D-Wave Quantum Inc. stock research
FY2023 Q1
D-Wave Quantum (QBTS) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue increased relative to the year-ago period. As a result, gross margin weakened substantially from both comparison periods.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue increased relative to the year-ago period. As a result, gross margin weakened substantially from both comparison periods.
- The decline in gross margin was driven by a larger proportional decrease in gross profit relative to revenue, as cost of revenue did not decline at the same rate.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, with cost of revenue slightly higher, leading to a weaker gross margin. Compared to the same quarter one year earlier, revenue was slightly lower, gross profit was lower, and cost of revenue was higher, resulting in a weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.6%
Gross profit
$421000
Revenue
$1.6M
Cost of revenue
$1.2M
Quarter-over-quarter change
n/a
Year-over-year change
-37.4 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 | $1.6M | $421000 | $1.2M | 26.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-37.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by a larger proportional decrease in gross profit relative to revenue, as cost of revenue did not decline at the same rate.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, with cost of revenue slightly higher, leading to a weaker gross margin. Compared to the same quarter one year earlier, revenue was slightly lower, gross profit was lower, and cost of revenue was higher, resulting in a weakened gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as it increased year-over-year while revenue declined.