Intuit Inc. stock research
FY2024 Q4
Intuit (INTU) Gross Margin — Quarter Ended Jul 31, 2024
Intuit's gross margin improved year-over-year but weakened sequentially, with revenue declining more than cost of revenue from the prior quarter. The company continues to operate as a global financial technology platform serving consumers and small businesses, supported by AI and data capabilities.
Gross margin takeaway
Quarter ended Jul 31, 2024 · FY2024 Q4
Intuit's gross margin improved year-over-year but weakened sequentially, with revenue declining more than cost of revenue from the prior quarter. The company continues to operate as a global financial technology platform serving consumers and small businesses, supported by AI and data capabilities.
- The sequential weakening of gross margin is the most observable driver, as revenue fell proportionally more than cost of revenue. A concrete item to monitor is the trend of cost of revenue relative to revenue in future periods.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was higher. Revenue and gross profit were lower sequentially but higher year-over-year, while cost of revenue also decreased sequentially and increased year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.4%
Gross profit
$2.4B
Revenue
$3.2B
Cost of revenue
$783.0M
Quarter-over-quarter change
-8.8 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| Oct 31, 2023 | $3.0B | $2.2B | $760.0M | 74.5% |
| Jan 31, 2024 | $3.4B | $2.5B | $855.0M | 74.7% |
| Apr 30, 2024 | $6.7B | $5.7B | $1.1B | 84.2% |
| Jul 31, 2024 | $3.2B | $2.4B | $783.0M | 75.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2024
-8.8 pts
Year-over-year change
Jul 31, 2023
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential weakening of gross margin is the most observable driver, as revenue fell proportionally more than cost of revenue. A concrete item to monitor is the trend of cost of revenue relative to revenue in future periods.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was higher. Revenue and gross profit were lower sequentially but higher year-over-year, while cost of revenue also decreased sequentially and increased year-over-year.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess margin stability.