SoFi Technologies, Inc. stock research
FY2023 Q3
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue remained relatively stable compared to the prior quarter and was slightly higher than the same quarter last year. However, gross profit declined and gross margin weakened due to a larger increase in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue remained relatively stable compared to the prior quarter and was slightly higher than the same quarter last year. However, gross profit declined and gross margin weakened due to a larger increase in cost of revenue relative to revenue.
- The primary observable driver was the increase in cost of revenue, which rose faster than revenue, resulting in lower gross profit and margin.
- Compared to the prior quarter, gross margin weakened as cost of revenue increased while revenue was nearly unchanged. Year over year, gross margin also weakened as cost of revenue grew more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
6.4%
Gross profit
$6.7M
Revenue
$104.9M
Cost of revenue
$98.3M
Quarter-over-quarter change
-4.0 pts
Year-over-year change
-12.2 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% |
| Jun 30, 2023 | $104.7M | $10.8M | $93.9M | 10.3% |
| Sep 30, 2023 | $104.9M | $6.7M | $98.3M | 6.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-4.0 pts
Year-over-year change
Sep 30, 2022
-12.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver was the increase in cost of revenue, which rose faster than revenue, resulting in lower gross profit and margin.
Compared to the prior quarter, gross margin weakened as cost of revenue increased while revenue was nearly unchanged. Year over year, gross margin also weakened as cost of revenue grew more than revenue.
Monitor the trend in cost of revenue, which has been increasing in absolute terms and relative to revenue.