Trimble Inc. stock research
FY2024 Q2
Trimble (TRMB) Gross Margin — Quarter Ended Jun 28, 2024
Revenue and gross profit were lower than the prior quarter and the year-ago period, while cost of revenue also declined. The gross margin improved, reflecting a larger proportional reduction in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2024 Q2
Revenue and gross profit were lower than the prior quarter and the year-ago period, while cost of revenue also declined. The gross margin improved, reflecting a larger proportional reduction in cost of revenue relative to revenue.
- The strongest observable margin driver is the reduction in cost of revenue as a proportion of revenue. Cost of revenue declined more than revenue, leading to an expanded gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, while gross margin was higher. Versus the same quarter one year earlier, the same directional changes occurred: revenue, gross profit, and cost of revenue decreased, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.7%
Gross profit
$545.9M
Revenue
$870.8M
Cost of revenue
$324.9M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| Sep 29, 2023 | $957.3M | $590.2M | $367.1M | 61.7% |
| Dec 29, 2023 | $932.4M | $577.3M | $355.1M | 61.9% |
| Mar 29, 2024 | $953.3M | $593.6M | $359.7M | 62.3% |
| Jun 28, 2024 | $870.8M | $545.9M | $324.9M | 62.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
+0.4 pts
Year-over-year change
Jun 30, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue as a proportion of revenue. Cost of revenue declined more than revenue, leading to an expanded gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, while gross margin was higher. Versus the same quarter one year earlier, the same directional changes occurred: revenue, gross profit, and cost of revenue decreased, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as the filing discusses the Ag divestiture's impact on operating income, which may influence future margin trends.