Global Payments Inc. stock research
FY2024 Q1
Global Payments (GPN) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue decreased, resulting in an improved gross margin. Compared to the immediately preceding quarter, the current quarter's revenue, gross profit, and gross margin are all lower, and cost of revenue is higher.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue decreased, resulting in an improved gross margin. Compared to the immediately preceding quarter, the current quarter's revenue, gross profit, and gross margin are all lower, and cost of revenue is higher.
- The strongest observable margin driver is the relationship between revenue growth and a decline in cost of revenue compared to the same quarter last year, which supported gross margin improvement.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin are all lower, while cost of revenue is higher. Compared to the same quarter one year earlier, revenue and gross profit are higher, cost of revenue is lower, and gross margin has improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.9%
Gross profit
$1.5B
Revenue
$2.4B
Cost of revenue
$922.4M
Quarter-over-quarter change
-501.1 pts
Year-over-year change
+3.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $2.4B | $1.5B | $922.4M | 61.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-501.1 pts
Year-over-year change
Mar 31, 2023
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and a decline in cost of revenue compared to the same quarter last year, which supported gross margin improvement.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin are all lower, while cost of revenue is higher. Compared to the same quarter one year earlier, revenue and gross profit are higher, cost of revenue is lower, and gross margin has improved.
Monitor the trend in cost of revenue relative to revenue, as its decline year-over-year contributed to margin improvement but increased sequentially.