BM

Bitmine Immersion Technologies, Inc. stock research

Nov 30, 2023

FY2024 Q1

Bitmine Immersion Technologies (BMNR) Gross Margin — Quarter Ended Nov 30, 2023

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit improved from a loss a year ago to a profit, but declined slightly from the prior quarter, resulting in a gross margin that was higher year-over-year but lower sequentially.

Gross margin takeaway

Quarter ended Nov 30, 2023 · FY2024 Q1

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit improved from a loss a year ago to a profit, but declined slightly from the prior quarter, resulting in a gross margin that was higher year-over-year but lower sequentially.

  • The strongest observable driver is the change in cost of revenue relative to revenue. While revenue grew substantially from the prior quarter, cost of revenue increased at a higher rate, compressing gross margin.
  • Compared to the prior quarter, gross margin weakened from a higher level to a lower level. Compared to the same quarter last year, gross margin improved from negative to positive.

Gross margin snapshot

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

Gross margin

20.4%

Gross profit

$104082

Revenue

$511308

Cost of revenue

$407226

Quarter-over-quarter change

-24.0 pts

Year-over-year change

+36.8 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%
May 31, 2023$142126$69734$7239249.1%
Aug 31, 2023$245346$108861$13648544.4%
Nov 30, 2023$511308$104082$40722620.4%

Quarterly comparisons

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

Previous-quarter change

Aug 31, 2023

-24.0 pts

Year-over-year change

Nov 30, 2022

+36.8 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. While revenue grew substantially from the prior quarter, cost of revenue increased at a higher rate, compressing gross margin.

Compared to the prior quarter, gross margin weakened from a higher level to a lower level. Compared to the same quarter last year, gross margin improved from negative to positive.

Monitor the relationship between cost of revenue and revenue growth, as the sequential increase in cost outpaced revenue.