D-Wave Quantum Inc. stock research
FY2024 Q4
D-Wave Quantum (QBTS) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both rose compared to the prior quarter, while cost of revenue was nearly flat, leading to an improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was also lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both rose compared to the prior quarter, while cost of revenue was nearly flat, leading to an improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was also lower, and gross margin weakened.
- The strongest observable margin driver is the relationship between revenue growth and stable cost of revenue, which allowed gross profit to increase at a faster rate than costs. This indicates that revenue expansion outpaced cost changes in the current quarter.
- Compared to the immediately preceding quarter, gross margin improved as revenue increased more than cost of revenue. Compared to the same quarter one year earlier, gross margin weakened as revenue declined while cost of revenue decreased by a smaller proportion.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.8%
Gross profit
$1.5M
Revenue
$2.3M
Cost of revenue
$836000
Quarter-over-quarter change
+8.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $2.3M | $1.5M | $836000 | 63.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+8.0 pts
Year-over-year change
Dec 31, 2023
-3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and stable cost of revenue, which allowed gross profit to increase at a faster rate than costs. This indicates that revenue expansion outpaced cost changes in the current quarter.
Compared to the immediately preceding quarter, gross margin improved as revenue increased more than cost of revenue. Compared to the same quarter one year earlier, gross margin weakened as revenue declined while cost of revenue decreased by a smaller proportion.
Monitor whether cost of revenue remains stable as revenue changes, given its direct impact on gross margin variability.