Extra Space Storage Inc. stock research
FY2024 Q1
Extra Space Storage (EXR) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased slightly from the preceding quarter but increased compared to the same quarter one year earlier. Gross profit remained negative and weakened further, as cost of revenue grew more than revenue, resulting in a more negative gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue decreased slightly from the preceding quarter but increased compared to the same quarter one year earlier. Gross profit remained negative and weakened further, as cost of revenue grew more than revenue, resulting in a more negative gross margin.
- The primary driver of the negative gross margin is that cost of revenue substantially exceeds revenue, and this gap widened in the current quarter relative to both prior periods.
- Compared to the preceding quarter, revenue was slightly lower while cost of revenue was higher, leading to a weaker gross profit and a more negative gross margin. Compared to the same quarter one year earlier, revenue was higher but cost of revenue increased even more, resulting in a further weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-578.4%
Gross profit
-$174.4M
Revenue
$30.1M
Cost of revenue
$204.5M
Quarter-over-quarter change
-36.3 pts
Year-over-year change
-130.5 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $30.1M | -$174.4M | $204.5M | -578.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-36.3 pts
Year-over-year change
Mar 31, 2023
-130.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the negative gross margin is that cost of revenue substantially exceeds revenue, and this gap widened in the current quarter relative to both prior periods.
Compared to the preceding quarter, revenue was slightly lower while cost of revenue was higher, leading to a weaker gross profit and a more negative gross margin. Compared to the same quarter one year earlier, revenue was higher but cost of revenue increased even more, resulting in a further weakened gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as the widening gap continues to pressure gross margin.