Trimble Inc. stock research
FY2023 Q3
Trimble (TRMB) Gross Margin — Quarter Ended Sep 29, 2023
In the current quarter, revenue less cost of revenue yielded gross profit, and gross profit as a share of revenue defined the gross margin. Compared to the prior quarter, revenue was lower and gross profit was slightly lower, but cost of revenue decreased more, resulting in an improved gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, while cost of revenue was slightly lower, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2023 Q3
In the current quarter, revenue less cost of revenue yielded gross profit, and gross profit as a share of revenue defined the gross margin. Compared to the prior quarter, revenue was lower and gross profit was slightly lower, but cost of revenue decreased more, resulting in an improved gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, while cost of revenue was slightly lower, leading to a higher gross margin.
- The most observable change among the margin components was the relationship between cost of revenue and revenue. Cost of revenue as a proportion of total revenue was lower than in both the prior quarter and the year-ago quarter, coinciding with the higher gross margin.
- Sequentially, revenue declined and gross profit declined slightly, but cost of revenue fell more sharply, so gross margin improved. Year-over-year, revenue and gross profit both increased, cost of revenue decreased modestly, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.7%
Gross profit
$590.2M
Revenue
$957.3M
Cost of revenue
$367.1M
Quarter-over-quarter change
+0.8 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $915.4M | $560.8M | $354.6M | 61.3% |
| Jun 30, 2023 | $993.6M | $604.5M | $389.1M | 60.8% |
| Sep 29, 2023 | $957.3M | $590.2M | $367.1M | 61.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.8 pts
Year-over-year change
Sep 30, 2022
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable change among the margin components was the relationship between cost of revenue and revenue. Cost of revenue as a proportion of total revenue was lower than in both the prior quarter and the year-ago quarter, coinciding with the higher gross margin.
Sequentially, revenue declined and gross profit declined slightly, but cost of revenue fell more sharply, so gross margin improved. Year-over-year, revenue and gross profit both increased, cost of revenue decreased modestly, and gross margin also improved.
Monitor the trend of cost of revenue relative to revenue in upcoming quarters, as it has been a key factor in the recent margin improvement.