SBA Communications Corporation stock research
FY2023 Q3
SBA Communications (SBAC) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both improved compared to the prior quarter and the same quarter last year. Cost of revenue declined, contributing to a stronger gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both improved compared to the prior quarter and the same quarter last year. Cost of revenue declined, contributing to a stronger gross margin.
- The most observable driver of gross margin improvement is the combination of higher revenue and lower cost of revenue relative to both comparison periods.
- Compared to the prior quarter, revenue turned positive and gross margin strengthened significantly. Versus the same quarter last year, revenue was lower but gross profit was higher, resulting in an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
1181.2%
Gross profit
$532.8M
Revenue
$45.1M
Cost of revenue
$149.8M
Quarter-over-quarter change
+1274.0 pts
Year-over-year change
+617.1 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% |
| Jun 30, 2023 | -$564.9M | $524.3M | $154.3M | -92.8% |
| Sep 30, 2023 | $45.1M | $532.8M | $149.8M | 1181.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1274.0 pts
Year-over-year change
Sep 30, 2022
+617.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin improvement is the combination of higher revenue and lower cost of revenue relative to both comparison periods.
Compared to the prior quarter, revenue turned positive and gross margin strengthened significantly. Versus the same quarter last year, revenue was lower but gross profit was higher, resulting in an improved gross margin.
Monitor the trend in cost of revenue, as its reduction was a key factor in the margin improvement.