Equinix, Inc. stock research
FY2024 Q1
Equinix (EQIX) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit were stable sequentially, while cost of revenue remained unchanged, resulting in a slight gross margin improvement. Compared to the same quarter a year earlier, revenue and gross profit were lower and cost of revenue was higher, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit were stable sequentially, while cost of revenue remained unchanged, resulting in a slight gross margin improvement. Compared to the same quarter a year earlier, revenue and gross profit were lower and cost of revenue was higher, leading to a lower gross margin.
- The most notable gross margin driver is the relationship between cost of revenue and revenue. Sequentially, cost of revenue was stable while revenue was stable, allowing a marginal gross margin increase. Year over year, cost of revenue increased while revenue decreased, compressing gross margin.
- Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin weakened significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.7%
Gross profit
$1.0B
Revenue
$2.1B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
-6.1 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $2.1B | $1.0B | $1.1B | 48.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.5 pts
Year-over-year change
Mar 31, 2023
-6.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable gross margin driver is the relationship between cost of revenue and revenue. Sequentially, cost of revenue was stable while revenue was stable, allowing a marginal gross margin increase. Year over year, cost of revenue increased while revenue decreased, compressing gross margin.
Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin weakened significantly.
Monitor the trajectory of cost of revenue relative to revenue, as the year-over-year increase in cost of revenue has reduced gross margin.