ND

Nasdaq, Inc. stock research

Jun 30, 2023

FY2023 Q2

Nasdaq (NDAQ) Gross Margin — Quarter Ended Jun 30, 2023

Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased and cost of revenue decreased. Gross margin improved significantly as a result.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased and cost of revenue decreased. Gross margin improved significantly as a result.

  • The gross margin improvement coincided with a lower cost of revenue and a higher gross profit relative to both comparison periods, despite lower revenue.
  • Compared to the immediately preceding quarter, revenue was lower, gross profit was higher, cost of revenue was lower, and gross margin improved. The same directional changes were observed versus the same quarter one year earlier.

Gross margin snapshot

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

Gross margin

64.5%

Gross profit

$925.0M

Revenue

$1.4B

Cost of revenue

$508.0M

Quarter-over-quarter change

+4.9 pts

Year-over-year change

+7.0 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, 2023$1.5B$914.0M$619.0M59.6%
Jun 30, 2023$1.4B$925.0M$508.0M64.5%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+4.9 pts

Year-over-year change

Jun 30, 2022

+7.0 pts

What the margin says

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

The gross margin improvement coincided with a lower cost of revenue and a higher gross profit relative to both comparison periods, despite lower revenue.

Compared to the immediately preceding quarter, revenue was lower, gross profit was higher, cost of revenue was lower, and gross margin improved. The same directional changes were observed versus the same quarter one year earlier.

Monitor the trajectory of cost of revenue, as its decline was a key factor in the margin expansion.