D-Wave Quantum Inc. stock research
FY2024 Q3
D-Wave Quantum (QBTS) Gross Margin — Quarter Ended Sep 30, 2024
Revenue fell compared to both the prior quarter and the year-ago period, while cost of revenue decreased less than revenue year-over-year and increased sequentially. Consequently, gross profit declined and gross margin weakened.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue fell compared to both the prior quarter and the year-ago period, while cost of revenue decreased less than revenue year-over-year and increased sequentially. Consequently, gross profit declined and gross margin weakened.
- The primary observable driver of the margin change was the relative movement of cost of revenue: it held steady sequentially despite a drop in revenue, and declined less proportionally than revenue year-over-year.
- Sequentially, gross margin weakened from the prior quarter. Year-over-year, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.8%
Gross profit
$1.0M
Revenue
$1.9M
Cost of revenue
$827000
Quarter-over-quarter change
-7.8 pts
Year-over-year change
-3.9 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 | $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% |
| Sep 30, 2024 | $1.9M | $1.0M | $827000 | 55.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-7.8 pts
Year-over-year change
Sep 30, 2023
-3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change was the relative movement of cost of revenue: it held steady sequentially despite a drop in revenue, and declined less proportionally than revenue year-over-year.
Sequentially, gross margin weakened from the prior quarter. Year-over-year, gross margin was also lower.
Given the company's expectation of continued operating losses and expansion of commercial operations, the trajectory of cost of revenue relative to revenue should be monitored.