Alphabet Inc. stock research
FY2023 Q4
Alphabet (GOOGL) Gross Margin — Quarter Ended Dec 31, 2023
Revenue, gross profit, and cost of revenue all increased from both the prior quarter and the same quarter a year ago. Gross margin was stable sequentially but improved year over year, as gross profit grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue, gross profit, and cost of revenue all increased from both the prior quarter and the same quarter a year ago. Gross margin was stable sequentially but improved year over year, as gross profit grew faster than cost of revenue.
- Gross margin improvement from the year-ago quarter was driven by a relatively lower increase in cost of revenue compared to the rise in revenue and gross profit.
- Compared to the prior quarter, revenue and gross profit grew while gross margin declined slightly. Compared to the same quarter a year ago, all metrics increased and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.5%
Gross profit
$48.7B
Revenue
$86.3B
Cost of revenue
$37.6B
Quarter-over-quarter change
-0.2 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% |
| Dec 31, 2023 | $86.3B | $48.7B | $37.6B | 56.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.2 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.
Gross margin improvement from the year-ago quarter was driven by a relatively lower increase in cost of revenue compared to the rise in revenue and gross profit.
Compared to the prior quarter, revenue and gross profit grew while gross margin declined slightly. Compared to the same quarter a year ago, all metrics increased and gross margin strengthened.
Monitor the proportion of cost of revenue relative to revenue, as a small sequential increase in the ratio eroded gross margin slightly.