ZB

Zebra Technologies Corporation stock research

Jun 29, 2024

FY2024 Q2

Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Jun 29, 2024

Revenue was stable while gross profit rose and cost of revenue also increased, resulting in a higher gross margin. Compared with the prior quarter and the same quarter a year ago, gross margin improved from both periods.

Gross margin takeaway

Quarter ended Jun 29, 2024 · FY2024 Q2

Revenue was stable while gross profit rose and cost of revenue also increased, resulting in a higher gross margin. Compared with the prior quarter and the same quarter a year ago, gross margin improved from both periods.

  • The strongest observable margin driver was the faster growth in gross profit relative to the increase in cost of revenue, which lifted the margin.
  • Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier, as gross profit increased while revenue remained stable.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

48.4%

Gross profit

$589.0M

Revenue

$1.2B

Cost of revenue

$628.0M

Quarter-over-quarter change

+0.5 pts

Year-over-year change

+0.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$956.0M$427.0M$529.0M44.7%
Dec 31, 2023$1.0B$448.0M$561.0M44.4%
Mar 30, 2024$1.2B$563.0M$612.0M47.9%
Jun 29, 2024$1.2B$589.0M$628.0M48.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 30, 2024

+0.5 pts

Year-over-year change

Jul 1, 2023

+0.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver was the faster growth in gross profit relative to the increase in cost of revenue, which lifted the margin.

Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier, as gross profit increased while revenue remained stable.

Monitor the trajectory of cost of revenue, which increased from the prior quarter.