FY2024 Q3
Revenue and gross profit increased slightly compared to both the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened marginally from the prior quarter and the year-ago quarter, reflecting a slightly higher proportion of cost relative to revenue.
- The slight decline in gross margin was driven by cost of revenue growing at a pace slightly faster than revenue, as both metrics increased modestly.
- Compared to the immediately preceding quarter, gross margin weakened slightly despite slightly higher revenue, as cost of revenue increased more. Versus the same quarter one year earlier, gross margin was also slightly lower, with revenue growth outpaced by cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.8%
Gross profit
$766.0M
Revenue
$948.0M
Cost of revenue
$182.0M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.2 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% |
| Dec 29, 2023 | $948.0M | $766.0M | $182.0M | 80.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2023
-0.2 pts
Year-over-year change
Dec 30, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The slight decline in gross margin was driven by cost of revenue growing at a pace slightly faster than revenue, as both metrics increased modestly.
Compared to the immediately preceding quarter, gross margin weakened slightly despite slightly higher revenue, as cost of revenue increased more. Versus the same quarter one year earlier, gross margin was also slightly lower, with revenue growth outpaced by cost growth.
Monitor whether the pace of cost of revenue growth continues to outpace revenue growth in future quarters.