Jack Henry & Associates, Inc. stock research
FY2023 Q4
Jack Henry & Associates (JKHY) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster rate than cost of revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster rate than cost of revenue, resulting in an improved gross margin.
- The primary factor in the margin improvement was the increase in revenue while cost of revenue rose only modestly.
- Compared to the immediately preceding quarter, gross margin improved as revenue growth significantly exceeded the small increase in cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue growth outpacing the rise in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.2%
Gross profit
$225.8M
Revenue
$534.6M
Cost of revenue
$308.9M
Quarter-over-quarter change
+2.7 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $508.6M | $201.2M | $307.3M | 39.6% |
| Jun 30, 2023 | $534.6M | $225.8M | $308.9M | 42.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.7 pts
Year-over-year change
Jun 30, 2022
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary factor in the margin improvement was the increase in revenue while cost of revenue rose only modestly.
Compared to the immediately preceding quarter, gross margin improved as revenue growth significantly exceeded the small increase in cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue growth outpacing the rise in cost of revenue.
Monitor the effect of tax law changes on operating cash flow, as the filing notes a decrease partly due to IRC Section 174 treatment of research and development expenses.