Roper Technologies, Inc. stock research
FY2023 Q3
Roper Technologies (ROP) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue rose at a slower pace than revenue, leading to a slightly improved gross margin.
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. Cost of revenue rose at a slower pace than revenue, leading to a slightly improved gross margin.
- Gross margin improved modestly from both the preceding quarter and the year-ago quarter, driven by revenue growth outpacing the increase in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was slightly higher, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were substantially higher, cost of revenue was higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.1%
Gross profit
$1.1B
Revenue
$1.6B
Cost of revenue
$467.1M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.4 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% |
| Sep 30, 2023 | $1.6B | $1.1B | $467.1M | 70.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.4 pts
Year-over-year change
Sep 30, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved modestly from both the preceding quarter and the year-ago quarter, driven by revenue growth outpacing the increase in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was slightly higher, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were substantially higher, cost of revenue was higher, and gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as its growth rate directly influences gross margin stability.