Roper Technologies, Inc. stock research
FY2024 Q1
Roper Technologies (ROP) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly versus both periods, reflecting a proportionally smaller increase in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly versus both periods, reflecting a proportionally smaller 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 more than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to a higher gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was also higher but at a slower rate, resulting in an improved gross margin. Versus the same quarter one year earlier, all three metrics were higher, with gross margin again improving as cost of revenue grew less than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.3%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$499.7M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+1.0 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% |
| Mar 31, 2024 | $1.7B | $1.2B | $499.7M | 70.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.1 pts
Year-over-year change
Mar 31, 2023
+1.0 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, leading to a higher gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was also higher but at a slower rate, resulting in an improved gross margin. Versus the same quarter one year earlier, all three metrics were higher, with gross margin again improving as cost of revenue grew less than revenue.
Monitor the trend in cost of revenue relative to revenue, as any acceleration in cost growth could pressure gross margin.