Royal Caribbean Cruises Ltd. stock research
FY2023 Q2
Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved versus both periods, reflecting a larger share of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved versus both periods, reflecting a larger share of revenue retained as gross profit.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to an improved gross margin.
- Compared to the immediately preceding quarter, gross margin was higher, driven by a larger increase in revenue relative to cost of revenue. Versus the same quarter one year earlier, gross margin was also higher, with revenue growth outpacing cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.5%
Gross profit
$1.6B
Revenue
$3.5B
Cost of revenue
$2.0B
Quarter-over-quarter change
+6.6 pts
Year-over-year change
+21.4 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, 2023 | $2.9B | $1.1B | $1.8B | 37.9% |
| Jun 30, 2023 | $3.5B | $1.6B | $2.0B | 44.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+6.6 pts
Year-over-year change
Jun 30, 2022
+21.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to an improved gross margin.
Compared to the immediately preceding quarter, gross margin was higher, driven by a larger increase in revenue relative to cost of revenue. Versus the same quarter one year earlier, gross margin was also higher, with revenue growth outpacing cost of revenue growth.
Monitor the trajectory of cost of revenue relative to revenue, as any shift in this relationship could affect gross margin stability.