JK

Jack Henry & Associates, Inc. stock research

Sep 30, 2023

FY2024 Q1

Jack Henry & Associates (JKHY) Gross Margin — Quarter Ended Sep 30, 2023

Revenue and cost of revenue both increased, resulting in higher gross profit. Gross margin improved sequentially but was slightly lower than the same quarter last year.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2024 Q1

Revenue and cost of revenue both increased, resulting in higher gross profit. Gross margin improved sequentially but was slightly lower than the same quarter last year.

  • The sequential improvement in gross margin is associated with gross profit growing faster than revenue relative to the prior quarter.
  • Compared to the prior quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened slightly.

Gross margin snapshot

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

Gross margin

43.5%

Gross profit

$248.4M

Revenue

$571.4M

Cost of revenue

$323.0M

Quarter-over-quarter change

+1.2 pts

Year-over-year change

-0.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$508.6M$201.2M$307.3M39.6%
Jun 30, 2023$534.6M$225.8M$308.9M42.2%
Sep 30, 2023$571.4M$248.4M$323.0M43.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+1.2 pts

Year-over-year change

Sep 30, 2022

-0.2 pts

What the margin says

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

The sequential improvement in gross margin is associated with gross profit growing faster than revenue relative to the prior quarter.

Compared to the prior quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened slightly.

Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin.

JKHY Gross Margin — Quarter Ended Sep 30, 2023