Extra Space Storage Inc. stock research
FY2023 Q4
Extra Space Storage (EXR) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit remained negative and gross margin weakened relative to the year-ago period but improved slightly from the preceding quarter.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit remained negative and gross margin weakened relative to the year-ago period but improved slightly from the preceding quarter.
- The strongest observable driver is the relationship between revenue and cost of revenue: revenue growth outpaced cost growth sequentially, leading to a modest margin improvement, but cost growth exceeded revenue growth year-over-year, causing margin erosion.
- Compared to the prior quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter last year, gross margin weakened because 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
-542.1%
Gross profit
-$164.7M
Revenue
$30.4M
Cost of revenue
$195.0M
Quarter-over-quarter change
+18.9 pts
Year-over-year change
-108.8 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% |
| Sep 30, 2023 | $28.0M | -$157.2M | $185.2M | -561.0% |
| Dec 31, 2023 | $30.4M | -$164.7M | $195.0M | -542.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+18.9 pts
Year-over-year change
Dec 31, 2022
-108.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue and cost of revenue: revenue growth outpaced cost growth sequentially, leading to a modest margin improvement, but cost growth exceeded revenue growth year-over-year, causing margin erosion.
Compared to the prior quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter last year, gross margin weakened because cost of revenue increased more than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate has been a key factor in margin changes.