Essex Property Trust, Inc. stock research
FY2024 Q2
Essex Property Trust (ESS) Gross Margin — Quarter Ended Jun 30, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased from the prior quarter. The gross margin improved significantly from the prior quarter, driven by a proportionally larger reduction in cost of revenue relative to the decline in revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased from the prior quarter. The gross margin improved significantly from the prior quarter, driven by a proportionally larger reduction in cost of revenue relative to the decline in revenue.
- The strongest observable margin driver is the change in cost of revenue, which decreased more sharply than revenue, leading to an expansion in gross margin.
- Compared to the immediately preceding quarter, revenue was lower but gross profit was higher, resulting in a stronger gross margin. Compared to the same quarter one year earlier, revenue was lower, and gross profit and gross margin data for that period are not available.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12174.4%
Gross profit
$313.2M
Revenue
$2.6M
Cost of revenue
-$310.7M
Quarter-over-quarter change
+1200.7 pts
Year-over-year change
n/a
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 | $2.7M | $297.7M | -$295.0M | 10973.7% |
| Jun 30, 2024 | $2.6M | $313.2M | -$310.7M | 12174.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1200.7 pts
Year-over-year change
Jun 30, 2023
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue, which decreased more sharply than revenue, leading to an expansion in gross margin.
Compared to the immediately preceding quarter, revenue was lower but gross profit was higher, resulting in a stronger gross margin. Compared to the same quarter one year earlier, revenue was lower, and gross profit and gross margin data for that period are not available.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement can be sustained.