D-Wave Quantum Inc. stock research
FY2024 Q2
D-Wave Quantum (QBTS) Gross Margin — Quarter Ended Jun 30, 2024
In the current quarter, revenue and gross profit decreased compared to the prior quarter, while cost of revenue remained nearly unchanged, resulting in a lower gross margin. Year-over-year, revenue and gross profit increased, cost of revenue declined, and gross margin improved significantly.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
In the current quarter, revenue and gross profit decreased compared to the prior quarter, while cost of revenue remained nearly unchanged, resulting in a lower gross margin. Year-over-year, revenue and gross profit increased, cost of revenue declined, and gross margin improved significantly.
- The gross margin improvement from the prior year quarter is observable through the combination of higher revenue and lower cost of revenue, which together increased the proportion of revenue retained as gross profit.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.6%
Gross profit
$1.4M
Revenue
$2.2M
Cost of revenue
$795000
Quarter-over-quarter change
-3.7 pts
Year-over-year change
+22.3 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 | $2.6M | $1.5M | $1.0M | 59.7% |
| Dec 31, 2023 | $2.9M | $2.0M | $939000 | 67.7% |
| Mar 31, 2024 | $2.5M | $1.7M | $806000 | 67.3% |
| Jun 30, 2024 | $2.2M | $1.4M | $795000 | 63.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-3.7 pts
Year-over-year change
Jun 30, 2023
+22.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior year quarter is observable through the combination of higher revenue and lower cost of revenue, which together increased the proportion of revenue retained as gross profit.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the company's ability to sustain gross margin levels given its history of net losses and negative cash flows from operations as disclosed in the filing.