Jack Henry & Associates, Inc. stock research
FY2024 Q4
Jack Henry & Associates (JKHY) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased both sequentially and year over year. Gross profit rose sequentially but fell year over year, as cost of revenue decreased slightly from the prior quarter but increased from the same quarter last year, resulting in gross margin improvement sequentially but weakening compared to the prior year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q4
Revenue increased both sequentially and year over year. Gross profit rose sequentially but fell year over year, as cost of revenue decreased slightly from the prior quarter but increased from the same quarter last year, resulting in gross margin improvement sequentially but weakening compared to the prior year.
- The primary observable driver is the relationship between cost of revenue and revenue. Sequentially, cost of revenue declined while revenue grew, boosting margin; year over year, cost of revenue grew faster than revenue, compressing margin.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.5%
Gross profit
$232.6M
Revenue
$559.9M
Cost of revenue
$327.3M
Quarter-over-quarter change
+2.5 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $571.4M | $248.4M | $323.0M | 43.5% |
| Dec 31, 2023 | $545.7M | $224.7M | $321.0M | 41.2% |
| Mar 31, 2024 | $538.6M | $210.3M | $328.2M | 39.1% |
| Jun 30, 2024 | $559.9M | $232.6M | $327.3M | 41.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+2.5 pts
Year-over-year change
Jun 30, 2023
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver is the relationship between cost of revenue and revenue. Sequentially, cost of revenue declined while revenue grew, boosting margin; year over year, cost of revenue grew faster than revenue, compressing margin.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue growth in upcoming quarters.