Equinix, Inc. stock research
FY2023 Q4
Equinix (EQIX) Gross Margin — Quarter Ended Dec 31, 2023
Equinix, a digital infrastructure company, reported stable revenue sequentially with a slight increase in gross profit, resulting in a marginally higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit both increased, while gross margin improved slightly.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Equinix, a digital infrastructure company, reported stable revenue sequentially with a slight increase in gross profit, resulting in a marginally higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit both increased, while gross margin improved slightly.
- The strongest observable margin driver is the increase in gross profit relative to cost of revenue. Sequentially, gross profit rose while cost of revenue remained unchanged, and year-over-year gross profit grew more than cost of revenue, lifting gross margin.
- Compared to the prior quarter, revenue was stable, gross profit was higher, cost of revenue was unchanged, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin also slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.2%
Gross profit
$1.0B
Revenue
$2.1B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.1 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% |
| Dec 31, 2023 | $2.1B | $1.0B | $1.1B | 48.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.1 pts
Year-over-year change
Dec 31, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to cost of revenue. Sequentially, gross profit rose while cost of revenue remained unchanged, and year-over-year gross profit grew more than cost of revenue, lifting gross margin.
Compared to the prior quarter, revenue was stable, gross profit was higher, cost of revenue was unchanged, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin also slightly higher.
Monitor the trajectory of cost of revenue, as it remained stable in the current quarter after increasing year-over-year.