IonQ, Inc. stock research
FY2023 Q2
IonQ (IONQ) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased from both the prior quarter and the same quarter one year earlier. Gross profit declined from the prior quarter but rose from the year-ago period, while cost of revenue increased in both comparisons, resulting in a gross margin that weakened quarter over quarter but improved year over year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased from both the prior quarter and the same quarter one year earlier. Gross profit declined from the prior quarter but rose from the year-ago period, while cost of revenue increased in both comparisons, resulting in a gross margin that weakened quarter over quarter but improved year over year.
- The strongest observable driver is the change in cost of revenue relative to revenue. Quarter over quarter, cost of revenue grew faster than revenue, leading to margin compression. Year over year, revenue growth outpaced cost growth, supporting margin expansion.
- Compared to the immediately preceding quarter, gross margin weakened as gross profit decreased despite higher revenue. Compared to the same quarter one year earlier, gross margin improved, with gross profit increasing more rapidly than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.3%
Gross profit
$1.3M
Revenue
$5.5M
Cost of revenue
$4.2M
Quarter-over-quarter change
-10.7 pts
Year-over-year change
+7.4 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% |
| Jun 30, 2023 | $5.5M | $1.3M | $4.2M | 23.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-10.7 pts
Year-over-year change
Jun 30, 2022
+7.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue. Quarter over quarter, cost of revenue grew faster than revenue, leading to margin compression. Year over year, revenue growth outpaced cost growth, supporting margin expansion.
Compared to the immediately preceding quarter, gross margin weakened as gross profit decreased despite higher revenue. Compared to the same quarter one year earlier, gross margin improved, with gross profit increasing more rapidly than cost of revenue.
Monitor the trend of cost of revenue growth relative to revenue growth, as a faster increase in cost could pressure margins.