Block, Inc. stock research
FY2024 Q2
Block (XYZ) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased while cost of revenue grew at a slower pace, resulting in higher gross profit and an improved gross margin. Compared with the prior quarter and the same quarter last year, gross margin strengthened.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue increased while cost of revenue grew at a slower pace, resulting in higher gross profit and an improved gross margin. Compared with the prior quarter and the same quarter last year, gross margin strengthened.
- The most observable driver of the margin improvement is the relationship between revenue growth and cost of revenue growth, with revenue increasing more than cost of revenue.
- Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier, reflecting a consistent upward trend.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.3%
Gross profit
$2.2B
Revenue
$6.2B
Cost of revenue
$3.9B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+2.6 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $6.2B | $2.2B | $3.9B | 36.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.1 pts
Year-over-year change
Jun 30, 2023
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the margin improvement is the relationship between revenue growth and cost of revenue growth, with revenue increasing more than cost of revenue.
Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier, reflecting a consistent upward trend.
Monitor the trend of cost of revenue relative to revenue, as any shift could influence future gross margin.