MS

MSCI Inc. stock research

Jun 30, 2024

FY2024 Q2

MSCI (MSCI) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but was slightly lower than the year-ago period, reflecting a mixed performance.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but was slightly lower than the year-ago period, reflecting a mixed performance.

  • The sequential improvement in gross margin was driven by gross profit growing faster than revenue, while cost of revenue remained nearly flat. Compared to a year ago, cost of revenue increased more than proportionally, leading to a slight margin decline.
  • Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was slightly lower, and gross margin improved. Versus the same quarter last year, 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

81.3%

Gross profit

$575.6M

Revenue

$707.9M

Cost of revenue

$132.3M

Quarter-over-quarter change

+0.8 pts

Year-over-year change

-0.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$625.4M$514.9M$110.6M82.3%
Dec 31, 2023$690.1M$562.5M$127.7M81.5%
Mar 31, 2024$680.0M$547.4M$132.6M80.5%
Jun 30, 2024$707.9M$575.6M$132.3M81.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+0.8 pts

Year-over-year change

Jun 30, 2023

-0.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The sequential improvement in gross margin was driven by gross profit growing faster than revenue, while cost of revenue remained nearly flat. Compared to a year ago, cost of revenue increased more than proportionally, leading to a slight margin decline.

Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was slightly lower, and gross margin improved. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.

Monitor cost of revenue trends, as it increased year-over-year while gross margin remained relatively stable.

MSCI Gross Margin — Quarter Ended Jun 30, 2024