MS

MSCI Inc. stock research

Dec 31, 2024

FY2024 Q4

MSCI (MSCI) Gross Margin — Quarter Ended Dec 31, 2024

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

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

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

  • The relationship among revenue, cost of revenue, and gross profit shows that revenue growth outpaced cost growth compared to the prior quarter, but gross margin still weakened slightly. Compared to the year-ago quarter, revenue and gross profit grew while cost of revenue increased at a slower pace, leading to an improved gross margin.
  • Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

81.7%

Gross profit

$607.6M

Revenue

$743.5M

Cost of revenue

$135.9M

Quarter-over-quarter change

-0.3 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.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$680.0M$547.4M$132.6M80.5%
Jun 30, 2024$707.9M$575.6M$132.3M81.3%
Sep 30, 2024$724.7M$594.2M$130.5M82.0%
Dec 31, 2024$743.5M$607.6M$135.9M81.7%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-0.3 pts

Year-over-year change

Dec 31, 2023

+0.2 pts

What the margin says

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

The relationship among revenue, cost of revenue, and gross profit shows that revenue growth outpaced cost growth compared to the prior quarter, but gross margin still weakened slightly. Compared to the year-ago quarter, revenue and gross profit grew while cost of revenue increased at a slower pace, leading to an improved gross margin.

Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was higher.

Monitor the trend in cost of revenue relative to revenue, as its growth rate influences gross margin direction.