SBA Communications Corporation stock research
FY2024 Q1
SBA Communications (SBAC) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased compared to the prior quarter, while gross profit also declined but at a slower rate, causing gross margin to improve slightly. Relative to the same quarter a year ago, revenue was slightly lower, but cost of revenue decreased more sharply, leading to a higher gross profit and a stronger gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue decreased compared to the prior quarter, while gross profit also declined but at a slower rate, causing gross margin to improve slightly. Relative to the same quarter a year ago, revenue was slightly lower, but cost of revenue decreased more sharply, leading to a higher gross profit and a stronger gross margin.
- The reduction in cost of revenue, both sequentially and year-over-year, is the strongest observable driver supporting gross margin expansion. Revenue experienced a modest decline, but the proportion of cost absorbed by revenue improved significantly.
- Compared to the immediate prior quarter, revenue and gross profit were both lower, but the decrease in cost of revenue led to a slightly improved gross margin. Compared to the same quarter one year earlier, revenue was slightly lower, yet a larger reduction in cost of revenue produced higher gross profit and a meaningfully higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.0%
Gross profit
$519.9M
Revenue
$657.9M
Cost of revenue
$138.0M
Quarter-over-quarter change
-1102.2 pts
Year-over-year change
+3.3 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% |
| Mar 31, 2024 | $657.9M | $519.9M | $138.0M | 79.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1102.2 pts
Year-over-year change
Mar 31, 2023
+3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue, both sequentially and year-over-year, is the strongest observable driver supporting gross margin expansion. Revenue experienced a modest decline, but the proportion of cost absorbed by revenue improved significantly.
Compared to the immediate prior quarter, revenue and gross profit were both lower, but the decrease in cost of revenue led to a slightly improved gross margin. Compared to the same quarter one year earlier, revenue was slightly lower, yet a larger reduction in cost of revenue produced higher gross profit and a meaningfully higher gross margin.
Monitor the trajectory of cost of revenue, as its magnitude relative to revenue has been the primary driver of gross margin changes.