RK

Rocket Lab USA, Inc. stock research

Jun 30, 2024

FY2024 Q2

Rocket Lab USA (RKLB) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew faster than cost of revenue compared to the same quarter last year, supporting margin improvement. Compared to the prior quarter, cost of revenue grew at a slightly faster pace than revenue, leading to a marginal weakening in gross margin.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.

Gross margin snapshot

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

Gross margin

25.6%

Gross profit

$27.2M

Revenue

$106.3M

Cost of revenue

$79.1M

Quarter-over-quarter change

-0.5 pts

Year-over-year change

+2.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Jun 30, 2024$106.3M$27.2M$79.1M25.6%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-0.5 pts

Year-over-year change

Jun 30, 2023

+2.0 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 and cost of revenue; revenue grew faster than cost of revenue compared to the same quarter last year, supporting margin improvement. Compared to the prior quarter, cost of revenue grew at a slightly faster pace than revenue, leading to a marginal weakening in gross margin.

Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.

Monitor the trend in cost of revenue relative to revenue, as its growth rate influenced the gross margin movement between quarters.