Global Payments Inc. stock research
FY2023 Q3
Global Payments (GPN) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue decreased, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit both increased, cost of revenue was lower, and gross margin improved.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue decreased, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit both increased, cost of revenue was lower, and gross margin improved.
- The improvement in gross margin was driven by a combination of stable revenue and lower cost of revenue relative to the prior quarter. The same dynamic, with revenue growth outpacing cost of revenue changes, supported the year-over-year margin expansion.
- Gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier. Revenue was stable sequentially but higher year-over-year, while cost of revenue decreased on both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.0%
Gross profit
$1.6B
Revenue
$2.5B
Cost of revenue
$915.5M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+3.8 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $2.3B | $1.3B | $947.8M | 58.7% |
| Jun 30, 2023 | $2.5B | $1.5B | $942.0M | 61.6% |
| Sep 30, 2023 | $2.5B | $1.6B | $915.5M | 63.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.4 pts
Year-over-year change
Sep 30, 2022
+3.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by a combination of stable revenue and lower cost of revenue relative to the prior quarter. The same dynamic, with revenue growth outpacing cost of revenue changes, supported the year-over-year margin expansion.
Gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier. Revenue was stable sequentially but higher year-over-year, while cost of revenue decreased on both comparisons.
Monitor the trend in cost of service, as its decline contributed to margin improvement in the current quarter.