Equinix, Inc. stock research
FY2024 Q4
Equinix (EQIX) Gross Margin — Quarter Ended Dec 31, 2024
Equinix, which describes itself as a digital infrastructure company operating data centers and interconnection services, reported revenue that was higher than both the prior quarter and the same quarter last year. Gross profit was unchanged from the prior quarter but higher year-over-year, while cost of revenue rose, resulting in a lower gross margin versus both periods.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Equinix, which describes itself as a digital infrastructure company operating data centers and interconnection services, reported revenue that was higher than both the prior quarter and the same quarter last year. Gross profit was unchanged from the prior quarter but higher year-over-year, while cost of revenue rose, resulting in a lower gross margin versus both periods.
- The primary observable factor affecting the margin was the increase in cost of revenue, which grew at a faster rate than revenue. This relationship drove the gross margin lower compared to both the prior quarter and the year-ago quarter.
- Revenue increased relative to both the prior quarter and the same quarter last year, while gross profit was flat sequentially and up annually. Cost of revenue was higher in both comparisons, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.1%
Gross profit
$1.1B
Revenue
$2.3B
Cost of revenue
$1.2B
Quarter-over-quarter change
-3.0 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, 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% |
| Dec 31, 2024 | $2.3B | $1.1B | $1.2B | 47.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-3.0 pts
Year-over-year change
Dec 31, 2023
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable factor affecting the margin was the increase in cost of revenue, which grew at a faster rate than revenue. This relationship drove the gross margin lower compared to both the prior quarter and the year-ago quarter.
Revenue increased relative to both the prior quarter and the same quarter last year, while gross profit was flat sequentially and up annually. Cost of revenue was higher in both comparisons, leading to a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue growth, as its pace directly influences gross margin trends.