Super Micro Computer, Inc. stock research
FY2024 Q1
Super Micro Computer (SMCI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue decreased from the prior quarter while cost of revenue remained stable, causing gross profit to decline and gross margin to weaken slightly. Compared to the same quarter last year, revenue and gross profit were higher, but gross margin was lower due to a proportionally larger increase in cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q1
Revenue decreased from the prior quarter while cost of revenue remained stable, causing gross profit to decline and gross margin to weaken slightly. Compared to the same quarter last year, revenue and gross profit were higher, but gross margin was lower due to a proportionally larger increase in cost of revenue.
- The strongest observable driver of gross margin change is the relationship between revenue and cost of revenue: revenue declined from the prior quarter while cost of revenue held steady, compressing margin. Compared to a year ago, revenue grew but cost of revenue grew faster, also pressuring margin.
- Gross margin weakened sequentially from the prior quarter and weakened compared to the same quarter last year. Revenue and gross profit were lower than the prior quarter but higher than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.7%
Gross profit
$353.7M
Revenue
$2.1B
Cost of revenue
$1.8B
Quarter-over-quarter change
-0.3 pts
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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.3B | $226.4M | $1.1B | 17.6% |
| Jun 30, 2023 | $2.2B | $371.7M | $1.8B | 17.0% |
| Sep 30, 2023 | $2.1B | $353.7M | $1.8B | 16.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.3 pts
Year-over-year change
Sep 30, 2022
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin change is the relationship between revenue and cost of revenue: revenue declined from the prior quarter while cost of revenue held steady, compressing margin. Compared to a year ago, revenue grew but cost of revenue grew faster, also pressuring margin.
Gross margin weakened sequentially from the prior quarter and weakened compared to the same quarter last year. Revenue and gross profit were lower than the prior quarter but higher than the year-ago quarter.
Monitor the trend in cost of revenue relative to revenue, as its proportion increased both sequentially and year-over-year.