VI

VICI Properties Inc. stock research

Sep 30, 2023

FY2023 Q3

VICI Properties (VICI) Gross Margin — Quarter Ended Sep 30, 2023

Revenue and gross profit both increased compared with the previous quarter and the same quarter one year earlier. Cost of revenue changed only slightly, so the gross margin remained stable at the same level in all three periods.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue and gross profit both increased compared with the previous quarter and the same quarter one year earlier. Cost of revenue changed only slightly, so the gross margin remained stable at the same level in all three periods.

  • The gross margin of over ninety-nine percent indicates that cost of revenue is a very small portion of revenue. The absolute increase in gross profit closely tracked the absolute increase in revenue, showing that margin was unaffected by the small changes in cost.
  • Compared with the immediately preceding quarter, revenue and gross profit were slightly higher while cost of revenue was slightly lower, leaving gross margin unchanged. Versus the same quarter one year earlier, revenue and gross profit were substantially higher while cost of revenue was also higher, but the gross margin was again unchanged.

Gross margin snapshot

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

Gross margin

99.3%

Gross profit

$898.0M

Revenue

$904.3M

Cost of revenue

$6.3M

Quarter-over-quarter change

+0.0 pts

Year-over-year change

-0.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$877.6M$871.7M$6.0M99.3%
Jun 30, 2023$898.2M$891.6M$6.6M99.3%
Sep 30, 2023$904.3M$898.0M$6.3M99.3%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

+0.0 pts

Year-over-year change

Sep 30, 2022

-0.0 pts

What the margin says

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

The gross margin of over ninety-nine percent indicates that cost of revenue is a very small portion of revenue. The absolute increase in gross profit closely tracked the absolute increase in revenue, showing that margin was unaffected by the small changes in cost.

Compared with the immediately preceding quarter, revenue and gross profit were slightly higher while cost of revenue was slightly lower, leaving gross margin unchanged. Versus the same quarter one year earlier, revenue and gross profit were substantially higher while cost of revenue was also higher, but the gross margin was again unchanged.

Monitor whether cost of revenue remains at a nominal level relative to revenue, as any material increase could compress the current gross margin.