Equinix, Inc. stock research
FY2023 Q1
Equinix (EQIX) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, and because cost of revenue grew at a slower pace, the gross margin improved.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, and because cost of revenue grew at a slower pace, the gross margin improved.
- The strongest observable driver of margin improvement was the increase in revenue relative to the change in cost of revenue. Revenue grew while cost of revenue increased only modestly, leading to a higher gross margin.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.8%
Gross profit
$1.2B
Revenue
$2.2B
Cost of revenue
$1.0B
Quarter-over-quarter change
n/a
Year-over-year change
+7.6 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 | $2.2B | $1.2B | $1.0B | 54.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+7.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of margin improvement was the increase in revenue relative to the change in cost of revenue. Revenue grew while cost of revenue increased only modestly, leading to a higher gross margin.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Monitor the relationship between revenue growth and cost of revenue growth to see if the margin improvement can be sustained.