RC

Royal Caribbean Cruises Ltd. stock research

Jun 30, 2024

FY2024 Q2

Royal Caribbean Cruises (RCL) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit improved, leading to a higher gross margin than both comparison periods.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit improved, leading to a higher gross margin than both comparison periods.

  • The gross margin strengthened sequentially and year-over-year, driven by gross profit growing faster than revenue. The relationship between revenue and cost of revenue shifted favorably.
  • Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was also higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

47.6%

Gross profit

$2.0B

Revenue

$4.1B

Cost of revenue

$2.2B

Quarter-over-quarter change

+2.8 pts

Year-over-year change

+3.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$4.2B$2.0B$2.1B48.6%
Dec 31, 2023$3.3B$1.4B$1.9B43.3%
Mar 31, 2024$3.7B$1.7B$2.1B44.8%
Jun 30, 2024$4.1B$2.0B$2.2B47.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+2.8 pts

Year-over-year change

Jun 30, 2023

+3.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin strengthened sequentially and year-over-year, driven by gross profit growing faster than revenue. The relationship between revenue and cost of revenue shifted favorably.

Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was also higher.

Monitor the trend in cost of revenue relative to revenue, as its growth rate influences gross margin sustainability.

RCL Gross Margin — Quarter Ended Jun 30, 2024