Strategy Inc stock research
FY2024 Q3
Strategy (MSTR) Gross Margin — Quarter Ended Sep 30, 2024
Revenue rose sequentially but fell compared to the same quarter last year, while gross profit edged higher from the prior quarter but declined year-over-year. Cost of revenue increased both period-over-period and versus the prior year, causing gross margin to narrow from both the immediate preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue rose sequentially but fell compared to the same quarter last year, while gross profit edged higher from the prior quarter but declined year-over-year. Cost of revenue increased both period-over-period and versus the prior year, causing gross margin to narrow from both the immediate preceding quarter and the year-ago quarter.
- The increase in cost of revenue outpaced the revenue improvement, putting pressure on gross margin. Gross profit growth lagged revenue growth as costs rose more quickly.
- Compared to the prior quarter, revenue improved while gross margin weakened. Versus the same quarter last year, both revenue and gross profit were lower, and gross margin narrowed.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.4%
Gross profit
$81.7M
Revenue
$116.1M
Cost of revenue
$34.3M
Quarter-over-quarter change
-1.8 pts
Year-over-year change
-9.0 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $116.1M | $81.7M | $34.3M | 70.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.8 pts
Year-over-year change
Sep 30, 2023
-9.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue outpaced the revenue improvement, putting pressure on gross margin. Gross profit growth lagged revenue growth as costs rose more quickly.
Compared to the prior quarter, revenue improved while gross margin weakened. Versus the same quarter last year, both revenue and gross profit were lower, and gross margin narrowed.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as it continues to affect gross margin.