Super Micro Computer, Inc. stock research
FY2024 Q4
Super Micro Computer (SMCI) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased while cost of revenue grew at a higher rate, leading to a decline in gross profit sequentially. Compared to the same quarter last year, gross profit rose but gross margin weakened.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q4
Revenue increased while cost of revenue grew at a higher rate, leading to a decline in gross profit sequentially. Compared to the same quarter last year, gross profit rose but gross margin weakened.
- The strongest observable driver is the disproportionate increase in cost of revenue relative to revenue, which compressed gross margin.
- Sequentially, gross margin declined from the prior quarter as cost of revenue increased more than revenue. Year over year, gross margin also decreased even though revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
10.2%
Gross profit
$546.0M
Revenue
$5.4B
Cost of revenue
$4.8B
Quarter-over-quarter change
-5.3 pts
Year-over-year change
-6.8 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $5.4B | $546.0M | $4.8B | 10.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-5.3 pts
Year-over-year change
Jun 30, 2023
-6.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the disproportionate increase in cost of revenue relative to revenue, which compressed gross margin.
Sequentially, gross margin declined from the prior quarter as cost of revenue increased more than revenue. Year over year, gross margin also decreased even though revenue was higher.
Monitor inventory levels and supply chain lead times, as noted in the filing, which influence working capital.