Vertiv Holdings Co stock research
FY2023 Q1
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin improved versus both the prior quarter and the year-ago quarter, reflecting a stronger relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin improved versus both the prior quarter and the year-ago quarter, reflecting a stronger relationship between revenue and cost of revenue.
- Gross margin strengthened sequentially and year-over-year, driven by a proportionally lower increase in cost of revenue relative to revenue growth.
- Compared to the immediately preceding quarter, revenue was lower but gross margin was higher, as cost of revenue declined more than revenue. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.6%
Gross profit
$495.5M
Revenue
$1.5B
Cost of revenue
$1.0B
Quarter-over-quarter change
n/a
Year-over-year change
+6.3 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.5B | $495.5M | $1.0B | 32.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+6.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially and year-over-year, driven by a proportionally lower increase in cost of revenue relative to revenue growth.
Compared to the immediately preceding quarter, revenue was lower but gross margin was higher, as cost of revenue declined more than revenue. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess margin sustainability.