Strategy Inc stock research
FY2024 Q4
Strategy (MSTR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit increased from the prior quarter but decreased from the same quarter last year. Cost of revenue remained nearly flat quarter over quarter and rose year over year, resulting in a gross margin that improved sequentially but weakened compared to the prior year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit increased from the prior quarter but decreased from the same quarter last year. Cost of revenue remained nearly flat quarter over quarter and rose year over year, resulting in a gross margin that improved sequentially but weakened compared to the prior year.
- The sequential improvement in gross margin was driven by higher revenue and stable cost of revenue, while the year-over-year decline reflects a larger increase in cost relative to revenue. The strongest observable driver is the quarter-over-quarter margin expansion.
- Compared to the prior quarter, revenue, gross profit, and gross margin all improved. Compared to the same quarter last year, revenue, gross profit, and gross margin all declined, while cost of revenue increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.7%
Gross profit
$86.5M
Revenue
$120.7M
Cost of revenue
$34.2M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
-5.6 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, 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% |
| Dec 31, 2024 | $120.7M | $86.5M | $34.2M | 71.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+1.3 pts
Year-over-year change
Dec 31, 2023
-5.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by higher revenue and stable cost of revenue, while the year-over-year decline reflects a larger increase in cost relative to revenue. The strongest observable driver is the quarter-over-quarter margin expansion.
Compared to the prior quarter, revenue, gross profit, and gross margin all improved. Compared to the same quarter last year, revenue, gross profit, and gross margin all declined, while cost of revenue increased.
Monitor the trend in cost of revenue, as its year-over-year increase outpaced revenue growth, pressuring margins.