BigBear.ai Holdings, Inc. stock research
FY2023 Q1
BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit rose year over year but fell sequentially. The gross margin weakened from the preceding quarter and also declined relative to the year-ago period, as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit rose year over year but fell sequentially. The gross margin weakened from the preceding quarter and also declined relative to the year-ago period, as cost of revenue grew at a faster pace than revenue.
- The gross margin decline was driven by a larger increase in cost of revenue relative to revenue when compared with both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, both revenue and gross profit were higher, yet gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.2%
Gross profit
$10.2M
Revenue
$42.2M
Cost of revenue
$31.9M
Quarter-over-quarter change
n/a
Year-over-year change
-2.9 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $42.2M | $10.2M | $31.9M | 24.2% |
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
Mar 31, 2022
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by a larger increase in cost of revenue relative to revenue when compared with both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, both revenue and gross profit were higher, yet gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has compressed gross margin in the current quarter.