Global Payments Inc. stock research
FY2024 Q3
Global Payments (GPN) Gross Margin — Quarter Ended Sep 30, 2024
This quarter's gross margin expanded compared to both the prior quarter and the same quarter last year, driven by a lower cost of revenue relative to revenue. Revenue and gross profit were stable sequentially but lower year over year, while cost of revenue decreased significantly year over year.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
This quarter's gross margin expanded compared to both the prior quarter and the same quarter last year, driven by a lower cost of revenue relative to revenue. Revenue and gross profit were stable sequentially but lower year over year, while cost of revenue decreased significantly year over year.
- The primary driver of the gross margin improvement was the reduction in cost of revenue as a proportion of revenue. The filing context indicates that many operating costs do not vary directly with transaction volume, which supports margin leverage when revenue changes.
- Sequentially, revenue and gross profit were essentially unchanged, and gross margin edged higher. Compared to the same quarter a year ago, revenue and gross profit were lower, but gross margin increased substantially as cost of revenue declined more than proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.7%
Gross profit
$1.5B
Revenue
$2.0B
Cost of revenue
$504.6M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+11.7 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 | $159.2M | $896.1M | -$736.9M | 563.0% |
| Mar 31, 2024 | $2.4B | $1.5B | $922.4M | 61.9% |
| Jun 30, 2024 | $2.0B | $1.5B | $504.5M | 74.4% |
| Sep 30, 2024 | $2.0B | $1.5B | $504.6M | 74.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.3 pts
Year-over-year change
Sep 30, 2023
+11.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was the reduction in cost of revenue as a proportion of revenue. The filing context indicates that many operating costs do not vary directly with transaction volume, which supports margin leverage when revenue changes.
Sequentially, revenue and gross profit were essentially unchanged, and gross margin edged higher. Compared to the same quarter a year ago, revenue and gross profit were lower, but gross margin increased substantially as cost of revenue declined more than proportionally.
Monitor transaction volume, which the company identifies as a key factor influencing revenue and the associated cost structure.