Global Payments Inc. stock research
FY2023 Q4
Global Payments (GPN) Gross Margin — Quarter Ended Dec 31, 2023
Revenue declined sharply from the prior quarter and the year-ago quarter, while gross profit also decreased but remained above revenue because cost of revenue was negative. Gross margin increased substantially compared to both periods, reflecting the unusual relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue declined sharply from the prior quarter and the year-ago quarter, while gross profit also decreased but remained above revenue because cost of revenue was negative. Gross margin increased substantially compared to both periods, reflecting the unusual relationship between revenue and cost of revenue.
- The most observable driver of gross margin is the negative cost of revenue, which causes gross profit to exceed revenue and inflates the margin ratio.
- Compared to the prior quarter, revenue is lower and gross profit is lower, but gross margin is higher. Compared to the same quarter last year, revenue is lower, gross profit is lower, and gross margin is higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
563.0%
Gross profit
$896.1M
Revenue
$159.2M
Cost of revenue
-$736.9M
Quarter-over-quarter change
+500.0 pts
Year-over-year change
+504.2 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% |
| Dec 31, 2023 | $159.2M | $896.1M | -$736.9M | 563.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+500.0 pts
Year-over-year change
Dec 31, 2022
+504.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin is the negative cost of revenue, which causes gross profit to exceed revenue and inflates the margin ratio.
Compared to the prior quarter, revenue is lower and gross profit is lower, but gross margin is higher. Compared to the same quarter last year, revenue is lower, gross profit is lower, and gross margin is higher.
Monitor the sign and magnitude of cost of revenue in subsequent filings, as its negative value is the primary factor behind the current quarter's margin behavior.