BB

BigBear.ai Holdings, Inc. stock research

Jun 30, 2024

FY2024 Q2

BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Jun 30, 2024

In the current quarter, revenue increased compared to both the prior quarter and the same quarter a year ago, while cost of revenue was lower than the year-ago period. Gross profit grew at a faster rate than revenue, resulting in a higher gross margin than both comparison periods.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

In the current quarter, revenue increased compared to both the prior quarter and the same quarter a year ago, while cost of revenue was lower than the year-ago period. Gross profit grew at a faster rate than revenue, resulting in a higher gross margin than both comparison periods.

  • The primary observable driver of margin improvement was the combination of revenue growth and a relatively smaller increase in cost of revenue versus the prior quarter, and a decrease in cost of revenue year-over-year.
  • Gross margin was higher than the immediately preceding quarter and also higher than the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

27.8%

Gross profit

$11.1M

Revenue

$39.8M

Cost of revenue

$28.7M

Quarter-over-quarter change

+6.7 pts

Year-over-year change

+4.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$38.5M$9.0M$29.5M23.3%
Sep 30, 2023$34.0M$8.4M$25.6M24.7%
Mar 31, 2024$33.1M$7.0M$26.1M21.1%
Jun 30, 2024$39.8M$11.1M$28.7M27.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+6.7 pts

Year-over-year change

Jun 30, 2023

+4.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary observable driver of margin improvement was the combination of revenue growth and a relatively smaller increase in cost of revenue versus the prior quarter, and a decrease in cost of revenue year-over-year.

Gross margin was higher than the immediately preceding quarter and also higher than the same quarter one year earlier.

Monitor the trend in cost of revenue relative to revenue in future periods.

BBAI Gross Margin — Quarter Ended Jun 30, 2024