Equinix, Inc. stock research
FY2023 Q3
Equinix (EQIX) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased from the prior quarter and from the same quarter last year, while cost of revenue was stable sequentially but higher year‑over‑year. Gross margin improved sequentially but weakened compared with the year‑ago period, reflecting mixed trends in the relationship between revenue growth and cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased from the prior quarter and from the same quarter last year, while cost of revenue was stable sequentially but higher year‑over‑year. Gross margin improved sequentially but weakened compared with the year‑ago period, reflecting mixed trends in the relationship between revenue growth and cost of revenue.
- The strongest observable margin driver is the sequential improvement in gross margin, which occurred as revenue increased while cost of revenue remained at a similar level compared with the prior quarter.
- Compared with the immediately preceding quarter, revenue was higher and gross profit was higher, while cost of revenue was stable and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue was higher and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.1%
Gross profit
$992.0M
Revenue
$2.1B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
-1.1 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% |
| Jun 30, 2023 | $2.0B | $958.0M | $1.1B | 47.4% |
| Sep 30, 2023 | $2.1B | $992.0M | $1.1B | 48.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.7 pts
Year-over-year change
Sep 30, 2022
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, which occurred as revenue increased while cost of revenue remained at a similar level compared with the prior quarter.
Compared with the immediately preceding quarter, revenue was higher and gross profit was higher, while cost of revenue was stable and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue was higher and gross margin weakened.
Monitor the trend in cost of revenue, as it remained stable sequentially but increased from the same quarter last year, with a notable impact on the year‑over‑year gross margin comparison.