CenterPoint Energy (CNP) Gross Margin — Quarter Ended Dec 31, 2023

The current quarter's gross margin was nearly complete, with cost of revenue representing a minimal share of revenue. Gross margin improved compared to both the preceding quarter and the same quarter one year earlier.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

The strongest observable margin driver is the exceptionally low cost of revenue, which allowed gross margin to approach its maximum level.
Revenue and gross profit were higher than the preceding quarter but lower than the same quarter one year earlier. Gross margin was higher than both comparable periods.

Gross margin snapshot

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

Gross margin

100.0%

Gross profit

$2.1B

Revenue

$2.1B

Cost of revenue

$1.0M

Quarter-over-quarter change

+0.0 pts

Year-over-year change

+2.2 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	$2.8B	$2.7B	$40.0M	98.6%
Jun 30, 2023	$1.9B	$1.8B	$57.0M	97.0%
Sep 30, 2023	$1.9B	$1.9B	$1.0M	99.9%
Dec 31, 2023	$2.1B	$2.1B	$1.0M	100.0%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

+0.0 pts

Year-over-year change

Dec 31, 2022

+2.2 pts

What the margin says

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

The strongest observable margin driver is the exceptionally low cost of revenue, which allowed gross margin to approach its maximum level.

Revenue and gross profit were higher than the preceding quarter but lower than the same quarter one year earlier. Gross margin was higher than both comparable periods.

Monitor whether the cost of revenue can remain at such a low level in future periods.