SM

Super Micro Computer, Inc. stock research

Jun 30, 2023

FY2023 Q4

Super Micro Computer (SMCI) Gross Margin — Quarter Ended Jun 30, 2023

Revenue grew substantially compared with both the prior quarter and the same quarter a year earlier. Gross profit also rose, but cost of revenue increased at a faster pace, resulting in a slightly lower gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q4

Revenue grew substantially compared with both the prior quarter and the same quarter a year earlier. Gross profit also rose, but cost of revenue increased at a faster pace, resulting in a slightly lower gross margin.

  • The gross margin weakened sequentially and year-over-year, as cost of revenue consumed a larger share of total revenue.
  • Sequentially, revenue rose markedly while gross margin edged lower; compared with the same quarter last year, revenue also increased and gross margin was slightly below the prior-year level.

Gross margin snapshot

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

Gross margin

17.0%

Gross profit

$371.7M

Revenue

$2.2B

Cost of revenue

$1.8B

Quarter-over-quarter change

-0.6 pts

Year-over-year change

-0.6 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%
Jun 30, 2023$2.2B$371.7M$1.8B17.0%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

-0.6 pts

Year-over-year change

Jun 30, 2022

-0.6 pts

What the margin says

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

The gross margin weakened sequentially and year-over-year, as cost of revenue consumed a larger share of total revenue.

Sequentially, revenue rose markedly while gross margin edged lower; compared with the same quarter last year, revenue also increased and gross margin was slightly below the prior-year level.

Monitor the relationship between cost of revenue growth and revenue growth, as well as supply chain conditions noted in the filing that may affect cost trends.

SMCI Gross Margin — Quarter Ended Jun 30, 2023