MS

Strategy Inc stock research

Dec 31, 2023

FY2023 Q4

Strategy (MSTR) Gross Margin — Quarter Ended Dec 31, 2023

Revenue and gross profit were lower compared to both the immediately preceding quarter and the same quarter one year earlier. Cost of revenue increased, resulting in a lower gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue and gross profit were lower compared to both the immediately preceding quarter and the same quarter one year earlier. Cost of revenue increased, resulting in a lower gross margin.

  • Revenue decreased from the prior quarter and the year-ago quarter, while cost of revenue increased slightly, leading to a lower gross margin.
  • Sequentially, gross margin weakened from the prior quarter, and it was also lower than the same quarter last year.

Gross margin snapshot

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

Gross margin

77.3%

Gross profit

$96.3M

Revenue

$124.5M

Cost of revenue

$28.2M

Quarter-over-quarter change

-2.1 pts

Year-over-year change

-2.5 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$121.9M$94.0M$27.9M77.1%
Jun 30, 2023$120.4M$93.3M$27.1M77.5%
Sep 30, 2023$129.5M$102.8M$26.7M79.4%
Dec 31, 2023$124.5M$96.3M$28.2M77.3%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-2.1 pts

Year-over-year change

Dec 31, 2022

-2.5 pts

What the margin says

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

Revenue decreased from the prior quarter and the year-ago quarter, while cost of revenue increased slightly, leading to a lower gross margin.

Sequentially, gross margin weakened from the prior quarter, and it was also lower than the same quarter last year.

Monitor the trend of cost of revenue in relation to revenue.

MSTR Gross Margin — Quarter Ended Dec 31, 2023