SB

SBA Communications Corporation stock research

Jun 30, 2023

FY2023 Q2

SBA Communications (SBAC) Gross Margin — Quarter Ended Jun 30, 2023

In the current quarter, revenue was negative while cost of revenue remained positive, resulting in a negative gross margin. Gross profit was positive, but the negative revenue base caused the gross margin to be negative.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

In the current quarter, revenue was negative while cost of revenue remained positive, resulting in a negative gross margin. Gross profit was positive, but the negative revenue base caused the gross margin to be negative.

  • The strongest observable margin driver is the shift in revenue from positive to negative sequentially, which directly inverted the gross margin. A concrete item to monitor is the sign of revenue in upcoming quarters.
  • Compared to the immediately preceding quarter, revenue turned from positive to negative and gross margin moved from positive to negative. Compared to the same quarter one year earlier, both periods had negative revenue and negative gross margin, but the current quarter's gross margin was less negative.

Gross margin snapshot

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

Gross margin

-92.8%

Gross profit

$524.3M

Revenue

-$564.9M

Cost of revenue

$154.3M

Quarter-over-quarter change

-168.5 pts

Year-over-year change

+6.9 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$675.5M$511.2M$164.3M75.7%
Jun 30, 2023-$564.9M$524.3M$154.3M-92.8%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

-168.5 pts

Year-over-year change

Jun 30, 2022

+6.9 pts

What the margin says

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

The strongest observable margin driver is the shift in revenue from positive to negative sequentially, which directly inverted the gross margin. A concrete item to monitor is the sign of revenue in upcoming quarters.

Compared to the immediately preceding quarter, revenue turned from positive to negative and gross margin moved from positive to negative. Compared to the same quarter one year earlier, both periods had negative revenue and negative gross margin, but the current quarter's gross margin was less negative.

Monitor whether revenue returns to positive levels in subsequent quarters.