Nasdaq, Inc. stock research
FY2023 Q4
Nasdaq (NDAQ) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was essentially stable compared to the same quarter one year earlier, while gross profit increased and cost of revenue decreased, resulting in a higher gross margin. Sequentially, revenue and gross profit both rose, cost of revenue increased slightly, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was essentially stable compared to the same quarter one year earlier, while gross profit increased and cost of revenue decreased, resulting in a higher gross margin. Sequentially, revenue and gross profit both rose, cost of revenue increased slightly, and gross margin improved.
- The strongest observable margin driver is the reduction in cost of revenue relative to the prior year, which outpaced the change in revenue and directly lifted gross margin. The sequential improvement in gross profit relative to the increase in cost of revenue also contributed to the higher margin.
- Compared to the immediately preceding quarter, gross margin was higher, driven by a larger increase in gross profit than in cost of revenue. Compared to the same quarter one year earlier, gross margin was markedly higher, as gross profit rose while cost of revenue declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.8%
Gross profit
$1.1B
Revenue
$1.6B
Cost of revenue
$530.0M
Quarter-over-quarter change
+3.0 pts
Year-over-year change
+10.5 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% |
| Dec 31, 2023 | $1.6B | $1.1B | $530.0M | 67.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+3.0 pts
Year-over-year change
Dec 31, 2022
+10.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to the prior year, which outpaced the change in revenue and directly lifted gross margin. The sequential improvement in gross profit relative to the increase in cost of revenue also contributed to the higher margin.
Compared to the immediately preceding quarter, gross margin was higher, driven by a larger increase in gross profit than in cost of revenue. Compared to the same quarter one year earlier, gross margin was markedly higher, as gross profit rose while cost of revenue declined.
Monitor the trend in cost of revenue, as its year-over-year decline was a key factor in the margin improvement.