TR

Trimble Inc. stock research

Sep 27, 2024

FY2024 Q3

Trimble (TRMB) Gross Margin — Quarter Ended Sep 27, 2024

Revenue for the quarter was slightly higher than the prior quarter but lower than a year ago. Gross profit rose compared to the prior quarter while declining versus the same quarter last year, and cost of revenue was lower in both comparisons, leading to an improved gross margin.

Gross margin takeaway

Quarter ended Sep 27, 2024 · FY2024 Q3

Revenue for the quarter was slightly higher than the prior quarter but lower than a year ago. Gross profit rose compared to the prior quarter while declining versus the same quarter last year, and cost of revenue was lower in both comparisons, leading to an improved gross margin.

  • The gross margin improved sequentially and year-over-year, primarily because cost of revenue declined at a faster rate than revenue in both comparisons.
  • Compared to the prior quarter, revenue increased and cost of revenue decreased, resulting in a higher gross profit and an improved gross margin. Versus the same quarter last year, revenue and gross profit were lower, but cost of revenue was also lower, leading to a higher gross margin.

Gross margin snapshot

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

Gross margin

65.7%

Gross profit

$575.6M

Revenue

$875.8M

Cost of revenue

$300.2M

Quarter-over-quarter change

+3.0 pts

Year-over-year change

+4.1 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 29, 2023$932.4M$577.3M$355.1M61.9%
Mar 29, 2024$953.3M$593.6M$359.7M62.3%
Jun 28, 2024$870.8M$545.9M$324.9M62.7%
Sep 27, 2024$875.8M$575.6M$300.2M65.7%

Quarterly comparisons

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

Previous-quarter change

Jun 28, 2024

+3.0 pts

Year-over-year change

Sep 29, 2023

+4.1 pts

What the margin says

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

The gross margin improved sequentially and year-over-year, primarily because cost of revenue declined at a faster rate than revenue in both comparisons.

Compared to the prior quarter, revenue increased and cost of revenue decreased, resulting in a higher gross profit and an improved gross margin. Versus the same quarter last year, revenue and gross profit were lower, but cost of revenue was also lower, leading to a higher gross margin.

Monitor whether the trend of declining cost of revenue can sustain relative to revenue changes, as it directly influences gross margin stability.