Extra Space Storage Inc. stock research
FY2024 Q2
Extra Space Storage (EXR) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was slightly lower than the preceding quarter but higher than the same quarter one year earlier. Gross profit remained negative and cost of revenue exceeded revenue, resulting in a deeply negative gross margin that improved sequentially but weakened relative to the prior year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was slightly lower than the preceding quarter but higher than the same quarter one year earlier. Gross profit remained negative and cost of revenue exceeded revenue, resulting in a deeply negative gross margin that improved sequentially but weakened relative to the prior year.
- The net improvement in gross margin from the preceding quarter was driven by a larger decline in cost of revenue relative to the decline in revenue. This helped reduce the gross loss, although the margin remained negative.
- Compared to the preceding quarter, revenue was slightly lower and cost of revenue was lower, leading to a smaller gross loss and a higher gross margin. Compared to the same quarter one year earlier, revenue was higher but cost of revenue increased more sharply, resulting in a larger gross loss and a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-559.5%
Gross profit
-$167.0M
Revenue
$29.9M
Cost of revenue
$196.9M
Quarter-over-quarter change
+18.9 pts
Year-over-year change
-143.2 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $29.9M | -$167.0M | $196.9M | -559.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+18.9 pts
Year-over-year change
Jun 30, 2023
-143.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The net improvement in gross margin from the preceding quarter was driven by a larger decline in cost of revenue relative to the decline in revenue. This helped reduce the gross loss, although the margin remained negative.
Compared to the preceding quarter, revenue was slightly lower and cost of revenue was lower, leading to a smaller gross loss and a higher gross margin. Compared to the same quarter one year earlier, revenue was higher but cost of revenue increased more sharply, resulting in a larger gross loss and a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as cost of revenue increased at a faster pace year-over-year, widening the gross loss.