VI

VICI Properties Inc. stock research

Mar 31, 2024

FY2024 Q1

VICI Properties (VICI) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both increased versus the prior quarter and the same quarter last year, while cost of revenue decreased sequentially but increased year-over-year. Gross margin improved slightly from the previous quarter and matched the year-ago level.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit both increased versus the prior quarter and the same quarter last year, while cost of revenue decreased sequentially but increased year-over-year. Gross margin improved slightly from the previous quarter and matched the year-ago level.

  • Gross margin remained extremely high in all periods, with the current quarter showing a marginal sequential improvement from the prior quarter. The primary observable driver of gross profit growth is the increase in revenue, as cost of revenue represents a very small fraction of revenue.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable.

Gross margin snapshot

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

Gross margin

99.3%

Gross profit

$945.0M

Revenue

$951.5M

Cost of revenue

$6.5M

Quarter-over-quarter change

+0.2 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
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%
Mar 31, 2024$951.5M$945.0M$6.5M99.3%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

+0.2 pts

Year-over-year change

Mar 31, 2023

-0.0 pts

What the margin says

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

Gross margin remained extremely high in all periods, with the current quarter showing a marginal sequential improvement from the prior quarter. The primary observable driver of gross profit growth is the increase in revenue, as cost of revenue represents a very small fraction of revenue.

Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable.

Monitor the absolute level of cost of revenue, as even small changes could affect the already thin cost base relative to revenue.