KL

KLA Corporation stock research

Jun 30, 2024

FY2024 Q4

KLA (KLAC) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, leading to an improved gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q4

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, leading to an improved gross margin.

  • The strongest observable margin driver is the expansion of gross margin, which improved sequentially and year-over-year as revenue growth outpaced the increase in cost of revenue.
  • Gross margin improved relative to both the prior quarter and the year-ago quarter, with the current quarter's margin being the highest among the three periods.

Gross margin snapshot

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

Gross margin

60.7%

Gross profit

$1.6B

Revenue

$2.6B

Cost of revenue

$1.0B

Quarter-over-quarter change

+2.8 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.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$2.4B$1.5B$946.9M60.5%
Dec 31, 2023$2.5B$1.5B$976.7M60.7%
Mar 31, 2024$2.4B$1.4B$993.9M57.9%
Jun 30, 2024$2.6B$1.6B$1.0B60.7%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+2.8 pts

Year-over-year change

Jun 30, 2023

+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 expansion of gross margin, which improved sequentially and year-over-year as revenue growth outpaced the increase in cost of revenue.

Gross margin improved relative to both the prior quarter and the year-ago quarter, with the current quarter's margin being the highest among the three periods.

Monitor operating cash flow trends, as the filing highlights strong cash generation from operations.