KLA Corporation stock research
FY2024 Q3
KLA (KLAC) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was slightly lower than the prior quarter, while gross profit decreased at a faster pace, causing gross margin to weaken. Compared with the same quarter one year earlier, revenue was stable, gross profit was similar, and gross margin was slightly lower.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
Revenue was slightly lower than the prior quarter, while gross profit decreased at a faster pace, causing gross margin to weaken. Compared with the same quarter one year earlier, revenue was stable, gross profit was similar, and gross margin was slightly lower.
- Cost of revenue was higher relative to revenue compared with the prior quarter, which was the primary factor behind the gross margin decline. The year-ago comparison shows a similar pattern, with cost of revenue slightly higher relative to revenue.
- Compared with the immediately preceding quarter, revenue was lower and gross profit was lower, while cost of revenue was slightly higher, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was essentially unchanged, gross profit was similar, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.9%
Gross profit
$1.4B
Revenue
$2.4B
Cost of revenue
$993.9M
Quarter-over-quarter change
-2.8 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.4B | $1.4B | $962.9M | 59.1% |
| Sep 30, 2023 | $2.4B | $1.5B | $946.9M | 60.5% |
| Dec 31, 2023 | $2.5B | $1.5B | $976.7M | 60.7% |
| Mar 31, 2024 | $2.4B | $1.4B | $993.9M | 57.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-2.8 pts
Year-over-year change
Mar 31, 2023
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue was higher relative to revenue compared with the prior quarter, which was the primary factor behind the gross margin decline. The year-ago comparison shows a similar pattern, with cost of revenue slightly higher relative to revenue.
Compared with the immediately preceding quarter, revenue was lower and gross profit was lower, while cost of revenue was slightly higher, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was essentially unchanged, gross profit was similar, and gross margin was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as it has increased in proportion compared with both the prior quarter and the year-ago quarter.