NXP Semiconductors N.V. stock research
FY2023 Q4
NXP Semiconductors N.V. (NXPI) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was stable compared to the prior quarter, while gross profit decreased slightly and cost of revenue remained unchanged, resulting in a modest weakening of gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue increased, and gross margin was slightly lower.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was stable compared to the prior quarter, while gross profit decreased slightly and cost of revenue remained unchanged, resulting in a modest weakening of gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue increased, and gross margin was slightly lower.
- The strongest observable margin driver was the relationship between revenue and cost of revenue: revenue held steady while cost of revenue did not change, yet gross profit declined, indicating a shift in the composition of costs relative to revenue.
- Compared to the immediately preceding quarter, gross margin weakened slightly as gross profit decreased while revenue was unchanged. Compared to the same quarter one year earlier, gross margin was slightly lower, with revenue and gross profit both higher but cost of revenue also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.6%
Gross profit
$1.9B
Revenue
$3.4B
Cost of revenue
$1.5B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| Apr 2, 2023 | $3.1B | $1.8B | $1.4B | 56.7% |
| Jul 2, 2023 | $3.3B | $1.9B | $1.4B | 57.0% |
| Oct 1, 2023 | $3.4B | $2.0B | $1.5B | 57.2% |
| Dec 31, 2023 | $3.4B | $1.9B | $1.5B | 56.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 1, 2023
-0.6 pts
Year-over-year change
Dec 31, 2022
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the relationship between revenue and cost of revenue: revenue held steady while cost of revenue did not change, yet gross profit declined, indicating a shift in the composition of costs relative to revenue.
Compared to the immediately preceding quarter, gross margin weakened slightly as gross profit decreased while revenue was unchanged. Compared to the same quarter one year earlier, gross margin was slightly lower, with revenue and gross profit both higher but cost of revenue also higher.
Monitor the trajectory of cost of revenue relative to revenue, as a stable revenue base with declining gross profit suggests potential pressure on cost efficiency.