Tyler Technologies, Inc. stock research
FY2023 Q2
Tyler Technologies (TYL) Gross Margin — Quarter Ended Jun 30, 2023
Revenue, cost of revenue, and gross profit all increased for the quarter. Gross margin improved compared to the immediately preceding quarter and the same quarter one year earlier, reflecting a larger share of gross profit relative to revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue, cost of revenue, and gross profit all increased for the quarter. Gross margin improved compared to the immediately preceding quarter and the same quarter one year earlier, reflecting a larger share of gross profit relative to revenue.
- The improvement in gross margin was supported by a combination of higher revenue and a slower growth in cost of revenue relative to the sequential and year-ago comparisons. The strongest observable driver is the change in revenue, which outpaced the change in cost of revenue on both comparable bases.
- Revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier. Gross margin improved sequentially from the prior quarter and also improved compared to the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.3%
Gross profit
$223.2M
Revenue
$504.3M
Cost of revenue
$281.1M
Quarter-over-quarter change
+1.9 pts
Year-over-year change
+3.0 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% |
| Jun 30, 2023 | $504.3M | $223.2M | $281.1M | 44.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.9 pts
Year-over-year change
Jun 30, 2022
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was supported by a combination of higher revenue and a slower growth in cost of revenue relative to the sequential and year-ago comparisons. The strongest observable driver is the change in revenue, which outpaced the change in cost of revenue on both comparable bases.
Revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier. Gross margin improved sequentially from the prior quarter and also improved compared to the year-ago quarter.
Monitor the trend in cost of revenue relative to revenue, as the ratio between them directly influences future gross margin stability.