SoFi Technologies, Inc. stock research
FY2023 Q1
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased compared to the prior quarter, while gross profit declined more sharply, causing gross margin to weaken. Cost of revenue was higher than the year-ago quarter, but gross profit improved, leading to a stronger gross margin year over year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased compared to the prior quarter, while gross profit declined more sharply, causing gross margin to weaken. Cost of revenue was higher than the year-ago quarter, but gross profit improved, leading to a stronger gross margin year over year.
- The relationship between revenue and cost of revenue drove the gross margin change. In the current quarter, cost of revenue consumed a larger share of revenue compared to the prior quarter, compressing gross profit and margin.
- Compared to the immediately preceding quarter, gross margin weakened as revenue was lower and cost of revenue was higher. Compared to the same quarter one year earlier, gross margin improved, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.1%
Gross profit
$11.6M
Revenue
$95.5M
Cost of revenue
$83.9M
Quarter-over-quarter change
n/a
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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $95.5M | $11.6M | $83.9M | 12.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin change. In the current quarter, cost of revenue consumed a larger share of revenue compared to the prior quarter, compressing gross profit and margin.
Compared to the immediately preceding quarter, gross margin weakened as revenue was lower and cost of revenue was higher. Compared to the same quarter one year earlier, gross margin improved, with revenue and gross profit both higher.
Monitor the trend in cost of revenue relative to revenue, as its increase outpaced revenue changes in the current quarter.