MSCI Inc. stock research
FY2024 Q3
MSCI (MSCI) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened slightly from the year-ago level.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened slightly from the year-ago level.
- Gross profit grew faster than revenue on a sequential basis, driving the gross margin higher. The year-ago comparison shows that cost of revenue increased more than revenue, leading to a slightly lower gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in an improved gross margin. Versus the same quarter last year, revenue and gross profit were higher, but cost of revenue increased at a faster pace, causing gross margin to weaken slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.0%
Gross profit
$594.2M
Revenue
$724.7M
Cost of revenue
$130.5M
Quarter-over-quarter change
+0.7 pts
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 |
|---|---|---|---|---|
| Dec 31, 2023 | $690.1M | $562.5M | $127.7M | 81.5% |
| Mar 31, 2024 | $680.0M | $547.4M | $132.6M | 80.5% |
| Jun 30, 2024 | $707.9M | $575.6M | $132.3M | 81.3% |
| Sep 30, 2024 | $724.7M | $594.2M | $130.5M | 82.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.7 pts
Year-over-year change
Sep 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than revenue on a sequential basis, driving the gross margin higher. The year-ago comparison shows that cost of revenue increased more than revenue, leading to a slightly lower gross margin.
Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in an improved gross margin. Versus the same quarter last year, revenue and gross profit were higher, but cost of revenue increased at a faster pace, causing gross margin to weaken slightly.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate has diverged between sequential and year-ago comparisons.