Trimble Inc. stock research
FY2024 Q4
Trimble (TRMB) Gross Margin — Quarter Ended Jan 3, 2025
The current quarter's gross margin improved as revenue grew and cost of revenue declined compared to the year-ago period, allowing gross profit to expand at a faster rate. Relative to the prior quarter, revenue and gross profit both increased while cost of revenue remained nearly unchanged, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Jan 3, 2025 · FY2024 Q4
The current quarter's gross margin improved as revenue grew and cost of revenue declined compared to the year-ago period, allowing gross profit to expand at a faster rate. Relative to the prior quarter, revenue and gross profit both increased while cost of revenue remained nearly unchanged, resulting in a higher gross margin.
- The primary observable driver of the margin improvement was the decline in cost of revenue compared to the same quarter last year, which increased the gross profit per dollar of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.3%
Gross profit
$681.2M
Revenue
$983.4M
Cost of revenue
$302.2M
Quarter-over-quarter change
+3.5 pts
Year-over-year change
+7.4 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 29, 2024 | $953.3M | $593.6M | $359.7M | 62.3% |
| Jun 28, 2024 | $870.8M | $545.9M | $324.9M | 62.7% |
| Sep 27, 2024 | $875.8M | $575.6M | $300.2M | 65.7% |
| Jan 3, 2025 | $983.4M | $681.2M | $302.2M | 69.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2024
+3.5 pts
Year-over-year change
Dec 29, 2023
+7.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin improvement was the decline in cost of revenue compared to the same quarter last year, which increased the gross profit per dollar of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower.
Monitor the impact of the additional week in the current quarter on accounts receivable and operating cash flow, as noted in the filing.