Rocket Lab USA, Inc. stock research
FY2023 Q3
Rocket Lab USA (RKLB) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose while cost of revenue grew at a slower pace than revenue, resulting in a gross margin that improved year-over-year but weakened slightly from the prior quarter.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose while cost of revenue grew at a slower pace than revenue, resulting in a gross margin that improved year-over-year but weakened slightly from the prior quarter.
- The year-over-year improvement in gross margin was the most notable change, driven by a larger increase in gross profit relative to cost of revenue. The sequential weakening in gross margin was modest, as cost of revenue grew slightly faster than revenue.
- Compared to the prior quarter, revenue was higher and gross profit was higher, but cost of revenue increased more, leading to a slightly lower gross margin. Versus the same quarter last year, revenue was higher, gross profit was substantially higher, and cost of revenue was lower, resulting in a significantly improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.1%
Gross profit
$15.0M
Revenue
$67.7M
Cost of revenue
$52.7M
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+8.7 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 | $54.9M | $6.4M | $48.5M | 11.6% |
| Jun 30, 2023 | $62.0M | $14.6M | $47.5M | 23.5% |
| Sep 30, 2023 | $67.7M | $15.0M | $52.7M | 22.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-1.4 pts
Year-over-year change
Sep 30, 2022
+8.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was the most notable change, driven by a larger increase in gross profit relative to cost of revenue. The sequential weakening in gross margin was modest, as cost of revenue grew slightly faster than revenue.
Compared to the prior quarter, revenue was higher and gross profit was higher, but cost of revenue increased more, leading to a slightly lower gross margin. Versus the same quarter last year, revenue was higher, gross profit was substantially higher, and cost of revenue was lower, resulting in a significantly improved gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influenced the sequential gross margin change.