Gen Digital Inc. stock research
FY2024 Q4
Gen Digital (GEN) Gross Margin — Quarter Ended Mar 29, 2024
Revenue and gross profit both increased, while cost of revenue was slightly higher, leading to a gross margin that improved from the same quarter a year ago but weakened from the preceding quarter.
Gross margin takeaway
Quarter ended Mar 29, 2024 · FY2024 Q4
Revenue and gross profit both increased, while cost of revenue was slightly higher, leading to a gross margin that improved from the same quarter a year ago but weakened from the preceding quarter.
- Revenue grew faster than cost of revenue year over year, supporting a higher gross margin. Sequentially, cost of revenue increased at a pace similar to revenue, resulting in a modest margin decline.
- Compared to the preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter a year earlier, gross margin improved as revenue and gross profit increased while cost held steady.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.3%
Gross profit
$774.0M
Revenue
$964.0M
Cost of revenue
$190.0M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Mar 29, 2024 | $964.0M | $774.0M | $190.0M | 80.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 29, 2023
-0.5 pts
Year-over-year change
Mar 31, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue grew faster than cost of revenue year over year, supporting a higher gross margin. Sequentially, cost of revenue increased at a pace similar to revenue, resulting in a modest margin decline.
Compared to the preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter a year earlier, gross margin improved as revenue and gross profit increased while cost held steady.
Monitor the trend in cost of revenue, as it rose sequentially and could pressure margin if revenue growth slows.