Applied Digital Corporation stock research
FY2023 Q3
Applied Digital (APLD) Gross Margin — Quarter Ended Feb 28, 2023
Revenue and gross profit increased compared to both the preceding quarter and the same quarter one year earlier. Cost of revenue was lower than the preceding quarter but higher than the year-ago quarter, resulting in a gross margin that improved from negative to positive year-over-year and strengthened sequentially.
Gross margin takeaway
Quarter ended Feb 28, 2023 · FY2023 Q3
Revenue and gross profit increased compared to both the preceding quarter and the same quarter one year earlier. Cost of revenue was lower than the preceding quarter but higher than the year-ago quarter, resulting in a gross margin that improved from negative to positive year-over-year and strengthened sequentially.
- The strongest observable driver is the combination of higher revenue and lower cost of revenue relative to the preceding quarter, which together lifted gross profit and margin.
- Compared to the preceding quarter, revenue was higher and cost of revenue was lower, leading to a substantially higher gross profit and gross margin. Compared to the same quarter one year earlier, revenue was significantly higher and cost of revenue was higher, but gross profit turned positive from a loss, resulting in a much improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.2%
Gross profit
$3.6M
Revenue
$14.1M
Cost of revenue
$10.5M
Quarter-over-quarter change
n/a
Year-over-year change
+127.3 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 |
|---|---|---|---|---|
| Feb 28, 2023 | $14.1M | $3.6M | $10.5M | 25.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Feb 28, 2022
+127.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the combination of higher revenue and lower cost of revenue relative to the preceding quarter, which together lifted gross profit and margin.
Compared to the preceding quarter, revenue was higher and cost of revenue was lower, leading to a substantially higher gross profit and gross margin. Compared to the same quarter one year earlier, revenue was significantly higher and cost of revenue was higher, but gross profit turned positive from a loss, resulting in a much improved gross margin.
Monitor the relationship between revenue growth and cost of revenue changes to assess whether the margin improvement can be sustained.