DV

Datavault AI Inc. stock research

Jun 30, 2023

FY2023 Q2

Datavault AI (DVLT) Gross Margin — Quarter Ended Jun 30, 2023

Revenue declined from both the prior quarter and the same quarter last year, while cost of revenue exceeded revenue, resulting in a negative gross profit and gross margin. Compared to the prior quarter, the gross margin improved as cost of revenue fell more sharply than revenue, but relative to the year-ago period, the gross margin weakened from positive to negative.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue declined from both the prior quarter and the same quarter last year, while cost of revenue exceeded revenue, resulting in a negative gross profit and gross margin. Compared to the prior quarter, the gross margin improved as cost of revenue fell more sharply than revenue, but relative to the year-ago period, the gross margin weakened from positive to negative.

  • The reduction in cost of revenue from the prior quarter was the most significant factor in the gross margin improvement, even as revenue also decreased.
  • Gross margin improved from the prior quarter, moving from a deeply negative level to a less negative level, but weakened compared to the same quarter last year when it was positive. Revenue was lower in both comparisons, while cost of revenue was lower than the prior quarter and also lower than the year-ago quarter.

Gross margin snapshot

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

Gross margin

-47.3%

Gross profit

-$201000

Revenue

$425000

Cost of revenue

$626000

Quarter-over-quarter change

+219.9 pts

Year-over-year change

-67.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$469000-$1.3M$1.7M-267.2%
Jun 30, 2023$425000-$201000$626000-47.3%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+219.9 pts

Year-over-year change

Jun 30, 2022

-67.2 pts

What the margin says

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

The reduction in cost of revenue from the prior quarter was the most significant factor in the gross margin improvement, even as revenue also decreased.

Gross margin improved from the prior quarter, moving from a deeply negative level to a less negative level, but weakened compared to the same quarter last year when it was positive. Revenue was lower in both comparisons, while cost of revenue was lower than the prior quarter and also lower than the year-ago quarter.

Monitor inventory levels as discussed in the filing's liquidity section, given their potential influence on cost of revenue.

DVLT Gross Margin — Quarter Ended Jun 30, 2023