SoFi Technologies, Inc. stock research
FY2024 Q1
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was nearly flat compared to the prior quarter, while gross profit improved and cost of revenue declined, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit both increased, and gross margin strengthened as cost of revenue grew at a slower pace than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was nearly flat compared to the prior quarter, while gross profit improved and cost of revenue declined, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit both increased, and gross margin strengthened as cost of revenue grew at a slower pace than revenue.
- The strongest observable margin driver was the reduction in cost of revenue relative to revenue, which directly improved gross profit and gross margin.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased while revenue held steady. Versus the same quarter a year ago, gross margin was higher, supported by revenue growth outpacing cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.4%
Gross profit
$15.5M
Revenue
$115.6M
Cost of revenue
$100.1M
Quarter-over-quarter change
+2.8 pts
Year-over-year change
+1.3 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $115.6M | $15.5M | $100.1M | 13.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.8 pts
Year-over-year change
Mar 31, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue relative to revenue, which directly improved gross profit and gross margin.
Compared to the prior quarter, gross margin improved as cost of revenue decreased while revenue held steady. Versus the same quarter a year ago, gross margin was higher, supported by revenue growth outpacing cost of revenue growth.
Monitor the trend in cost of revenue relative to revenue, as its movement has been the primary factor influencing gross margin changes.