D-Wave Quantum Inc. stock research
FY2023 Q2
D-Wave Quantum (QBTS) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased while cost of revenue decreased, leading to a higher gross profit and an improved gross margin compared to the prior quarter. Versus the same quarter one year earlier, revenue was higher but gross profit was lower, as cost of revenue increased more than revenue, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased while cost of revenue decreased, leading to a higher gross profit and an improved gross margin compared to the prior quarter. Versus the same quarter one year earlier, revenue was higher but gross profit was lower, as cost of revenue increased more than revenue, resulting in a weakened gross margin.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which directly supported gross profit growth and margin expansion from the prior quarter.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.3%
Gross profit
$705000
Revenue
$1.7M
Cost of revenue
$1.0M
Quarter-over-quarter change
+14.7 pts
Year-over-year change
-13.5 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% |
| Jun 30, 2023 | $1.7M | $705000 | $1.0M | 41.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+14.7 pts
Year-over-year change
Jun 30, 2022
-13.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which directly supported gross profit growth and margin expansion from the prior quarter.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its increase year-over-year outpaced revenue growth and compressed gross margin.