GP

Global Payments Inc. stock research

Mar 31, 2023

FY2023 Q1

Global Payments (GPN) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit were stable compared to the prior quarter, while cost of revenue increased slightly, leading to a marginal weakening in gross margin. Compared to the same quarter last year, revenue and gross profit both grew, and gross margin improved as cost of revenue decreased.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue and gross profit were stable compared to the prior quarter, while cost of revenue increased slightly, leading to a marginal weakening in gross margin. Compared to the same quarter last year, revenue and gross profit both grew, and gross margin improved as cost of revenue decreased.

  • The gross margin was higher year-over-year, supported by revenue growth and a lower cost of revenue. Sequentially, the margin was marginally lower due to a slight increase in cost of revenue.
  • Sequentially, gross margin was slightly lower, while revenue and gross profit remained largely unchanged. Year-over-year, gross margin improved, with revenue and gross profit both higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

58.7%

Gross profit

$1.3B

Revenue

$2.3B

Cost of revenue

$947.8M

Quarter-over-quarter change

n/a

Year-over-year change

+3.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.3B$1.3B$947.8M58.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

+3.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin was higher year-over-year, supported by revenue growth and a lower cost of revenue. Sequentially, the margin was marginally lower due to a slight increase in cost of revenue.

Sequentially, gross margin was slightly lower, while revenue and gross profit remained largely unchanged. Year-over-year, gross margin improved, with revenue and gross profit both higher.

Monitor the trend in cost of revenue, as it increased sequentially and influenced the margin.

GPN Gross Margin — Quarter Ended Mar 31, 2023