Gartner, Inc. stock research
FY2023 Q1
Gartner (IT) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased year-over-year, but cost of revenue grew at a faster pace, causing gross margin to decline. Sequentially, revenue declined while cost of revenue fell more, leading to a gross margin improvement.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased year-over-year, but cost of revenue grew at a faster pace, causing gross margin to decline. Sequentially, revenue declined while cost of revenue fell more, leading to a gross margin improvement.
- The sequential improvement in gross margin was driven by a larger decline in cost of revenue compared to the decline in revenue.
- Compared to the prior quarter, gross margin increased; compared to the same quarter last year, gross margin decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.1%
Gross profit
$973.7M
Revenue
$1.4B
Cost of revenue
$435.1M
Quarter-over-quarter change
n/a
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.4B | $973.7M | $435.1M | 69.1% |
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
Mar 31, 2022
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a larger decline in cost of revenue compared to the decline in revenue.
Compared to the prior quarter, gross margin increased; compared to the same quarter last year, gross margin decreased.
Monitor the trend of cost of revenue relative to revenue, as it has been the primary factor in margin changes.