Super Micro Computer, Inc. stock research
FY2024 Q3
Super Micro Computer (SMCI) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin was essentially stable, showing a slight improvement from the previous quarter but remaining lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin was essentially stable, showing a slight improvement from the previous quarter but remaining lower than the same quarter one year earlier.
- The strongest observable driver of gross margin was the relationship between revenue growth and cost of revenue growth; revenue increased at a slightly faster pace than cost of revenue compared to the prior quarter, leading to a marginal improvement in margin.
- Compared to the immediately preceding quarter, gross margin improved modestly. Compared to the same quarter one year earlier, gross margin was lower, as cost of revenue grew more rapidly relative to revenue over that period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.5%
Gross profit
$597.4M
Revenue
$3.9B
Cost of revenue
$3.3B
Quarter-over-quarter change
+0.1 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.2B | $371.7M | $1.8B | 17.0% |
| Sep 30, 2023 | $2.1B | $353.7M | $1.8B | 16.7% |
| Dec 31, 2023 | $3.7B | $564.3M | $3.1B | 15.4% |
| Mar 31, 2024 | $3.9B | $597.4M | $3.3B | 15.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.1 pts
Year-over-year change
Mar 31, 2023
-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 was the relationship between revenue growth and cost of revenue growth; revenue increased at a slightly faster pace than cost of revenue compared to the prior quarter, leading to a marginal improvement in margin.
Compared to the immediately preceding quarter, gross margin improved modestly. Compared to the same quarter one year earlier, gross margin was lower, as cost of revenue grew more rapidly relative to revenue over that period.
Monitor the trajectory of cost of revenue relative to revenue, as any shift in this relationship could materially affect gross margin.