Royal Caribbean Cruises Ltd. stock research
FY2023 Q1
Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially but lower year-over-year. Gross margin improved versus both periods, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable sequentially but lower year-over-year. Gross margin improved versus both periods, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
- The improvement in gross margin was driven by revenue growing faster than cost of revenue, as gross profit increased while cost of revenue remained relatively stable.
- Compared to the immediately preceding quarter, gross margin was higher, with revenue and gross profit rising while cost of revenue was essentially unchanged. Versus the same quarter one year earlier, gross margin turned positive from negative, as revenue and gross profit increased substantially and cost of revenue declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.9%
Gross profit
$1.1B
Revenue
$2.9B
Cost of revenue
$1.8B
Quarter-over-quarter change
n/a
Year-over-year change
+49.7 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, 2023 | $2.9B | $1.1B | $1.8B | 37.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+49.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue growing faster than cost of revenue, as gross profit increased while cost of revenue remained relatively stable.
Compared to the immediately preceding quarter, gross margin was higher, with revenue and gross profit rising while cost of revenue was essentially unchanged. Versus the same quarter one year earlier, gross margin turned positive from negative, as revenue and gross profit increased substantially and cost of revenue declined.
Monitor the trajectory of cost of revenue, which remained stable sequentially but could pressure gross margin if it rises faster than revenue.