CC

Crown Castle Inc. stock research

Mar 31, 2024

FY2024 Q1

Crown Castle (CCI) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both rose compared to the prior quarter, while cost of revenue declined, resulting in a substantially stronger gross margin. Relative to the same quarter last year, revenue and gross profit were lower, and gross margin was higher as cost of revenue fell more sharply.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit both rose compared to the prior quarter, while cost of revenue declined, resulting in a substantially stronger gross margin. Relative to the same quarter last year, revenue and gross profit were lower, and gross margin was higher as cost of revenue fell more sharply.

  • The most observable margin driver this quarter was the reduction in cost of revenue, which enabled gross profit to improve even as revenue grew moderately.
  • Compared to the immediately preceding quarter, gross margin improved, revenue was higher, and cost of revenue was lower. Compared to the same quarter one year earlier, gross margin was higher, while both revenue and cost of revenue were lower.

Gross margin snapshot

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

Gross margin

37.0%

Gross profit

$17.0M

Revenue

$46.0M

Cost of revenue

$29.0M

Quarter-over-quarter change

+20.7 pts

Year-over-year change

+6.8 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$139.0M$41.0M$98.0M29.5%
Sep 30, 2023$90.0M$24.0M$66.0M26.7%
Dec 31, 2023$43.0M$7.0M$36.0M16.3%
Mar 31, 2024$46.0M$17.0M$29.0M37.0%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

+20.7 pts

Year-over-year change

Mar 31, 2023

+6.8 pts

What the margin says

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

The most observable margin driver this quarter was the reduction in cost of revenue, which enabled gross profit to improve even as revenue grew moderately.

Compared to the immediately preceding quarter, gross margin improved, revenue was higher, and cost of revenue was lower. Compared to the same quarter one year earlier, gross margin was higher, while both revenue and cost of revenue were lower.

Monitor the trajectory of cost of revenue, as its recent decline has been the primary factor behind margin changes.

CCI Gross Margin — Quarter Ended Mar 31, 2024