SoFi Technologies, Inc. stock research
FY2023 Q4
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit improved from the prior quarter but declined from the year-ago period. Cost of revenue rose in both comparisons, resulting in a gross margin that strengthened sequentially but weakened year over year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit improved from the prior quarter but declined from the year-ago period. Cost of revenue rose in both comparisons, resulting in a gross margin that strengthened sequentially but weakened year over year.
- The sequential improvement in gross margin was driven by a larger increase in revenue relative to the increase in cost of revenue. The year-over-year decline in gross margin was driven by a larger increase in cost of revenue relative to the increase in revenue.
- Compared to the prior quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter last year, gross margin weakened as cost of revenue grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
10.6%
Gross profit
$12.4M
Revenue
$116.3M
Cost of revenue
$103.9M
Quarter-over-quarter change
+4.3 pts
Year-over-year change
-8.5 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% |
| Dec 31, 2023 | $116.3M | $12.4M | $103.9M | 10.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+4.3 pts
Year-over-year change
Dec 31, 2022
-8.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a larger increase in revenue relative to the increase in cost of revenue. The year-over-year decline in gross margin was driven by a larger increase in cost of revenue relative to the increase in revenue.
Compared to the prior quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter last year, gross margin weakened as cost of revenue grew faster than revenue.
Monitor the trend in cost of revenue relative to revenue, as its faster growth year over year compressed gross margin.