Moody's Corporation stock research
FY2024 Q3
Moody's (MCO) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was also stable sequentially and higher year-over-year, but cost of revenue increased, causing gross margin to weaken slightly from both periods.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was also stable sequentially and higher year-over-year, but cost of revenue increased, causing gross margin to weaken slightly from both periods.
- The strongest observable driver is the increase in cost of revenue relative to revenue, as revenue was unchanged sequentially while cost of revenue rose.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased while revenue remained stable. Compared to the same quarter one year earlier, gross margin was slightly lower, as revenue and gross profit grew but cost of revenue grew at a faster pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.8%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$512.0M
Quarter-over-quarter change
-2.4 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $1.8B | $1.3B | $512.0M | 71.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-2.4 pts
Year-over-year change
Sep 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the increase in cost of revenue relative to revenue, as revenue was unchanged sequentially while cost of revenue rose.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased while revenue remained stable. Compared to the same quarter one year earlier, gross margin was slightly lower, as revenue and gross profit grew but cost of revenue grew at a faster pace.
Monitor the trend in cost of revenue, as its increase relative to revenue has compressed gross margin.