Royal Caribbean Cruises Ltd. stock research
FY2023 Q4
Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Dec 31, 2023
Revenue decreased from the prior quarter, while gross profit and cost of revenue also declined, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue decreased from the prior quarter, while gross profit and cost of revenue also declined, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
- The gross margin weakened sequentially as the decline in gross profit outpaced the reduction in cost of revenue relative to revenue. Year over year, the gross margin strengthened, with gross profit growing faster than cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.3%
Gross profit
$1.4B
Revenue
$3.3B
Cost of revenue
$1.9B
Quarter-over-quarter change
-5.4 pts
Year-over-year change
+11.8 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% |
| Dec 31, 2023 | $3.3B | $1.4B | $1.9B | 43.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-5.4 pts
Year-over-year change
Dec 31, 2022
+11.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as the decline in gross profit outpaced the reduction in cost of revenue relative to revenue. Year over year, the gross margin strengthened, with gross profit growing faster than cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor the relationship between revenue and cost of revenue in the next quarter to assess whether the sequential margin weakening persists.