Roper Technologies, Inc. stock research
FY2023 Q2
Roper Technologies (ROP) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter and was stable relative to the year-ago period, as cost of revenue grew at a slower pace than revenue.
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. Gross margin improved slightly from the prior quarter and was stable relative to the year-ago period, as cost of revenue grew at a slower pace than revenue.
- 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, supporting gross margin expansion.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.7%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$464.1M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.2 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% |
| Jun 30, 2023 | $1.5B | $1.1B | $464.1M | 69.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.4 pts
Year-over-year change
Jun 30, 2022
+0.2 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, supporting gross margin expansion.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was stable.
Monitor the trend in cost of revenue relative to revenue, as any acceleration in cost growth could pressure gross margin.