Tyler Technologies, Inc. stock research
FY2023 Q1
Tyler Technologies (TYL) Gross Margin — Quarter Ended Mar 31, 2023
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago period.
- The sequential change in gross margin was driven by cost of revenue increasing at a faster rate than revenue, while the year-over-year improvement reflected cost of revenue growing at a slower rate than revenue.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter last year, 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
42.4%
Gross profit
$199.8M
Revenue
$471.9M
Cost of revenue
$272.0M
Quarter-over-quarter change
n/a
Year-over-year change
+0.2 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 | $471.9M | $199.8M | $272.0M | 42.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential change in gross margin was driven by cost of revenue increasing at a faster rate than revenue, while the year-over-year improvement reflected cost of revenue growing at a slower rate than revenue.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the composition of revenue among subscription, transaction, and professional services as described in the filing context, given its potential influence on gross margin trends.