Block, Inc. stock research
FY2024 Q4
Block (XYZ) Gross Margin — Quarter Ended Dec 31, 2024
For the quarter ended December 31, 2024, revenue and cost of revenue were stable compared to the prior quarter, while gross profit increased and gross margin improved. Compared to the same quarter a year ago, both revenue and gross profit were higher, cost of revenue was unchanged, and gross margin strengthened.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
For the quarter ended December 31, 2024, revenue and cost of revenue were stable compared to the prior quarter, while gross profit increased and gross margin improved. Compared to the same quarter a year ago, both revenue and gross profit were higher, cost of revenue was unchanged, and gross margin strengthened.
- Gross margin improved relative to both the preceding quarter and the year-ago quarter, driven by a higher gross profit on stable cost of revenue. The improvement in gross profit outpaced any change in revenue, reflecting a more efficient conversion of revenue into profit.
- Compared to the immediately preceding quarter, revenue was flat, cost of revenue was flat, gross profit increased, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, cost of revenue was flat, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.3%
Gross profit
$2.3B
Revenue
$6.0B
Cost of revenue
$3.7B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+3.2 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, 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% |
| Dec 31, 2024 | $6.0B | $2.3B | $3.7B | 38.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.7 pts
Year-over-year change
Dec 31, 2023
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved relative to both the preceding quarter and the year-ago quarter, driven by a higher gross profit on stable cost of revenue. The improvement in gross profit outpaced any change in revenue, reflecting a more efficient conversion of revenue into profit.
Compared to the immediately preceding quarter, revenue was flat, cost of revenue was flat, gross profit increased, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, cost of revenue was flat, and gross margin strengthened.
Monitor the sustainability of gross profit growth as revenue stabilized and cost of revenue remained unchanged in the current quarter.