Block, Inc. stock research
FY2024 Q3
Block (XYZ) Gross Margin — Quarter Ended Sep 30, 2024
Revenue declined from the prior quarter but grew from the same quarter last year. Gross profit remained stable sequentially and increased year over year, resulting in an improved gross margin compared to both periods.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue declined from the prior quarter but grew from the same quarter last year. Gross profit remained stable sequentially and increased year over year, resulting in an improved gross margin compared to both periods.
- The gross margin improvement was driven by cost of revenue decreasing more significantly than revenue on a sequential basis, while year over year, revenue growth outpaced a relatively stable cost of revenue.
- Compared to the previous quarter, revenue was lower, gross profit was flat, and gross margin was higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.6%
Gross profit
$2.2B
Revenue
$6.0B
Cost of revenue
$3.7B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+3.9 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 | $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% |
| Sep 30, 2024 | $6.0B | $2.2B | $3.7B | 37.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.4 pts
Year-over-year change
Sep 30, 2023
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by cost of revenue decreasing more significantly than revenue on a sequential basis, while year over year, revenue growth outpaced a relatively stable cost of revenue.
Compared to the previous quarter, revenue was lower, gross profit was flat, and gross margin was higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the relationship between cost of revenue and revenue trends to assess sustainability of margin expansion.