MSCI Inc. stock research
FY2023 Q2
MSCI (MSCI) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and was higher than the year-ago period, reflecting a favorable relationship between revenue growth and cost changes.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and was higher than the year-ago period, reflecting a favorable relationship between revenue growth and cost changes.
- The strongest observable driver is the consistent expansion of gross margin, which improved sequentially and year-over-year, supported by revenue growth outpacing the increase in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Versus the same quarter one year earlier, all metrics were higher, with gross margin also showing improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.4%
Gross profit
$505.9M
Revenue
$621.2M
Cost of revenue
$115.3M
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.9 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% |
| Jun 30, 2023 | $621.2M | $505.9M | $115.3M | 81.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.7 pts
Year-over-year change
Jun 30, 2022
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the consistent expansion of gross margin, which improved sequentially and year-over-year, supported by revenue growth outpacing the increase in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Versus the same quarter one year earlier, all metrics were higher, with gross margin also showing improvement.
Monitor the trend in cost of revenue relative to revenue, as its growth rate could affect future gross margin stability.