Royal Caribbean Cruises Ltd. stock research
FY2023 Q3
Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue growth and cost control.
- The strongest observable driver of gross margin improvement is the faster growth in revenue relative to cost of revenue, as revenue increased while cost of revenue rose by a smaller proportion.
- Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher sequentially but stable year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.6%
Gross profit
$2.0B
Revenue
$4.2B
Cost of revenue
$2.1B
Quarter-over-quarter change
+4.1 pts
Year-over-year change
+14.3 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% |
| Sep 30, 2023 | $4.2B | $2.0B | $2.1B | 48.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+4.1 pts
Year-over-year change
Sep 30, 2022
+14.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin improvement is the faster growth in revenue relative to cost of revenue, as revenue increased while cost of revenue rose by a smaller proportion.
Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher sequentially but stable year-over-year.
Monitor the trend in cost of revenue relative to revenue, as its slower growth supported margin expansion this quarter.