SBA Communications Corporation stock research
FY2023 Q1
SBA Communications (SBAC) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased compared to the prior quarter while gross profit was slightly lower, and cost of revenue declined. Gross margin improved relative to both the preceding quarter and the same quarter one year earlier, reflecting a favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased compared to the prior quarter while gross profit was slightly lower, and cost of revenue declined. Gross margin improved relative to both the preceding quarter and the same quarter one year earlier, reflecting a favorable relationship between revenue and cost of revenue.
- The strongest observable margin driver is the decline in cost of revenue relative to revenue, which supported gross margin expansion despite lower revenue.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was slightly lower, but cost of revenue decreased more sharply, leading to a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.7%
Gross profit
$511.2M
Revenue
$675.5M
Cost of revenue
$164.3M
Quarter-over-quarter change
n/a
Year-over-year change
+0.4 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 | $675.5M | $511.2M | $164.3M | 75.7% |
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
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in cost of revenue relative to revenue, which supported gross margin expansion despite lower revenue.
Compared to the immediately preceding quarter, revenue was lower and gross profit was slightly lower, but cost of revenue decreased more sharply, leading to a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement can be sustained.