BM

Bitmine Immersion Technologies, Inc. stock research

Feb 28, 2023

FY2023 Q2

Bitmine Immersion Technologies (BMNR) Gross Margin — Quarter Ended Feb 28, 2023

Revenue increased from the prior quarter, and gross profit turned positive as cost of revenue declined. Compared to the same quarter a year earlier, revenue was lower but gross margin improved, reflecting a change in the relationship between revenue and cost.

Gross margin takeaway

Quarter ended Feb 28, 2023 · FY2023 Q2

Revenue increased from the prior quarter, and gross profit turned positive as cost of revenue declined. Compared to the same quarter a year earlier, revenue was lower but gross margin improved, reflecting a change in the relationship between revenue and cost.

  • The strongest observable margin driver is the shift in the cost of revenue relative to revenue. In the prior quarter, cost of revenue exceeded revenue, resulting in a negative gross margin; in the current quarter, cost of revenue decreased while revenue increased, producing a positive gross margin.
  • Compared to the immediately preceding quarter, gross margin improved from negative to positive. Compared to the same quarter one year earlier, gross margin was higher despite lower revenue.

Gross margin snapshot

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

Gross margin

38.8%

Gross profit

$60633

Revenue

$156090

Cost of revenue

$95457

Quarter-over-quarter change

n/a

Year-over-year change

+5.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Feb 28, 2023$156090$60633$9545738.8%

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

Feb 28, 2022

+5.3 pts

What the margin says

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

The strongest observable margin driver is the shift in the cost of revenue relative to revenue. In the prior quarter, cost of revenue exceeded revenue, resulting in a negative gross margin; in the current quarter, cost of revenue decreased while revenue increased, producing a positive gross margin.

Compared to the immediately preceding quarter, gross margin improved from negative to positive. Compared to the same quarter one year earlier, gross margin was higher despite lower revenue.

Monitor the trend in cost of revenue, as it is a critical factor in sustaining the positive gross margin. The filing also notes increased cash used in operations, which may affect liquidity.