Moody's Corporation stock research
FY2023 Q3
Moody's (MCO) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter, while cost of revenue decreased, leading to higher gross profit and an improved gross margin. Compared to the same quarter a year earlier, revenue and gross profit both increased, with gross margin strengthening.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter, while cost of revenue decreased, leading to higher gross profit and an improved gross margin. Compared to the same quarter a year earlier, revenue and gross profit both increased, with gross margin strengthening.
- The most notable observable factor was the lower cost of revenue in the current quarter relative to the prior quarter, while revenue remained unchanged. Year-over-year, cost of revenue increased at a slower pace than revenue.
- Sequentially, gross margin improved as cost of revenue fell while revenue held steady. Year-over-year, gross margin strengthened as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.0%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$412.0M
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+2.8 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.5B | $1.0B | $428.0M | 70.9% |
| Jun 30, 2023 | $1.5B | $1.1B | $426.0M | 71.5% |
| Sep 30, 2023 | $1.5B | $1.1B | $412.0M | 72.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.5 pts
Year-over-year change
Sep 30, 2022
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable factor was the lower cost of revenue in the current quarter relative to the prior quarter, while revenue remained unchanged. Year-over-year, cost of revenue increased at a slower pace than revenue.
Sequentially, gross margin improved as cost of revenue fell while revenue held steady. Year-over-year, gross margin strengthened as revenue grew faster than cost of revenue.
Monitor cost of revenue trends, given its recent decline alongside stable revenue.