KLA Corporation stock research
FY2023 Q4
KLA (KLAC) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue both moved slightly, resulting in a modest improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue both moved slightly, resulting in a modest improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin weakened.
- The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue decreased slightly from the prior quarter while revenue held steady, which supported the gross margin improvement.
- Gross margin improved slightly from the prior quarter, as cost of revenue declined relative to stable revenue. Compared to the same quarter last year, gross margin weakened, driven by a larger decline in gross profit relative to the decline in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.1%
Gross profit
$1.4B
Revenue
$2.4B
Cost of revenue
$962.9M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-1.5 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 | $2.4B | $1.4B | $1.0B | 58.7% |
| Jun 30, 2023 | $2.4B | $1.4B | $962.9M | 59.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.4 pts
Year-over-year change
Jun 30, 2022
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue decreased slightly from the prior quarter while revenue held steady, which supported the gross margin improvement.
Gross margin improved slightly from the prior quarter, as cost of revenue declined relative to stable revenue. Compared to the same quarter last year, gross margin weakened, driven by a larger decline in gross profit relative to the decline in revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its movement directly influenced gross margin in both comparisons.