SB

SBA Communications Corporation stock research

Sep 30, 2024

FY2024 Q3

SBA Communications (SBAC) Gross Margin — Quarter Ended Sep 30, 2024

Revenue and gross profit both moved lower compared with both the prior quarter and the same quarter last year, while cost of revenue increased relative to the prior quarter but was slightly lower than the year-ago quarter. Gross margin improved significantly versus the prior quarter and was moderately higher than the year-ago quarter, reflecting a tighter relationship between cost and revenue.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue and gross profit both moved lower compared with both the prior quarter and the same quarter last year, while cost of revenue increased relative to the prior quarter but was slightly lower than the year-ago quarter. Gross margin improved significantly versus the prior quarter and was moderately higher than the year-ago quarter, reflecting a tighter relationship between cost and revenue.

  • The gross margin for this quarter exceeded both comparison periods, resulting from the combination of revenue and cost of revenue moving in opposite directions relative to gross profit.
  • Compared with the prior quarter, revenue turned positive from negative and gross margin strengthened markedly, though gross profit was slightly lower. Versus the same quarter a year ago, revenue and gross profit were both lower, but gross margin improved.

Gross margin snapshot

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

Gross margin

1234.6%

Gross profit

$517.3M

Revenue

$41.9M

Cost of revenue

$150.3M

Quarter-over-quarter change

+1321.9 pts

Year-over-year change

+53.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$45.1M$532.8M$149.8M1181.2%
Mar 31, 2024$657.9M$519.9M$138.0M79.0%
Jun 30, 2024-$594.3M$519.2M$141.3M-87.4%
Sep 30, 2024$41.9M$517.3M$150.3M1234.6%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+1321.9 pts

Year-over-year change

Sep 30, 2023

+53.3 pts

What the margin says

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

The gross margin for this quarter exceeded both comparison periods, resulting from the combination of revenue and cost of revenue moving in opposite directions relative to gross profit.

Compared with the prior quarter, revenue turned positive from negative and gross margin strengthened markedly, though gross profit was slightly lower. Versus the same quarter a year ago, revenue and gross profit were both lower, but gross margin improved.

Monitor the trend in cost of revenue relative to revenue, as the relationship shifted notably this quarter.

SBAC Gross Margin — Quarter Ended Sep 30, 2024