Alphabet Inc. stock research
FY2023 Q3
Alphabet (GOOGL) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Gross profit and cost of revenue also increased, while gross margin weakened compared with the prior quarter but improved compared with the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Gross profit and cost of revenue also increased, while gross margin weakened compared with the prior quarter but improved compared with the same quarter last year.
- The relationship between revenue and cost of revenue showed that cost grew proportionately faster than revenue when compared with the prior quarter, leading to a slightly lower gross margin. Year over year, revenue grew more quickly than cost, supporting margin expansion.
- Compared with the immediately preceding quarter, gross margin was lower; compared with the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.7%
Gross profit
$43.5B
Revenue
$76.7B
Cost of revenue
$33.2B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
n/a
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 | $69.8B | $39.2B | $30.6B | 56.1% |
| Jun 30, 2023 | $74.6B | $42.7B | $31.9B | 57.2% |
| Sep 30, 2023 | $76.7B | $43.5B | $33.2B | 56.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.5 pts
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue showed that cost grew proportionately faster than revenue when compared with the prior quarter, leading to a slightly lower gross margin. Year over year, revenue grew more quickly than cost, supporting margin expansion.
Compared with the immediately preceding quarter, gross margin was lower; compared with the same quarter one year earlier, gross margin was higher.
Monitor the movement in cost of revenue relative to revenue in upcoming quarters for further margin pressure or expansion.