Intuit Inc. stock research
FY2023 Q4
Intuit (INTU) Gross Margin — Quarter Ended Jul 31, 2023
Gross profit is revenue minus cost of revenue, and gross margin is the ratio of gross profit to revenue. Revenue, gross profit, and cost of revenue were all lower than the immediately preceding quarter and higher than the same quarter one year earlier, while gross margin weakened compared with both periods.
Gross margin takeaway
Quarter ended Jul 31, 2023 · FY2023 Q4
Gross profit is revenue minus cost of revenue, and gross margin is the ratio of gross profit to revenue. Revenue, gross profit, and cost of revenue were all lower than the immediately preceding quarter and higher than the same quarter one year earlier, while gross margin weakened compared with both periods.
- The strongest observable margin driver is the increased share of cost of revenue relative to revenue. Cost of revenue declined less proportionally than revenue when comparing with the prior quarter, and rose more proportionally than revenue when comparing with the year-ago quarter.
- Sequentially, revenue, gross profit, and cost of revenue were lower, and gross margin weakened. Year-over-year, revenue, gross profit, and cost of revenue were higher, but gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.7%
Gross profit
$2.0B
Revenue
$2.7B
Cost of revenue
$713.0M
Quarter-over-quarter change
-10.0 pts
Year-over-year change
-1.4 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% |
| Apr 30, 2023 | $6.0B | $5.0B | $981.0M | 83.7% |
| Jul 31, 2023 | $2.7B | $2.0B | $713.0M | 73.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
-10.0 pts
Year-over-year change
Jul 31, 2022
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increased share of cost of revenue relative to revenue. Cost of revenue declined less proportionally than revenue when comparing with the prior quarter, and rose more proportionally than revenue when comparing with the year-ago quarter.
Sequentially, revenue, gross profit, and cost of revenue were lower, and gross margin weakened. Year-over-year, revenue, gross profit, and cost of revenue were higher, but gross margin also weakened.
Monitor the trend in cost of revenue as a percentage of revenue in upcoming quarters to assess whether gross margin stabilizes or continues to weaken.