BM

Bitmine Immersion Technologies, Inc. stock research

Aug 31, 2024

FY2024 Q4

Bitmine Immersion Technologies (BMNR) Gross Margin — Quarter Ended Aug 31, 2024

Revenue, gross profit, and cost of revenue all moved in the same direction compared with the prior quarter, with gross profit increasing less than cost of revenue, resulting in a lower gross margin. Compared with the same quarter one year ago, revenue and cost of revenue were substantially higher, while gross profit was only slightly higher, causing gross margin to weaken significantly.

Gross margin takeaway

Quarter ended Aug 31, 2024 · FY2024 Q4

Revenue, gross profit, and cost of revenue all moved in the same direction compared with the prior quarter, with gross profit increasing less than cost of revenue, resulting in a lower gross margin. Compared with the same quarter one year ago, revenue and cost of revenue were substantially higher, while gross profit was only slightly higher, causing gross margin to weaken significantly.

  • The sequential decline in gross margin was driven by cost of revenue decreasing less than revenue, compressing profitability per dollar of sales.
  • Compared with the immediately preceding quarter, gross margin was lower as revenue fell while cost of revenue declined by a smaller proportion. Compared with the same quarter one year earlier, gross margin was substantially lower, reflecting revenue growth that was outpaced by an even larger increase in cost of revenue.

Gross margin snapshot

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

Gross margin

16.4%

Gross profit

$111636

Revenue

$682087

Cost of revenue

$570451

Quarter-over-quarter change

-1.7 pts

Year-over-year change

-28.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Nov 30, 2023$511308$104082$40722620.4%
Feb 29, 2024$891613$323622$56799136.3%
May 31, 2024$1.2M$221687$1.0M18.1%
Aug 31, 2024$682087$111636$57045116.4%

Quarterly comparisons

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

Previous-quarter change

May 31, 2024

-1.7 pts

Year-over-year change

Aug 31, 2023

-28.0 pts

What the margin says

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

The sequential decline in gross margin was driven by cost of revenue decreasing less than revenue, compressing profitability per dollar of sales.

Compared with the immediately preceding quarter, gross margin was lower as revenue fell while cost of revenue declined by a smaller proportion. Compared with the same quarter one year earlier, gross margin was substantially lower, reflecting revenue growth that was outpaced by an even larger increase in cost of revenue.

Monitor the trajectory of cost of revenue relative to revenue, as the gap between revenue growth and cost growth has widened year over year.