BigBear.ai Holdings, Inc. stock research
FY2023 Q3
BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter a year ago, while cost of revenue also declined from the prior quarter but was lower than the year-ago period. Gross margin improved sequentially but weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both decreased compared to the prior quarter and the same quarter a year ago, while cost of revenue also declined from the prior quarter but was lower than the year-ago period. Gross margin improved sequentially but weakened relative to the same quarter last year.
- Gross margin improved sequentially as cost of revenue declined at a faster pace than revenue, resulting in a higher gross margin rate. The year-over-year comparison shows a lower gross margin rate, driven by a sharper decrease in gross profit relative to revenue.
- Compared to the prior quarter, gross margin increased marginally from below to above the current quarter's level. Relative to the same quarter a year ago, gross margin was notably lower, reflecting a weakened profitability rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.7%
Gross profit
$8.4M
Revenue
$34.0M
Cost of revenue
$25.6M
Quarter-over-quarter change
+1.4 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $42.2M | $10.2M | $31.9M | 24.2% |
| Jun 30, 2023 | $38.5M | $9.0M | $29.5M | 23.3% |
| Sep 30, 2023 | $34.0M | $8.4M | $25.6M | 24.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.4 pts
Year-over-year change
Sep 30, 2022
-4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially as cost of revenue declined at a faster pace than revenue, resulting in a higher gross margin rate. The year-over-year comparison shows a lower gross margin rate, driven by a sharper decrease in gross profit relative to revenue.
Compared to the prior quarter, gross margin increased marginally from below to above the current quarter's level. Relative to the same quarter a year ago, gross margin was notably lower, reflecting a weakened profitability rate.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess the sustainability of the sequential gross margin improvement.