NX

NXP Semiconductors N.V. stock research

Mar 31, 2024

FY2024 Q1

NXP Semiconductors N.V. (NXPI) Gross Margin — Quarter Ended Mar 31, 2024

Revenue decreased from the prior quarter and was unchanged from the same quarter a year earlier. Gross profit declined in line with revenue, while cost of revenue fell at a faster pace, leading to an improvement in gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue decreased from the prior quarter and was unchanged from the same quarter a year earlier. Gross profit declined in line with revenue, while cost of revenue fell at a faster pace, leading to an improvement in gross margin.

  • The primary observable driver is the reduction in cost of revenue relative to revenue. Compared with both the preceding quarter and the year-ago quarter, cost of revenue decreased more sharply than revenue, expanding gross margin.
  • Gross margin improved compared with the immediately preceding quarter and also edged higher compared with the same quarter one year earlier. Revenue was stable year over year but lower sequentially, while cost of revenue declined in both comparisons.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

57.0%

Gross profit

$1.8B

Revenue

$3.1B

Cost of revenue

$1.3B

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+0.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jul 2, 2023$3.3B$1.9B$1.4B57.0%
Oct 1, 2023$3.4B$2.0B$1.5B57.2%
Dec 31, 2023$3.4B$1.9B$1.5B56.6%
Mar 31, 2024$3.1B$1.8B$1.3B57.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

+0.4 pts

Year-over-year change

Apr 2, 2023

+0.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary observable driver is the reduction in cost of revenue relative to revenue. Compared with both the preceding quarter and the year-ago quarter, cost of revenue decreased more sharply than revenue, expanding gross margin.

Gross margin improved compared with the immediately preceding quarter and also edged higher compared with the same quarter one year earlier. Revenue was stable year over year but lower sequentially, while cost of revenue declined in both comparisons.

Monitor whether the trend of cost of revenue declining faster than revenue can be sustained in upcoming quarters.