Extra Space Storage Inc. stock research
FY2024 Q3
Extra Space Storage (EXR) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was unchanged from the prior quarter and higher than the same quarter a year ago, while cost of revenue increased in both comparisons, resulting in a larger negative gross profit and a weakened gross margin. The gross margin remained deeply negative, reflecting that cost of revenue far exceeded revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was unchanged from the prior quarter and higher than the same quarter a year ago, while cost of revenue increased in both comparisons, resulting in a larger negative gross profit and a weakened gross margin. The gross margin remained deeply negative, reflecting that cost of revenue far exceeded revenue.
- The strongest observable margin driver was the rise in cost of revenue, which grew at a faster pace than revenue, directly worsening the negative gross profit and gross margin.
- Compared with the prior quarter, gross margin weakened as cost of revenue increased while revenue stayed flat. Compared with the same quarter a year ago, gross margin also weakened, as revenue grew but cost of revenue grew more, leading to a larger negative gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-599.5%
Gross profit
-$179.2M
Revenue
$29.9M
Cost of revenue
$209.0M
Quarter-over-quarter change
-40.1 pts
Year-over-year change
-38.6 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $29.9M | -$179.2M | $209.0M | -599.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-40.1 pts
Year-over-year change
Sep 30, 2023
-38.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the rise in cost of revenue, which grew at a faster pace than revenue, directly worsening the negative gross profit and gross margin.
Compared with the prior quarter, gross margin weakened as cost of revenue increased while revenue stayed flat. Compared with the same quarter a year ago, gross margin also weakened, as revenue grew but cost of revenue grew more, leading to a larger negative gross profit.
Monitor the trajectory of cost of revenue relative to revenue, as its continued growth could further pressure gross margin.