Moody's Corporation stock research
FY2024 Q4
Moody's (MCO) Gross Margin — Quarter Ended Dec 31, 2024
Revenue, gross profit, and cost of revenue all decreased from the prior quarter but increased from the same quarter a year ago. Gross margin weakened relative to both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue, gross profit, and cost of revenue all decreased from the prior quarter but increased from the same quarter a year ago. Gross margin weakened relative to both the preceding quarter and the year-ago quarter.
- The most notable driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue fell less than revenue, and year-over-year it rose more than revenue, compressing the margin.
- Compared to the prior quarter, revenue and gross profit were lower while cost of revenue was also lower, but gross margin declined. Versus the same quarter last year, revenue and gross profit were higher, yet gross margin weakened as 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
70.3%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$497.0M
Quarter-over-quarter change
-1.5 pts
Year-over-year change
-1.3 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $1.7B | $1.2B | $497.0M | 70.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.5 pts
Year-over-year change
Dec 31, 2023
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue fell less than revenue, and year-over-year it rose more than revenue, compressing the margin.
Compared to the prior quarter, revenue and gross profit were lower while cost of revenue was also lower, but gross margin declined. Versus the same quarter last year, revenue and gross profit were higher, yet gross margin weakened as cost of revenue grew at a faster pace.
Monitor the trend in cost of revenue as a percentage of revenue in future quarters.