Tyler Technologies, Inc. stock research
FY2024 Q1
Tyler Technologies (TYL) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit increased compared to both the previous quarter and the same quarter one year earlier. Gross margin weakened slightly from the prior quarter but improved compared to the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit increased compared to both the previous quarter and the same quarter one year earlier. Gross margin weakened slightly from the prior quarter but improved compared to the year-ago period.
- The year-over-year improvement in gross margin was the most notable change, with gross profit growing faster than revenue relative to the same quarter last year.
- Sequentially, gross margin was lower, as cost of revenue increased at a faster pace than revenue. Compared to the same quarter a year ago, gross margin was higher, reflecting a stronger relationship between gross profit and revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.7%
Gross profit
$223.7M
Revenue
$512.4M
Cost of revenue
$288.7M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+1.3 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $504.3M | $223.2M | $281.1M | 44.3% |
| Sep 30, 2023 | $494.7M | $225.2M | $269.5M | 45.5% |
| Dec 31, 2023 | $480.9M | $212.9M | $268.0M | 44.3% |
| Mar 31, 2024 | $512.4M | $223.7M | $288.7M | 43.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.6 pts
Year-over-year change
Mar 31, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was the most notable change, with gross profit growing faster than revenue relative to the same quarter last year.
Sequentially, gross margin was lower, as cost of revenue increased at a faster pace than revenue. Compared to the same quarter a year ago, gross margin was higher, reflecting a stronger relationship between gross profit and revenue.
Monitor the trend in cost of revenue relative to revenue, as the sequential quarter showed a slight margin compression.