Datavault AI Inc. stock research
FY2023 Q3
Datavault AI (DVLT) Gross Margin — Quarter Ended Sep 30, 2023
Revenue for the current quarter was insufficient to cover cost of revenue, resulting in a negative gross profit and a negative gross margin. Revenue increased from the prior quarter, but cost of revenue grew more, worsening the gross margin, and compared to the same quarter last year, revenue was lower while cost of revenue was higher, turning a previously positive gross margin negative.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue for the current quarter was insufficient to cover cost of revenue, resulting in a negative gross profit and a negative gross margin. Revenue increased from the prior quarter, but cost of revenue grew more, worsening the gross margin, and compared to the same quarter last year, revenue was lower while cost of revenue was higher, turning a previously positive gross margin negative.
- The observable driver of the gross margin is the relationship between cost of revenue and revenue, where cost of revenue has exceeded revenue, leading to a negative gross margin. This gap widened compared to the prior quarter and reversed from a year ago.
- Compared to the prior quarter, revenue increased but cost of revenue increased more, causing a larger negative gross profit and a weaker gross margin. Compared to the same quarter last year, revenue decreased while cost of revenue increased, resulting in a gross margin that turned from positive to negative.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-217.0%
Gross profit
-$1.7M
Revenue
$769000
Cost of revenue
$2.4M
Quarter-over-quarter change
-169.7 pts
Year-over-year change
-230.9 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 | $469000 | -$1.3M | $1.7M | -267.2% |
| Jun 30, 2023 | $425000 | -$201000 | $626000 | -47.3% |
| Sep 30, 2023 | $769000 | -$1.7M | $2.4M | -217.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-169.7 pts
Year-over-year change
Sep 30, 2022
-230.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The observable driver of the gross margin is the relationship between cost of revenue and revenue, where cost of revenue has exceeded revenue, leading to a negative gross margin. This gap widened compared to the prior quarter and reversed from a year ago.
Compared to the prior quarter, revenue increased but cost of revenue increased more, causing a larger negative gross profit and a weaker gross margin. Compared to the same quarter last year, revenue decreased while cost of revenue increased, resulting in a gross margin that turned from positive to negative.
Monitor the trend of cost of revenue relative to revenue, as it is the primary determinant of the gross margin direction.