RK

Rocket Lab USA, Inc. stock research

Sep 30, 2024

FY2024 Q3

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

Revenue was slightly lower than the prior quarter, but gross profit improved and cost of revenue decreased, resulting in a higher gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue was slightly lower than the prior quarter, but gross profit improved and cost of revenue decreased, resulting in a higher gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher.

  • The gross margin improved because gross profit increased while cost of revenue decreased relative to the prior quarter. The improvement in gross profit outpaced the change in revenue, indicating a favorable shift in the relationship between revenue and cost of revenue.
  • Compared to the preceding quarter, gross margin was higher on slightly lower revenue, as cost of revenue decreased to a greater extent. Versus the same quarter one year earlier, all metrics were higher, with gross profit and gross margin showing notable strengthening.

Gross margin snapshot

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

Gross margin

26.7%

Gross profit

$28.0M

Revenue

$104.8M

Cost of revenue

$76.8M

Quarter-over-quarter change

+1.1 pts

Year-over-year change

+4.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Sep 30, 2024$104.8M$28.0M$76.8M26.7%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+1.1 pts

Year-over-year change

Sep 30, 2023

+4.6 pts

What the margin says

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

The gross margin improved because gross profit increased while cost of revenue decreased relative to the prior quarter. The improvement in gross profit outpaced the change in revenue, indicating a favorable shift in the relationship between revenue and cost of revenue.

Compared to the preceding quarter, gross margin was higher on slightly lower revenue, as cost of revenue decreased to a greater extent. Versus the same quarter one year earlier, all metrics were higher, with gross profit and gross margin showing notable strengthening.

Monitor whether cost of revenue continues to decline relative to revenue to sustain or further improve gross margin levels.