Essex Property Trust, Inc. stock research
FY2024 Q3
Essex Property Trust (ESS) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was stable sequentially, while gross profit increased slightly, resulting in a higher gross margin. The cost of revenue was negative, which contributed to the elevated gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was stable sequentially, while gross profit increased slightly, resulting in a higher gross margin. The cost of revenue was negative, which contributed to the elevated gross margin.
- The strongest observable margin driver is the negative cost of revenue, which, when combined with low revenue, produces a very high gross margin. The relationship between these metrics is the primary factor.
- Compared to the immediately preceding quarter, revenue was unchanged, gross profit was slightly higher, and gross margin improved. No comparison with the same quarter one year earlier is available for gross profit or cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12225.6%
Gross profit
$313.3M
Revenue
$2.6M
Cost of revenue
-$310.8M
Quarter-over-quarter change
+51.2 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% |
| Sep 30, 2024 | $2.6M | $313.3M | -$310.8M | 12225.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+51.2 pts
Year-over-year change
Sep 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 negative cost of revenue, which, when combined with low revenue, produces a very high gross margin. The relationship between these metrics is the primary factor.
Compared to the immediately preceding quarter, revenue was unchanged, gross profit was slightly higher, and gross margin improved. No comparison with the same quarter one year earlier is available for gross profit or cost of revenue.
Monitor the direction of cost of revenue, as its negative value is the key factor in the gross margin level.