Applied Digital Corporation stock research
FY2024 Q2
Applied Digital (APLD) Gross Margin — Quarter Ended Nov 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue increased as well, resulting in a gross margin that was higher than a year ago but slightly lower than the previous quarter.
Gross margin takeaway
Quarter ended Nov 30, 2023 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue increased as well, resulting in a gross margin that was higher than a year ago but slightly lower than the previous quarter.
- The most significant change is the year-over-year improvement in gross margin, which reflects a larger increase in revenue relative to the increase in cost of revenue.
- Compared to the immediately preceding quarter, gross margin weakened marginally. Compared to the same quarter one year earlier, gross margin improved substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.5%
Gross profit
$12.4M
Revenue
$42.2M
Cost of revenue
$29.8M
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+25.2 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 |
|---|---|---|---|---|
| Feb 28, 2023 | $14.1M | $3.6M | $10.5M | 25.2% |
| May 31, 2023 | $22.0M | $6.1M | $15.9M | 27.6% |
| Aug 31, 2023 | $36.3M | $11.1M | $25.2M | 30.6% |
| Nov 30, 2023 | $42.2M | $12.4M | $29.8M | 29.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2023
-1.1 pts
Year-over-year change
Nov 30, 2022
+25.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant change is the year-over-year improvement in gross margin, which reflects a larger increase in revenue relative to the increase in cost of revenue.
Compared to the immediately preceding quarter, gross margin weakened marginally. Compared to the same quarter one year earlier, gross margin improved substantially.
Monitor whether the gross margin can stabilize or improve as revenue continues to grow.