Roper Technologies, Inc. stock research
FY2023 Q1
Roper Technologies (ROP) 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 also rose. Gross margin weakened slightly from the prior quarter and the year-ago quarter, reflecting a proportionally larger increase in cost of revenue relative to 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 also rose. Gross margin weakened slightly from the prior quarter and the year-ago quarter, reflecting a proportionally larger increase in cost of revenue relative to revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased at a slower pace than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to a slight compression in gross margin.
- Compared to the immediately preceding quarter, gross margin was lower, as revenue increased but cost of revenue rose at a faster rate. Compared to the same quarter one year earlier, gross margin was also lower, with revenue and cost of revenue both higher but cost of revenue growing more rapidly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.3%
Gross profit
$1.0B
Revenue
$1.5B
Cost of revenue
$451.1M
Quarter-over-quarter change
n/a
Year-over-year change
-0.8 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 | $1.5B | $1.0B | $451.1M | 69.3% |
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
-0.8 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 at a slower pace than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to a slight compression in gross margin.
Compared to the immediately preceding quarter, gross margin was lower, as revenue increased but cost of revenue rose at a faster rate. Compared to the same quarter one year earlier, gross margin was also lower, with revenue and cost of revenue both higher but cost of revenue growing more rapidly.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has contributed to margin compression in the current quarter.