Synopsys, Inc. stock research
FY2024 Q4
Synopsys (SNPS) Gross Margin — Quarter Ended Oct 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose more sharply. As a result, gross margin weakened from both comparison periods.
Gross margin takeaway
Quarter ended Oct 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose more sharply. As a result, gross margin weakened from both comparison periods.
- The strongest observable driver of gross margin was the increase in cost of revenue, which grew faster than revenue, compressing margin.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.1%
Gross profit
$1.3B
Revenue
$1.6B
Cost of revenue
$375.0M
Quarter-over-quarter change
-3.9 pts
Year-over-year change
-3.4 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 |
|---|---|---|---|---|
| Jan 31, 2024 | $1.5B | $1.2B | $279.2M | 81.5% |
| Apr 30, 2024 | $1.5B | $1.2B | $300.4M | 79.4% |
| Jul 31, 2024 | $1.5B | $1.2B | $290.7M | 80.9% |
| Oct 31, 2024 | $1.6B | $1.3B | $375.0M | 77.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2024
-3.9 pts
Year-over-year change
Oct 31, 2023
-3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the increase in cost of revenue, which grew faster than revenue, compressing margin.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.