SM

Super Micro Computer, Inc. stock research

Mar 31, 2023

FY2023 Q3

Super Micro Computer (SMCI) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q3

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.

  • The strongest observable margin driver is the gross margin level itself, which improved relative to the year-ago quarter despite a lower revenue base.
  • Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was lower, gross profit was higher, cost of revenue was lower, and gross margin improved.

Gross margin snapshot

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

Gross margin

17.6%

Gross profit

$226.4M

Revenue

$1.3B

Cost of revenue

$1.1B

Quarter-over-quarter change

n/a

Year-over-year change

+2.1 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$1.3B$226.4M$1.1B17.6%

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

+2.1 pts

What the margin says

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

The strongest observable margin driver is the gross margin level itself, which improved relative to the year-ago quarter despite a lower revenue base.

Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was lower, gross profit was higher, cost of revenue was lower, and gross margin improved.

Monitor the trend in gross margin relative to revenue changes in upcoming quarters.