Block, Inc. stock research
FY2023 Q4
Block (XYZ) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to both the prior quarter and the same quarter a year earlier, while gross profit also rose. Cost of revenue was unchanged sequentially but higher year-over-year, resulting in a gross margin that improved from the prior quarter but was slightly lower than a year ago.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter a year earlier, while gross profit also rose. Cost of revenue was unchanged sequentially but higher year-over-year, resulting in a gross margin that improved from the prior quarter but was slightly lower than a year ago.
- The strongest observable margin driver is the relationship between the growth rates of revenue and cost of revenue. Sequentially, cost of revenue remained flat while revenue grew, supporting margin expansion. Year-over-year, cost of revenue grew faster than revenue, leading to a slight margin contraction.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened slightly, resulting in a mixed overall comparison.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.1%
Gross profit
$2.0B
Revenue
$5.8B
Cost of revenue
$3.7B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
-0.6 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% |
| Jun 30, 2023 | $5.5B | $1.9B | $3.7B | 33.7% |
| Sep 30, 2023 | $5.6B | $1.9B | $3.7B | 33.8% |
| Dec 31, 2023 | $5.8B | $2.0B | $3.7B | 35.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.3 pts
Year-over-year change
Dec 31, 2022
-0.6 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 the growth rates of revenue and cost of revenue. Sequentially, cost of revenue remained flat while revenue grew, supporting margin expansion. Year-over-year, cost of revenue grew faster than revenue, leading to a slight margin contraction.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened slightly, resulting in a mixed overall comparison.
Monitor the trend in cost of revenue relative to revenue, as changes in this relationship have directly influenced gross margin movements.