CC

Crown Castle Inc. stock research

Sep 30, 2024

FY2024 Q3

Crown Castle (CCI) Gross Margin — Quarter Ended Sep 30, 2024

For the current quarter, gross profit equaled cost of revenue, yielding a gross margin that was improved compared to both the prior quarter and the same quarter one year earlier. The margin improved from the prior quarter as revenue increased more than cost of revenue, and from the year-ago quarter as cost of revenue declined while revenue fell less sharply.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

For the current quarter, gross profit equaled cost of revenue, yielding a gross margin that was improved compared to both the prior quarter and the same quarter one year earlier. The margin improved from the prior quarter as revenue increased more than cost of revenue, and from the year-ago quarter as cost of revenue declined while revenue fell less sharply.

  • The strongest observable margin driver is the relative change in cost of revenue: it increased less than revenue quarter-over-quarter and decreased more than revenue year-over-year, directly supporting the margin expansion.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher and cost of revenue was slightly higher, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue was lower but gross profit was higher, while cost of revenue was significantly lower, leading to a marked improvement in gross margin.

Gross margin snapshot

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

Gross margin

50.0%

Gross profit

$27.0M

Revenue

$54.0M

Cost of revenue

$27.0M

Quarter-over-quarter change

+8.1 pts

Year-over-year change

+23.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$43.0M$7.0M$36.0M16.3%
Mar 31, 2024$46.0M$17.0M$29.0M37.0%
Jun 30, 2024$43.0M$18.0M$25.0M41.9%
Sep 30, 2024$54.0M$27.0M$27.0M50.0%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+8.1 pts

Year-over-year change

Sep 30, 2023

+23.3 pts

What the margin says

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

The strongest observable margin driver is the relative change in cost of revenue: it increased less than revenue quarter-over-quarter and decreased more than revenue year-over-year, directly supporting the margin expansion.

Compared to the immediately preceding quarter, revenue and gross profit were higher and cost of revenue was slightly higher, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue was lower but gross profit was higher, while cost of revenue was significantly lower, leading to a marked improvement in gross margin.

Monitor the trend in cost of revenue, as its relationship with revenue has been the primary factor influencing gross margin changes.

CCI Gross Margin — Quarter Ended Sep 30, 2024