BigBear.ai Holdings, Inc. stock research
FY2024 Q1
BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened from the prior quarter but improved relative to the same quarter a year ago.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened from the prior quarter but improved relative to the same quarter a year ago.
- The improvement in gross margin compared to the same quarter last year was driven by a proportionally larger decline in cost of revenue relative to revenue. This suggests a shift in the relationship between revenue and associated costs.
- Compared to the prior quarter, gross margin weakened as revenue fell more sharply than cost of revenue. Versus the same quarter a year ago, gross margin improved despite lower revenue, as cost of revenue decreased at a faster rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.1%
Gross profit
$7.0M
Revenue
$33.1M
Cost of revenue
$26.1M
Quarter-over-quarter change
-3.6 pts
Year-over-year change
-3.1 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% |
| Mar 31, 2024 | $33.1M | $7.0M | $26.1M | 21.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-3.6 pts
Year-over-year change
Mar 31, 2023
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin compared to the same quarter last year was driven by a proportionally larger decline in cost of revenue relative to revenue. This suggests a shift in the relationship between revenue and associated costs.
Compared to the prior quarter, gross margin weakened as revenue fell more sharply than cost of revenue. Versus the same quarter a year ago, gross margin improved despite lower revenue, as cost of revenue decreased at a faster rate.
Monitor the trend in cost of revenue relative to revenue, as its proportion has been a key factor in gross margin changes.