Synopsys, Inc. stock research
FY2024 Q2
Synopsys (SNPS) Gross Margin — Quarter Ended Apr 30, 2024
Revenue was stable compared to the prior quarter, while gross profit remained at a similar level as cost of revenue increased. Gross margin weakened from the prior quarter and was also lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Apr 30, 2024 · FY2024 Q2
Revenue was stable compared to the prior quarter, while gross profit remained at a similar level as cost of revenue increased. Gross margin weakened from the prior quarter and was also lower than the same quarter one year earlier.
- The most observable driver of gross margin was the increase in cost of revenue relative to revenue, which compressed margin despite stable revenue.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue was unchanged. Versus the same quarter one year earlier, gross margin was lower, with revenue higher but cost of revenue increasing at a faster pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.4%
Gross profit
$1.2B
Revenue
$1.5B
Cost of revenue
$300.4M
Quarter-over-quarter change
-2.2 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 |
|---|---|---|---|---|
| Jul 31, 2023 | $1.4B | $1.1B | $260.4M | 80.8% |
| Oct 31, 2023 | $1.5B | $1.2B | $286.2M | 80.5% |
| Jan 31, 2024 | $1.5B | $1.2B | $279.2M | 81.5% |
| Apr 30, 2024 | $1.5B | $1.2B | $300.4M | 79.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2024
-2.2 pts
Year-over-year change
Apr 30, 2023
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin was the increase in cost of revenue relative to revenue, which compressed margin despite stable revenue.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue was unchanged. Versus the same quarter one year earlier, gross margin was lower, with revenue higher but cost of revenue increasing at a faster pace.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.