Strategy (MSTR) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit were lower than in the immediately preceding quarter and the same quarter one year earlier. Cost of revenue was higher, causing gross margin to weaken.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit were lower than in the immediately preceding quarter and the same quarter one year earlier. Cost of revenue was higher, causing gross margin to weaken.

The most evident driver of the margin change was the increase in cost of revenue while revenue declined, leading to a lower gross margin.
Compared with the prior quarter and the year-ago quarter, gross margin weakened as revenue fell and cost of revenue rose.

Gross margin snapshot

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

Gross margin

72.2%

Gross profit

$80.5M

Revenue

$111.4M

Cost of revenue

$30.9M

Quarter-over-quarter change

-1.7 pts

Year-over-year change

-5.2 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
Sep 30, 2023	$129.5M	$102.8M	$26.7M	79.4%
Dec 31, 2023	$124.5M	$96.3M	$28.2M	77.3%
Mar 31, 2024	$115.2M	$85.2M	$30.0M	74.0%
Jun 30, 2024	$111.4M	$80.5M	$30.9M	72.2%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-1.7 pts

Year-over-year change

Jun 30, 2023

-5.2 pts

What the margin says

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

The most evident driver of the margin change was the increase in cost of revenue while revenue declined, leading to a lower gross margin.

Compared with the prior quarter and the year-ago quarter, gross margin weakened as revenue fell and cost of revenue rose.

Watch the trend of cost of revenue relative to revenue.