Applied Digital Corporation stock research
FY2025 Q1
Applied Digital (APLD) Gross Margin — Quarter Ended Aug 31, 2024
For the quarter, gross profit increased alongside revenue, but cost of revenue rose more sharply, resulting in a lower gross margin compared to the prior quarter. Versus the same quarter last year, revenue was slightly lower while gross profit was slightly higher and cost of revenue was lower, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Aug 31, 2024 · FY2025 Q1
For the quarter, gross profit increased alongside revenue, but cost of revenue rose more sharply, resulting in a lower gross margin compared to the prior quarter. Versus the same quarter last year, revenue was slightly lower while gross profit was slightly higher and cost of revenue was lower, leading to an improved gross margin.
- The gross margin was strongly influenced by the relationship between cost of revenue and revenue: cost of revenue increased more than revenue from the prior quarter, but decreased relative to revenue from the same quarter last year.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin was lower. Compared to the same quarter one year earlier, revenue was slightly lower, gross profit was slightly higher, cost of revenue was lower, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.7%
Gross profit
$12.1M
Revenue
$34.8M
Cost of revenue
$22.7M
Quarter-over-quarter change
-34.0 pts
Year-over-year change
+4.2 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 |
|---|---|---|---|---|
| Nov 30, 2023 | $42.2M | $12.4M | $29.8M | 29.5% |
| Feb 29, 2024 | $43.3M | -$3.7M | $47.1M | -8.6% |
| May 31, 2024 | $14.7M | $10.1M | $4.6M | 68.8% |
| Aug 31, 2024 | $34.8M | $12.1M | $22.7M | 34.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2024
-34.0 pts
Year-over-year change
Aug 31, 2023
+4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was strongly influenced by the relationship between cost of revenue and revenue: cost of revenue increased more than revenue from the prior quarter, but decreased relative to revenue from the same quarter last year.
Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin was lower. Compared to the same quarter one year earlier, revenue was slightly lower, gross profit was slightly higher, cost of revenue was lower, and gross margin was higher.
Monitor the ratio of cost of revenue to revenue, as its change had a significant impact on gross margin this quarter.