Nasdaq, Inc. stock research
FY2023 Q3
Nasdaq (NDAQ) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased from the preceding quarter but declined from the same quarter a year earlier. Gross profit rose in both comparisons, while cost of revenue was slightly higher sequentially but substantially lower year-over-year, resulting in a gross margin that improved both sequentially and significantly from the prior year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased from the preceding quarter but declined from the same quarter a year earlier. Gross profit rose in both comparisons, while cost of revenue was slightly higher sequentially but substantially lower year-over-year, resulting in a gross margin that improved both sequentially and significantly from the prior year.
- The strongest observable margin driver is the substantial reduction in cost of revenue relative to revenue compared to the same quarter last year. This relationship drove the gross margin higher despite lower revenue.
- Compared to the preceding quarter, revenue, gross profit, and cost of revenue all increased, with gross margin showing a modest improvement. Compared to the same quarter one year earlier, revenue was lower while gross profit was higher, and cost of revenue was significantly lower, leading to a marked improvement in gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.8%
Gross profit
$940.0M
Revenue
$1.5B
Cost of revenue
$511.0M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+7.6 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.5B | $914.0M | $619.0M | 59.6% |
| Jun 30, 2023 | $1.4B | $925.0M | $508.0M | 64.5% |
| Sep 30, 2023 | $1.5B | $940.0M | $511.0M | 64.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.2 pts
Year-over-year change
Sep 30, 2022
+7.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the substantial reduction in cost of revenue relative to revenue compared to the same quarter last year. This relationship drove the gross margin higher despite lower revenue.
Compared to the preceding quarter, revenue, gross profit, and cost of revenue all increased, with gross margin showing a modest improvement. Compared to the same quarter one year earlier, revenue was lower while gross profit was higher, and cost of revenue was significantly lower, leading to a marked improvement in gross margin.
Monitor the trend in cost of revenue as a percentage of revenue to assess whether the margin improvement can be sustained.