Alphabet Inc. stock research
FY2024 Q3
Alphabet (GOOGL) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved as gross profit grew at a faster rate than cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved as gross profit grew at a faster rate than cost of revenue.
- The primary driver of margin improvement is the relationship between revenue growth and cost of revenue growth, with gross profit increasing more than cost of revenue.
- Compared to the previous quarter, gross margin was higher. Compared to the same quarter one year ago, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.7%
Gross profit
$51.8B
Revenue
$88.3B
Cost of revenue
$36.5B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+2.0 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $86.3B | $48.7B | $37.6B | 56.5% |
| Mar 31, 2024 | $80.5B | $46.8B | $33.7B | 58.1% |
| Jun 30, 2024 | $84.7B | $49.2B | $35.5B | 58.1% |
| Sep 30, 2024 | $88.3B | $51.8B | $36.5B | 58.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.6 pts
Year-over-year change
Sep 30, 2023
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of margin improvement is the relationship between revenue growth and cost of revenue growth, with gross profit increasing more than cost of revenue.
Compared to the previous quarter, gross margin was higher. Compared to the same quarter one year ago, gross margin was also higher.
The company's filing notes that traffic acquisition costs and their rate may fluctuate, which could affect margins.