Equinix, Inc. stock research
FY2024 Q2
Equinix (EQIX) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained unchanged. Gross margin improved sequentially and year over year, reflecting revenue growth paired with a stable cost base.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained unchanged. Gross margin improved sequentially and year over year, reflecting revenue growth paired with a stable cost base.
- The strongest observable margin driver is the increase in revenue with cost of revenue held constant, which directly expanded gross profit and improved gross margin. This effect is evident in both the sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.9%
Gross profit
$1.1B
Revenue
$2.2B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+2.4 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $2.2B | $1.1B | $1.1B | 49.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.2 pts
Year-over-year change
Jun 30, 2023
+2.4 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 revenue with cost of revenue held constant, which directly expanded gross profit and improved gross margin. This effect is evident in both the sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin was higher.
Monitor whether cost of revenue remains stable in future quarters, as any increase could pressure gross margin given its current fixed level.