Block, Inc. stock research
FY2024 Q1
Block (XYZ) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from a year ago.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from a year ago.
- Gross profit grew faster than cost of revenue relative to the prior quarter, leading to the marginal gross margin strengthening. The year-over-year comparison shows a more pronounced expansion in gross profit relative to the increase in cost of revenue.
- From the preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improving modestly. Compared to the same quarter last year, all three metrics were higher and gross margin strengthened more noticeably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.2%
Gross profit
$2.1B
Revenue
$6.0B
Cost of revenue
$3.9B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $6.0B | $2.1B | $3.9B | 35.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.1 pts
Year-over-year change
Mar 31, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than cost of revenue relative to the prior quarter, leading to the marginal gross margin strengthening. The year-over-year comparison shows a more pronounced expansion in gross profit relative to the increase in cost of revenue.
From the preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improving modestly. Compared to the same quarter last year, all three metrics were higher and gross margin strengthened more noticeably.
Monitor the trajectory of cost of revenue relative to revenue, as gross margin improvement depends on continued disciplined cost management.