IonQ, Inc. stock research
FY2024 Q1
IonQ (IONQ) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit turned positive from negative in the prior quarter but was lower than a year ago. Gross margin improved from negative to positive sequentially but weakened relative to the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit turned positive from negative in the prior quarter but was lower than a year ago. Gross margin improved from negative to positive sequentially but weakened relative to the year-ago period.
- The shift from negative to positive gross margin was driven by revenue growth that outpaced the increase in cost of revenue compared to the prior quarter. However, relative to the year-ago quarter, cost of revenue grew more than revenue, compressing the margin.
- Compared to the prior quarter, revenue and cost of revenue both increased, but gross profit improved from negative to positive, leading to a higher gross margin. Versus the same quarter a year ago, revenue was higher but gross profit was lower, as cost of revenue increased more sharply, resulting in a weaker gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
2.8%
Gross profit
$213000
Revenue
$7.6M
Cost of revenue
$7.4M
Quarter-over-quarter change
+12.0 pts
Year-over-year change
-31.2 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $5.5M | $1.3M | $4.2M | 23.3% |
| Sep 30, 2023 | $6.1M | $1.4M | $4.8M | 22.5% |
| Dec 31, 2023 | $6.1M | -$563000 | $6.7M | -9.2% |
| Mar 31, 2024 | $7.6M | $213000 | $7.4M | 2.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+12.0 pts
Year-over-year change
Mar 31, 2023
-31.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The shift from negative to positive gross margin was driven by revenue growth that outpaced the increase in cost of revenue compared to the prior quarter. However, relative to the year-ago quarter, cost of revenue grew more than revenue, compressing the margin.
Compared to the prior quarter, revenue and cost of revenue both increased, but gross profit improved from negative to positive, leading to a higher gross margin. Versus the same quarter a year ago, revenue was higher but gross profit was lower, as cost of revenue increased more sharply, resulting in a weaker gross margin.
Monitor the trend of cost of revenue relative to revenue, as the margin improvement may depend on sustaining a slower growth in cost of revenue.