Nasdaq, Inc. stock research
FY2024 Q3
Nasdaq (NDAQ) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was higher compared to both the prior quarter and the same quarter last year, but gross margin weakened in both comparisons as cost of revenue increased more than gross profit.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was higher compared to both the prior quarter and the same quarter last year, but gross margin weakened in both comparisons as cost of revenue increased more than gross profit.
- The most observable driver of the gross margin decline is the proportionally larger increase in cost of revenue relative to gross profit, which compressed the margin.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter a year ago, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.3%
Gross profit
$1.1B
Revenue
$1.9B
Cost of revenue
$756.0M
Quarter-over-quarter change
-4.4 pts
Year-over-year change
-4.5 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $1.6B | $1.1B | $530.0M | 67.8% |
| Mar 31, 2024 | $1.7B | $1.1B | $557.0M | 66.7% |
| Jun 30, 2024 | $1.8B | $1.2B | $633.0M | 64.7% |
| Sep 30, 2024 | $1.9B | $1.1B | $756.0M | 60.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-4.4 pts
Year-over-year change
Sep 30, 2023
-4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin decline is the proportionally larger increase in cost of revenue relative to gross profit, which compressed the margin.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter a year ago, gross margin was also lower.
Monitor the trend in cost of revenue, as its growth relative to revenue is the primary factor pressuring gross margin.