IO

IonQ, Inc. stock research

Dec 31, 2024

FY2024 Q4

IonQ (IONQ) Gross Margin — Quarter Ended Dec 31, 2024

Revenue decreased from the prior quarter, while gross profit increased, leading to an improved gross margin. Compared to the same period last year, gross margin turned positive from a negative position, driven by higher revenue and a lower proportion of cost of revenue.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue decreased from the prior quarter, while gross profit increased, leading to an improved gross margin. Compared to the same period last year, gross margin turned positive from a negative position, driven by higher revenue and a lower proportion of cost of revenue.

  • The strongest observable margin driver is the reduction in cost of revenue relative to gross profit, as cost of revenue fell while gross profit rose sequentially.
  • Compared to the immediately preceding quarter, gross margin improved, driven by higher gross profit on lower revenue. Relative to the same quarter one year earlier, gross margin strengthened significantly, shifting from a negative to a positive figure.

Gross margin snapshot

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

Gross margin

22.7%

Gross profit

$2.7M

Revenue

$11.7M

Cost of revenue

$9.0M

Quarter-over-quarter change

+3.4 pts

Year-over-year change

+31.9 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, 2024$7.6M$213000$7.4M2.8%
Jun 30, 2024$11.4M$2.9M$8.5M25.1%
Sep 30, 2024$12.4M$2.4M$10.0M19.3%
Dec 31, 2024$11.7M$2.7M$9.0M22.7%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

+3.4 pts

Year-over-year change

Dec 31, 2023

+31.9 pts

What the margin says

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

The strongest observable margin driver is the reduction in cost of revenue relative to gross profit, as cost of revenue fell while gross profit rose sequentially.

Compared to the immediately preceding quarter, gross margin improved, driven by higher gross profit on lower revenue. Relative to the same quarter one year earlier, gross margin strengthened significantly, shifting from a negative to a positive figure.

Monitor the sustainability of cost of revenue reductions relative to revenue trends in upcoming quarters.