Zebra Technologies Corporation stock research
FY2023 Q4
Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter one year earlier.
- The relationship between revenue and cost of revenue drove the gross margin change. Revenue grew at a slower pace than cost of revenue compared to the prior quarter, leading to a slight margin decline.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter last year, revenue, gross profit, and gross margin were all lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.4%
Gross profit
$448.0M
Revenue
$1.0B
Cost of revenue
$561.0M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-1.2 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $1.4B | $667.0M | $738.0M | 47.5% |
| Jul 1, 2023 | $1.2B | $581.0M | $633.0M | 47.9% |
| Sep 30, 2023 | $956.0M | $427.0M | $529.0M | 44.7% |
| Dec 31, 2023 | $1.0B | $448.0M | $561.0M | 44.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.3 pts
Year-over-year change
Dec 31, 2022
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin change. Revenue grew at a slower pace than cost of revenue compared to the prior quarter, leading to a slight margin decline.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter last year, revenue, gross profit, and gross margin were all lower.
Monitor the trend in cost of revenue relative to revenue, as its faster growth in the current quarter contributed to margin compression.