Moody's Corporation stock research
FY2024 Q1
Moody's (MCO) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose, but gross margin improved, reflecting a favorable relationship between revenue and cost.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose, but gross margin improved, reflecting a favorable relationship between revenue and cost.
- The improvement in gross margin was driven by revenue growing at a faster pace than cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improving. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.9%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$467.0M
Quarter-over-quarter change
+2.3 pts
Year-over-year change
+3.0 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 | $1.5B | $1.1B | $426.0M | 71.5% |
| Sep 30, 2023 | $1.5B | $1.1B | $412.0M | 72.0% |
| Dec 31, 2023 | $1.5B | $1.1B | $421.0M | 71.6% |
| Mar 31, 2024 | $1.8B | $1.3B | $467.0M | 73.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.3 pts
Year-over-year change
Mar 31, 2023
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue growing at a faster pace than cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improving. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue to assess whether the margin improvement can be sustained.