Omnicom Group Inc. stock research
FY2024 Q3
Omnicom Group (OMC) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Versus the same quarter last year, revenue and cost of revenue both increased, but gross profit was slightly lower, leaving gross margin unchanged.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Versus the same quarter last year, revenue and cost of revenue both increased, but gross profit was slightly lower, leaving gross margin unchanged.
- The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue relative to revenue, as gross profit rose while revenue held steady.
- Compared to the immediately preceding quarter, gross margin improved as gross profit increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin was stable, with both revenue and cost of revenue higher but gross profit slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.6%
Gross profit
$761.0M
Revenue
$3.9B
Cost of revenue
$3.1B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-0.0 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 | $4.1B | $816.0M | $3.2B | 20.1% |
| Mar 31, 2024 | $3.6B | $623.8M | $3.0B | 17.2% |
| Jun 30, 2024 | $3.9B | $681.7M | $3.2B | 17.7% |
| Sep 30, 2024 | $3.9B | $761.0M | $3.1B | 19.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.9 pts
Year-over-year change
Sep 30, 2023
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue relative to revenue, as gross profit rose while revenue held steady.
Compared to the immediately preceding quarter, gross margin improved as gross profit increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin was stable, with both revenue and cost of revenue higher but gross profit slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its decline contributed to the margin improvement this quarter.