Tyler Technologies, Inc. stock research
FY2024 Q3
Tyler Technologies (TYL) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened modestly versus both periods, reflecting a slightly higher share of cost in revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened modestly versus both periods, reflecting a slightly higher share of cost in revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: although revenue grew, cost of revenue increased at a faster pace, compressing gross margin.
- Compared with the immediately preceding quarter, gross margin was lower; compared with the same quarter one year earlier, gross margin was also lower. Revenue, gross profit, and cost of revenue were all higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.7%
Gross profit
$237.5M
Revenue
$543.3M
Cost of revenue
$305.9M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-1.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $543.3M | $237.5M | $305.9M | 43.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.3 pts
Year-over-year change
Sep 30, 2023
-1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: although revenue grew, cost of revenue increased at a faster pace, compressing gross margin.
Compared with the immediately preceding quarter, gross margin was lower; compared with the same quarter one year earlier, gross margin was also lower. Revenue, gross profit, and cost of revenue were all higher in both comparisons.
Monitor whether the cost of revenue continues to grow at a pace that outpaces revenue growth in upcoming quarters.