Crown Castle Inc. stock research
FY2023 Q4
Crown Castle (CCI) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue decreased at a slower rate, leading to a weakened gross margin. Relative to the same quarter last year, revenue was significantly lower, gross profit improved from a deep negative position, and gross margin recovered to a positive figure.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue decreased at a slower rate, leading to a weakened gross margin. Relative to the same quarter last year, revenue was significantly lower, gross profit improved from a deep negative position, and gross margin recovered to a positive figure.
- The gross margin decline from the prior quarter was driven by a proportionally larger drop in gross profit relative to revenue, as cost of revenue fell less sharply than revenue. No specific cause is assigned.
- Compared to the immediately preceding quarter, both revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, revenue was lower, gross profit improved substantially from a negative figure, and gross margin turned positive.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.3%
Gross profit
$7.0M
Revenue
$43.0M
Cost of revenue
$36.0M
Quarter-over-quarter change
-10.4 pts
Year-over-year change
+819.5 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $149.0M | $45.0M | $104.0M | 30.2% |
| Jun 30, 2023 | $139.0M | $41.0M | $98.0M | 29.5% |
| Sep 30, 2023 | $90.0M | $24.0M | $66.0M | 26.7% |
| Dec 31, 2023 | $43.0M | $7.0M | $36.0M | 16.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-10.4 pts
Year-over-year change
Dec 31, 2022
+819.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline from the prior quarter was driven by a proportionally larger drop in gross profit relative to revenue, as cost of revenue fell less sharply than revenue. No specific cause is assigned.
Compared to the immediately preceding quarter, both revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, revenue was lower, gross profit improved substantially from a negative figure, and gross margin turned positive.
Monitor the trajectory of revenue and cost of revenue relative changes, as the gap between their declines contributed to margin compression.