MSCI Inc. stock research
FY2024 Q1
MSCI (MSCI) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased. Gross margin weakened slightly versus both the prior quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased. Gross margin weakened slightly versus both the prior quarter and the same quarter one year earlier.
- The gross margin decline was driven by a larger relative increase in cost of revenue compared to the change in revenue. Revenue fell while cost of revenue rose, compressing gross profit.
- Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.5%
Gross profit
$547.4M
Revenue
$680.0M
Cost of revenue
$132.6M
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $621.2M | $505.9M | $115.3M | 81.4% |
| Sep 30, 2023 | $625.4M | $514.9M | $110.6M | 82.3% |
| Dec 31, 2023 | $690.1M | $562.5M | $127.7M | 81.5% |
| Mar 31, 2024 | $680.0M | $547.4M | $132.6M | 80.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.0 pts
Year-over-year change
Mar 31, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by a larger relative increase in cost of revenue compared to the change in revenue. Revenue fell while cost of revenue rose, compressing gross profit.
Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as its increase outpaced revenue changes in the current quarter.