KLA Corporation stock research
FY2024 Q1
KLA (KLAC) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q1
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
- The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue alongside stable revenue, which allowed gross profit to increase. The year-over-year decline in gross margin reflects a proportionally larger decrease in revenue relative to the reduction in cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue held steady. Compared to the same quarter one year earlier, gross margin weakened as revenue declined more sharply than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.5%
Gross profit
$1.5B
Revenue
$2.4B
Cost of revenue
$946.9M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
-1.3 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% |
| Sep 30, 2023 | $2.4B | $1.5B | $946.9M | 60.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.4 pts
Year-over-year change
Sep 30, 2022
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue alongside stable revenue, which allowed gross profit to increase. The year-over-year decline in gross margin reflects a proportionally larger decrease in revenue relative to the reduction in cost of revenue.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue held steady. Compared to the same quarter one year earlier, gross margin weakened as revenue declined more sharply than cost of revenue.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the sequential gross margin improvement.