Moody's Corporation stock research
FY2023 Q2
Moody's (MCO) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was stable compared to the prior quarter and higher than a year earlier. Gross profit increased sequentially and year-over-year, while cost of revenue decreased slightly from the prior quarter but rose from the year-ago period, resulting in a gross margin that improved from the prior quarter and matched the year-ago level.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was stable compared to the prior quarter and higher than a year earlier. Gross profit increased sequentially and year-over-year, while cost of revenue decreased slightly from the prior quarter but rose from the year-ago period, resulting in a gross margin that improved from the prior quarter and matched the year-ago level.
- The gross margin improvement from the prior quarter was accompanied by a slight reduction in cost of revenue and an increase in gross profit, with revenue unchanged. This combination drove the margin higher.
- Compared to the prior quarter, gross margin improved as gross profit rose and cost of revenue edged lower. Versus the same quarter last year, gross margin was stable despite higher cost of revenue, as gross profit increased proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.5%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$426.0M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-0.1 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 | $1.5B | $1.0B | $428.0M | 70.9% |
| Jun 30, 2023 | $1.5B | $1.1B | $426.0M | 71.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.6 pts
Year-over-year change
Jun 30, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was accompanied by a slight reduction in cost of revenue and an increase in gross profit, with revenue unchanged. This combination drove the margin higher.
Compared to the prior quarter, gross margin improved as gross profit rose and cost of revenue edged lower. Versus the same quarter last year, gross margin was stable despite higher cost of revenue, as gross profit increased proportionally.
Monitor cost of revenue trends, as it declined sequentially but increased year-over-year, affecting gross margin dynamics.