SM

Super Micro Computer, Inc. stock research

Sep 30, 2024

FY2025 Q1

Super Micro Computer (SMCI) Gross Margin — Quarter Ended Sep 30, 2024

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose in both comparisons. Cost of revenue grew in tandem, and gross margin improved from the prior quarter but was lower than the year-ago level.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2025 Q1

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose in both comparisons. Cost of revenue grew in tandem, and gross margin improved from the prior quarter but was lower than the year-ago level.

  • Gross margin strengthened sequentially, moving from a lower level in the prior quarter to a higher level in the current quarter. The year-over-year comparison shows a decline, indicating that the margin has not returned to the level seen one year earlier.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.

Gross margin snapshot

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

Gross margin

13.1%

Gross profit

$775.6M

Revenue

$5.9B

Cost of revenue

$5.2B

Quarter-over-quarter change

+2.9 pts

Year-over-year change

-3.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$3.7B$564.3M$3.1B15.4%
Mar 31, 2024$3.9B$597.4M$3.3B15.5%
Jun 30, 2024$5.4B$546.0M$4.8B10.2%
Sep 30, 2024$5.9B$775.6M$5.2B13.1%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+2.9 pts

Year-over-year change

Sep 30, 2023

-3.6 pts

What the margin says

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

Gross margin strengthened sequentially, moving from a lower level in the prior quarter to a higher level in the current quarter. The year-over-year comparison shows a decline, indicating that the margin has not returned to the level seen one year earlier.

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

Monitor the trajectory of gross margin relative to the year-ago level, as the current quarter's margin remains below that benchmark despite sequential improvement.