Nasdaq, Inc. stock research
FY2024 Q4
Nasdaq (NDAQ) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin remained nearly stable, showing a slight improvement from the previous quarter but was lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin remained nearly stable, showing a slight improvement from the previous quarter but was lower than the same quarter one year earlier.
- The relationship among revenue, gross profit, and cost of revenue indicates that revenue growth outpaced cost growth, supporting a marginally higher gross margin versus the prior quarter. The year-ago comparison shows a lower gross margin, driven by a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.4%
Gross profit
$1.2B
Revenue
$2.0B
Cost of revenue
$803.0M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-7.4 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, 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% |
| Dec 31, 2024 | $2.0B | $1.2B | $803.0M | 60.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.2 pts
Year-over-year change
Dec 31, 2023
-7.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, gross profit, and cost of revenue indicates that revenue growth outpaced cost growth, supporting a marginally higher gross margin versus the prior quarter. The year-ago comparison shows a lower gross margin, driven by a proportionally larger increase in cost of revenue relative to revenue.
Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has been a key factor in the year-over-year gross margin decline.