Extra Space Storage Inc. stock research
FY2023 Q2
Extra Space Storage (EXR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit remained negative and cost of revenue rose. Gross margin improved from the prior quarter but weakened relative to the year-ago period, reflecting a mixed trend.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit remained negative and cost of revenue rose. Gross margin improved from the prior quarter but weakened relative to the year-ago period, reflecting a mixed trend.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue grew at a slower pace than revenue compared to the prior quarter, contributing to the improvement in gross margin.
- Compared to the prior quarter, gross margin improved as revenue rose and cost of revenue declined. Compared to the same quarter last year, gross margin weakened as cost of revenue increased more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-416.2%
Gross profit
-$92.4M
Revenue
$22.2M
Cost of revenue
$114.6M
Quarter-over-quarter change
+31.7 pts
Year-over-year change
-8.1 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, 2023 | $21.4M | -$95.8M | $117.2M | -447.9% |
| Jun 30, 2023 | $22.2M | -$92.4M | $114.6M | -416.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+31.7 pts
Year-over-year change
Jun 30, 2022
-8.1 pts
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 relative to revenue. Cost of revenue grew at a slower pace than revenue compared to the prior quarter, contributing to the improvement in gross margin.
Compared to the prior quarter, gross margin improved as revenue rose and cost of revenue declined. Compared to the same quarter last year, gross margin weakened as cost of revenue increased more than revenue.
Monitor the trajectory of cost of revenue, as its growth relative to revenue has been the primary factor influencing gross margin changes.