TR

Trimble Inc. stock research

Jun 30, 2023

FY2023 Q2

Trimble (TRMB) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved year-over-year but weakened slightly from the preceding quarter.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved year-over-year but weakened slightly from the preceding quarter.

  • The year-over-year improvement in gross margin was accompanied by a lower cost of revenue despite higher revenue, while the sequential decline reflected a proportionally larger increase in cost of revenue relative to revenue.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.

Gross margin snapshot

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

Gross margin

60.8%

Gross profit

$604.5M

Revenue

$993.6M

Cost of revenue

$389.1M

Quarter-over-quarter change

-0.4 pts

Year-over-year change

+3.7 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%
Jun 30, 2023$993.6M$604.5M$389.1M60.8%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

-0.4 pts

Year-over-year change

Jul 1, 2022

+3.7 pts

What the margin says

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

The year-over-year improvement in gross margin was accompanied by a lower cost of revenue despite higher revenue, while the sequential decline reflected a proportionally larger increase in cost of revenue relative to revenue.

Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.

Monitor the trend in cost of revenue relative to revenue, as it was the primary factor in the sequential margin change.