MSCI Inc. stock research
FY2023 Q3
MSCI (MSCI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved versus both periods, reflecting a favorable relationship between revenue growth and cost management.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved versus both periods, reflecting a favorable relationship between revenue growth and cost management.
- The strongest observable margin driver is the sequential decline in cost of revenue alongside revenue growth, which directly supported gross margin expansion.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.3%
Gross profit
$514.9M
Revenue
$625.4M
Cost of revenue
$110.6M
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+1.1 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% |
| Sep 30, 2023 | $625.4M | $514.9M | $110.6M | 82.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.9 pts
Year-over-year change
Sep 30, 2022
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential decline in cost of revenue alongside revenue growth, which directly supported gross margin expansion.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin also improved.
Monitor the trajectory of cost of revenue, as its sequential decline was a key factor in margin improvement.