Intuit (INTU) Gross Margin — Quarter Ended Jan 31, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but declined compared to the same quarter last year.

Gross margin takeaway

Quarter ended Jan 31, 2023 · FY2023 Q2

Sequentially, gross margin improved as revenue rose more than cost of revenue. Year-over-year, gross margin weakened as cost of revenue grew at a faster pace than revenue.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.

Gross margin snapshot

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

Gross margin

74.6%

Gross profit

$2.3B

Revenue

$3.0B

Cost of revenue

$773.0M

Quarter-over-quarter change

n/a

Year-over-year change

-4.3 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
Jan 31, 2023	$3.0B	$2.3B	$773.0M	74.6%

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

Jan 31, 2022

-4.3 pts

What the margin says

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

Sequentially, gross margin improved as revenue rose more than cost of revenue. Year-over-year, gross margin weakened as cost of revenue grew at a faster pace than revenue.

Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.

Monitor the trend of cost of revenue relative to revenue in upcoming quarters.