MSCI Inc. stock research
FY2023 Q1
MSCI (MSCI) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago quarter, reflecting a mixed trend.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago quarter, reflecting a mixed trend.
- The strongest observable driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the year-ago quarter, supporting gross margin improvement.
- Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue grew at a faster pace, leading to a slightly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.7%
Gross profit
$478.1M
Revenue
$592.2M
Cost of revenue
$114.1M
Quarter-over-quarter change
n/a
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 |
|---|---|---|---|---|
| Mar 31, 2023 | $592.2M | $478.1M | $114.1M | 80.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+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 relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the year-ago quarter, supporting gross margin improvement.
Compared to the prior quarter, revenue and gross profit were higher, but cost of revenue grew at a faster pace, leading to a slightly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trend in cost of revenue relative to revenue, as its faster growth in the current quarter compared to the prior quarter pressured gross margin.