RK

Rocket Lab USA, Inc. stock research

Mar 31, 2023

FY2023 Q1

Rocket Lab USA (RKLB) Gross Margin — Quarter Ended Mar 31, 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 last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

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 last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.

  • The gross margin strengthened from the prior quarter and improved from the year-ago quarter, driven by a combination of higher revenue and a lower cost of revenue relative to the prior quarter. The most observable driver is the reduction in cost of revenue compared to the immediately preceding quarter.
  • Compared to the prior quarter, revenue was higher, cost of revenue was lower, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

11.6%

Gross profit

$6.4M

Revenue

$54.9M

Cost of revenue

$48.5M

Quarter-over-quarter change

n/a

Year-over-year change

+2.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$54.9M$6.4M$48.5M11.6%

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

+2.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin strengthened from the prior quarter and improved from the year-ago quarter, driven by a combination of higher revenue and a lower cost of revenue relative to the prior quarter. The most observable driver is the reduction in cost of revenue compared to the immediately preceding quarter.

Compared to the prior quarter, revenue was higher, cost of revenue was lower, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin improved.

Monitor the trajectory of cost of revenue relative to revenue, as its decline contributed to the margin improvement this quarter.