Applied Digital Corporation stock research
FY2023 Q4
Applied Digital (APLD) Gross Margin — Quarter Ended May 31, 2023
Revenue and gross profit were higher than both the prior quarter and the same quarter last year. Gross margin also improved in both comparisons, with cost of revenue increasing less than revenue.
Gross margin takeaway
Quarter ended May 31, 2023 · FY2023 Q4
Revenue and gross profit were higher than both the prior quarter and the same quarter last year. Gross margin also improved in both comparisons, with cost of revenue increasing less than revenue.
- Gross margin showed improvement in both sequential and year-over-year comparisons, indicating a higher proportion of revenue retained after cost of revenue.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue all increased, with gross margin improving. Compared to the same quarter a year ago, gross margin was higher, supported by a larger increase in revenue relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.6%
Gross profit
$6.1M
Revenue
$22.0M
Cost of revenue
$15.9M
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+26.4 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% |
| May 31, 2023 | $22.0M | $6.1M | $15.9M | 27.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2023
+2.4 pts
Year-over-year change
May 31, 2022
+26.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin showed improvement in both sequential and year-over-year comparisons, indicating a higher proportion of revenue retained after cost of revenue.
Compared to the prior quarter, revenue, gross profit, and cost of revenue all increased, with gross margin improving. Compared to the same quarter a year ago, gross margin was higher, supported by a larger increase in revenue relative to cost of revenue.
Monitor the relationship between cost of revenue and revenue, as the current quarter's gross margin improvement coincided with proportionally lower cost growth.