VI

VICI Properties Inc. stock research

Dec 31, 2023

FY2023 Q4

VICI Properties (VICI) Gross Margin — Quarter Ended Dec 31, 2023

Revenue and gross profit both increased from the previous quarter and from the same quarter one year earlier, while cost of revenue also rose compared with both periods. Gross margin remained at a very high level, though it showed a slight decline sequentially.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue and gross profit both increased from the previous quarter and from the same quarter one year earlier, while cost of revenue also rose compared with both periods. Gross margin remained at a very high level, though it showed a slight decline sequentially.

  • The strongest observable margin driver is the sustained high gross margin, which has remained at nearly the same level across all three reported quarters, indicating consistent cost relative to revenue. The slight sequential weakening in margin is attributable to a larger increase in cost of revenue compared with the rise in gross profit.
  • Compared with the immediately preceding quarter, revenue and gross profit were higher, while gross margin was slightly lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, and gross margin was marginally lower.

Gross margin snapshot

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

Gross margin

99.1%

Gross profit

$923.6M

Revenue

$931.9M

Cost of revenue

$8.2M

Quarter-over-quarter change

-0.2 pts

Year-over-year change

-0.1 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%
Dec 31, 2023$931.9M$923.6M$8.2M99.1%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-0.2 pts

Year-over-year change

Dec 31, 2022

-0.1 pts

What the margin says

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

The strongest observable margin driver is the sustained high gross margin, which has remained at nearly the same level across all three reported quarters, indicating consistent cost relative to revenue. The slight sequential weakening in margin is attributable to a larger increase in cost of revenue compared with the rise in gross profit.

Compared with the immediately preceding quarter, revenue and gross profit were higher, while gross margin was slightly lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, and gross margin was marginally lower.

Monitor the trajectory of cost of revenue, as it increased both quarter over quarter and year over year, and changes in this item have a direct effect on gross margin.