Equinix, Inc. stock research
FY2024 Q3
Equinix (EQIX) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the same quarter a year ago, while cost of revenue remained at a similar level, resulting in a higher gross margin. Sequentially, revenue and cost of revenue were essentially unchanged, and gross profit was stable, leading to a slight improvement in gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the same quarter a year ago, while cost of revenue remained at a similar level, resulting in a higher gross margin. Sequentially, revenue and cost of revenue were essentially unchanged, and gross profit was stable, leading to a slight improvement in gross margin.
- The strongest observable driver is the growth in revenue relative to the cost of revenue when compared with the same quarter a year earlier, as revenue increased while cost of revenue was stable.
- Compared to the immediately preceding quarter, gross margin improved slightly, with revenue and cost of revenue both flat. Relative to the same quarter one year earlier, gross margin was higher, driven by higher revenue and a similar cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.1%
Gross profit
$1.1B
Revenue
$2.2B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+2.0 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $2.2B | $1.1B | $1.1B | 50.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.2 pts
Year-over-year change
Sep 30, 2023
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the growth in revenue relative to the cost of revenue when compared with the same quarter a year earlier, as revenue increased while cost of revenue was stable.
Compared to the immediately preceding quarter, gross margin improved slightly, with revenue and cost of revenue both flat. Relative to the same quarter one year earlier, gross margin was higher, driven by higher revenue and a similar cost of revenue.
Monitor the trend of cost of revenue, as it remained stable despite revenue growth, and any future change could affect gross margin.