IonQ, Inc. stock research
FY2023 Q1
IonQ (IONQ) Gross Margin — Quarter Ended Mar 31, 2023
Revenue rose compared to the prior quarter, but gross profit edged lower and cost of revenue increased at a faster pace, causing gross margin to weaken. Relative to the same quarter one year earlier, revenue grew substantially, gross profit increased meaningfully, and cost of revenue rose at a slower rate, leading to a significant improvement in gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue rose compared to the prior quarter, but gross profit edged lower and cost of revenue increased at a faster pace, causing gross margin to weaken. Relative to the same quarter one year earlier, revenue grew substantially, gross profit increased meaningfully, and cost of revenue rose at a slower rate, leading to a significant improvement in gross margin.
- The strongest observable margin driver is the year-over-year comparison, where revenue growth outpaced the increase in cost of revenue, resulting in a much higher gross margin.
- Compared with the immediately preceding quarter, gross margin weakened as cost of revenue increased more quickly than revenue. Compared with the same quarter one year earlier, gross margin strengthened markedly due to a larger proportional rise in revenue relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.0%
Gross profit
$1.5M
Revenue
$4.3M
Cost of revenue
$2.8M
Quarter-over-quarter change
n/a
Year-over-year change
+27.9 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 | $4.3M | $1.5M | $2.8M | 34.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+27.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year comparison, where revenue growth outpaced the increase in cost of revenue, resulting in a much higher gross margin.
Compared with the immediately preceding quarter, gross margin weakened as cost of revenue increased more quickly than revenue. Compared with the same quarter one year earlier, gross margin strengthened markedly due to a larger proportional rise in revenue relative to cost of revenue.
Monitor the trend of cost of revenue relative to revenue, as the sequential quarter showed a faster increase in cost that compressed gross margin.