Synopsys, Inc. stock research
FY2023 Q2
Synopsys (SNPS) Gross Margin — Quarter Ended Apr 30, 2023
Revenue and gross profit were both lower than the prior quarter but stable compared to the same quarter last year. Cost of revenue decreased from the prior quarter, contributing to a slightly improved gross margin.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2023 Q2
Revenue and gross profit were both lower than the prior quarter but stable compared to the same quarter last year. Cost of revenue decreased from the prior quarter, contributing to a slightly improved gross margin.
- The gross margin improved from the prior quarter, driven by a reduction in cost of revenue relative to revenue. Compared to the same quarter last year, the gross margin was essentially stable.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all broadly similar.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.3%
Gross profit
$1.0B
Revenue
$1.3B
Cost of revenue
$248.2M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $1.4B | $1.1B | $284.4M | 79.1% |
| Apr 30, 2023 | $1.3B | $1.0B | $248.2M | 80.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
+1.2 pts
Year-over-year change
Apr 30, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved from the prior quarter, driven by a reduction in cost of revenue relative to revenue. Compared to the same quarter last year, the gross margin was essentially stable.
Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all broadly similar.
Monitor the trend in cost of revenue, as its decline relative to revenue was the primary factor behind the gross margin improvement.