Tyler Technologies, Inc. stock research
FY2024 Q2
Tyler Technologies (TYL) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was higher than both the prior quarter and the same quarter last year. Gross profit also increased, but cost of revenue rose at a different pace, resulting in gross margin that improved slightly from the prior quarter but weakened compared to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was higher than both the prior quarter and the same quarter last year. Gross profit also increased, but cost of revenue rose at a different pace, resulting in gross margin that improved slightly from the prior quarter but weakened compared to the year-ago period.
- The sequential improvement in gross margin was the strongest driver, as cost of revenue increased more slowly than revenue compared to the prior quarter. In contrast, the year-over-year decline reflects a faster rise in cost of revenue relative to revenue over the longer period.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.0%
Gross profit
$237.8M
Revenue
$541.0M
Cost of revenue
$303.2M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $541.0M | $237.8M | $303.2M | 44.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.3 pts
Year-over-year change
Jun 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was the strongest driver, as cost of revenue increased more slowly than revenue compared to the prior quarter. In contrast, the year-over-year decline reflects a faster rise in cost of revenue relative to revenue over the longer period.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the trend of cost of revenue relative to revenue, given the year-over-year decline in gross margin.