IO

IonQ, Inc. stock research

Sep 30, 2023

FY2023 Q3

IonQ (IONQ) Gross Margin — Quarter Ended Sep 30, 2023

In the current quarter, revenue and gross profit both increased over the prior quarter and the same quarter last year. However, gross margin decreased slightly compared to the prior quarter while improving from the year-ago period.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

In the current quarter, revenue and gross profit both increased over the prior quarter and the same quarter last year. However, gross margin decreased slightly compared to the prior quarter while improving from the year-ago period.

  • Gross profit rose at a slower pace than revenue compared to the prior quarter, leading to a minor decline in gross margin. Versus a year ago, gross profit growth outpaced revenue growth, resulting in an improved gross margin.
  • Sequentially, revenue and gross profit were higher, but gross margin was slightly lower. Year over year, all three metrics—revenue, gross profit, and gross margin—were higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

22.5%

Gross profit

$1.4M

Revenue

$6.1M

Cost of revenue

$4.8M

Quarter-over-quarter change

-0.8 pts

Year-over-year change

+4.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$4.3M$1.5M$2.8M34.0%
Jun 30, 2023$5.5M$1.3M$4.2M23.3%
Sep 30, 2023$6.1M$1.4M$4.8M22.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

-0.8 pts

Year-over-year change

Sep 30, 2022

+4.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross profit rose at a slower pace than revenue compared to the prior quarter, leading to a minor decline in gross margin. Versus a year ago, gross profit growth outpaced revenue growth, resulting in an improved gross margin.

Sequentially, revenue and gross profit were higher, but gross margin was slightly lower. Year over year, all three metrics—revenue, gross profit, and gross margin—were higher.

Monitor the trend in cost of revenue growth relative to revenue growth, as slight margin compression was observed sequentially.

IONQ Gross Margin — Quarter Ended Sep 30, 2023