RK

Rocket Lab USA, Inc. stock research

Mar 31, 2024

FY2024 Q1

Rocket Lab USA (RKLB) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue also rose over both periods, while gross margin improved slightly from the prior quarter and strengthened notably from the year-ago quarter.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue also rose over both periods, while gross margin improved slightly from the prior quarter and strengthened notably from the year-ago quarter.

  • The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew faster than cost of revenue relative to the prior quarter, leading to a modest gross margin improvement. Compared to the year-ago quarter, the margin gain was more pronounced, driven by a larger proportional increase in gross profit relative to cost of revenue.
  • Gross margin was slightly higher than the immediately preceding quarter and substantially higher than the same quarter one year earlier. Revenue and gross profit both increased sequentially and year-over-year, while cost of revenue also rose in both comparisons.

Gross margin snapshot

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

Gross margin

26.1%

Gross profit

$24.2M

Revenue

$92.8M

Cost of revenue

$68.6M

Quarter-over-quarter change

+0.2 pts

Year-over-year change

+14.5 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$62.0M$14.6M$47.5M23.5%
Sep 30, 2023$67.7M$15.0M$52.7M22.1%
Dec 31, 2023$60.0M$15.5M$44.5M25.8%
Mar 31, 2024$92.8M$24.2M$68.6M26.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

+0.2 pts

Year-over-year change

Mar 31, 2023

+14.5 pts

What the margin says

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

The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew faster than cost of revenue relative to the prior quarter, leading to a modest gross margin improvement. Compared to the year-ago quarter, the margin gain was more pronounced, driven by a larger proportional increase in gross profit relative to cost of revenue.

Gross margin was slightly higher than the immediately preceding quarter and substantially higher than the same quarter one year earlier. Revenue and gross profit both increased sequentially and year-over-year, while cost of revenue also rose in both comparisons.

Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influences gross margin stability.