Strategy Inc stock research
FY2023 Q2
Strategy (MSTR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin improved sequentially as cost of revenue declined, but it weakened compared to the year-ago period due to higher cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin improved sequentially as cost of revenue declined, but it weakened compared to the year-ago period due to higher cost of revenue.
- The sequential improvement in gross margin was primarily associated with a reduction in cost of revenue relative to the decline in revenue.
- Compared to the preceding quarter, revenue and gross profit were slightly lower, cost of revenue decreased, and gross margin edged higher. Versus the same quarter one year earlier, revenue and gross profit fell, cost of revenue rose, and gross margin contracted.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.5%
Gross profit
$93.3M
Revenue
$120.4M
Cost of revenue
$27.1M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-1.9 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 | $121.9M | $94.0M | $27.9M | 77.1% |
| Jun 30, 2023 | $120.4M | $93.3M | $27.1M | 77.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.4 pts
Year-over-year change
Jun 30, 2022
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was primarily associated with a reduction in cost of revenue relative to the decline in revenue.
Compared to the preceding quarter, revenue and gross profit were slightly lower, cost of revenue decreased, and gross margin edged higher. Versus the same quarter one year earlier, revenue and gross profit fell, cost of revenue rose, and gross margin contracted.
Monitor the trajectory of cost of revenue, which decreased sequentially but increased year over year, and note the company's liquidity and capital allocation as described in the filing.