Datavault AI Inc. stock research
FY2023 Q4
Datavault AI (DVLT) Gross Margin — Quarter Ended Dec 31, 2023
Revenue decreased while cost of revenue also decreased, leading to a narrower gross loss and a significant improvement in gross margin compared to the prior quarter. Relative to the same quarter last year, revenue and cost of revenue both fell, and gross profit turned from a slight profit to a substantial loss, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue decreased while cost of revenue also decreased, leading to a narrower gross loss and a significant improvement in gross margin compared to the prior quarter. Relative to the same quarter last year, revenue and cost of revenue both fell, and gross profit turned from a slight profit to a substantial loss, resulting in a weakened gross margin.
- The relationship shows that cost of revenue exceeded revenue in both the current and prior quarter, causing negative gross profit. The primary driver for gross margin improvement from the prior quarter is the proportionally larger decline in cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin improved from a deeply negative level to a less negative level, driven by a sharp reduction in cost of revenue alongside a moderate revenue decline. Versus the year-ago quarter, gross margin weakened from a slightly positive level to a negative level, as cost of revenue fell less proportionally than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-79.5%
Gross profit
-$334000
Revenue
$420000
Cost of revenue
$754000
Quarter-over-quarter change
+137.5 pts
Year-over-year change
-81.2 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 | $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% |
| Dec 31, 2023 | $420000 | -$334000 | $754000 | -79.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+137.5 pts
Year-over-year change
Dec 31, 2022
-81.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship shows that cost of revenue exceeded revenue in both the current and prior quarter, causing negative gross profit. The primary driver for gross margin improvement from the prior quarter is the proportionally larger decline in cost of revenue relative to revenue.
Compared to the prior quarter, gross margin improved from a deeply negative level to a less negative level, driven by a sharp reduction in cost of revenue alongside a moderate revenue decline. Versus the year-ago quarter, gross margin weakened from a slightly positive level to a negative level, as cost of revenue fell less proportionally than revenue.
Monitor whether cost of revenue can be reduced further or if revenue can increase to shift gross profit from negative to positive.