TR

Trimble Inc. stock research

Mar 31, 2023

FY2023 Q1

Trimble (TRMB) Gross Margin — Quarter Ended Mar 31, 2023

Revenue, gross profit, and gross margin all increased compared to the immediately preceding quarter, while cost of revenue rose only modestly. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, but gross profit edged higher and gross margin improved.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue, gross profit, and gross margin all increased compared to the immediately preceding quarter, while cost of revenue rose only modestly. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, but gross profit edged higher and gross margin improved.

  • The drop in cost of revenue relative to revenue from the prior year quarter was the most prominent observable factor supporting gross margin expansion.
  • Compared to the immediately preceding quarter, gross margin improved as revenue increased faster than cost of revenue. Versus the same quarter last year, gross margin also strengthened due to a larger decline in cost of revenue relative to revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

61.3%

Gross profit

$560.8M

Revenue

$915.4M

Cost of revenue

$354.6M

Quarter-over-quarter change

n/a

Year-over-year change

+6.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$915.4M$560.8M$354.6M61.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Apr 1, 2022

+6.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The drop in cost of revenue relative to revenue from the prior year quarter was the most prominent observable factor supporting gross margin expansion.

Compared to the immediately preceding quarter, gross margin improved as revenue increased faster than cost of revenue. Versus the same quarter last year, gross margin also strengthened due to a larger decline in cost of revenue relative to revenue.

Monitor whether cost of revenue trends persist in subsequent quarters, as it was the key factor in margin movement this period.