Moody's Corporation stock research
FY2024 Q2
Moody's (MCO) Gross Margin — Quarter Ended Jun 30, 2024
In the current quarter, revenue and gross profit were similar to the prior quarter, while cost of revenue was slightly higher, yet gross margin improved. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and gross margin improved as well.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
In the current quarter, revenue and gross profit were similar to the prior quarter, while cost of revenue was slightly higher, yet gross margin improved. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and gross margin improved as well.
- The strongest observable margin driver is the improvement in gross margin relative to cost of revenue. Over the year, revenue growth outpaced cost growth, and sequentially the margin edged higher despite a slight increase in cost.
- Compared to the prior quarter, gross margin improved slightly while revenue and gross profit were stable. Compared to the same quarter last year, all three metrics—revenue, gross profit, and cost of revenue—were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.2%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$469.0M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+2.7 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $1.8B | $1.3B | $469.0M | 74.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.3 pts
Year-over-year change
Jun 30, 2023
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin relative to cost of revenue. Over the year, revenue growth outpaced cost growth, and sequentially the margin edged higher despite a slight increase in cost.
Compared to the prior quarter, gross margin improved slightly while revenue and gross profit were stable. Compared to the same quarter last year, all three metrics—revenue, gross profit, and cost of revenue—were higher, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as it increased sequentially but margin still improved.