BigBear.ai Holdings, Inc. stock research
FY2024 Q3
BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased from both the prior quarter and the same quarter last year, while gross profit rose compared to last year but declined slightly from the prior quarter. Cost of revenue grew more than proportionally versus the prior quarter, causing gross margin to weaken sequentially, yet gross margin improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased from both the prior quarter and the same quarter last year, while gross profit rose compared to last year but declined slightly from the prior quarter. Cost of revenue grew more than proportionally versus the prior quarter, causing gross margin to weaken sequentially, yet gross margin improved compared to the same quarter last year.
- The strongest observable driver is the change in cost of revenue relative to revenue: cost grew faster than revenue from the previous quarter, compressing gross margin, but grew slower than revenue year-over-year, supporting margin expansion.
- Compared to the immediately preceding quarter, gross margin weakened as gross profit was slightly lower while revenue was higher, indicating a higher share of cost in revenue. Versus the same quarter one year earlier, gross margin improved as gross profit grew at a faster pace than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.9%
Gross profit
$10.8M
Revenue
$41.5M
Cost of revenue
$30.7M
Quarter-over-quarter change
-1.9 pts
Year-over-year change
+1.2 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $34.0M | $8.4M | $25.6M | 24.7% |
| Mar 31, 2024 | $33.1M | $7.0M | $26.1M | 21.1% |
| Jun 30, 2024 | $39.8M | $11.1M | $28.7M | 27.8% |
| Sep 30, 2024 | $41.5M | $10.8M | $30.7M | 25.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.9 pts
Year-over-year change
Sep 30, 2023
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue: cost grew faster than revenue from the previous quarter, compressing gross margin, but grew slower than revenue year-over-year, supporting margin expansion.
Compared to the immediately preceding quarter, gross margin weakened as gross profit was slightly lower while revenue was higher, indicating a higher share of cost in revenue. Versus the same quarter one year earlier, gross margin improved as gross profit grew at a faster pace than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as sequential margin compression suggests cost growth may outpace revenue growth if uncorrected.