Block, Inc. stock research
FY2023 Q1
Block (XYZ) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and cost of revenue both increased compared to the prior quarter, while gross profit remained stable, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue all rose, and gross margin improved.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and cost of revenue both increased compared to the prior quarter, while gross profit remained stable, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue all rose, and gross margin improved.
- The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew faster than cost of revenue compared to the year-ago quarter, supporting margin expansion.
- Gross margin weakened slightly from the immediately preceding quarter but improved compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.4%
Gross profit
$1.7B
Revenue
$5.0B
Cost of revenue
$3.3B
Quarter-over-quarter change
n/a
Year-over-year change
+1.7 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 | $5.0B | $1.7B | $3.3B | 34.4% |
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
+1.7 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; revenue grew faster than cost of revenue compared to the year-ago quarter, supporting margin expansion.
Gross margin weakened slightly from the immediately preceding quarter but improved compared to the same quarter one year earlier.
Monitor the trend in cost of revenue relative to revenue, as its growth rate may influence future gross margin stability.