Vertiv Holdings Co stock research
FY2023 Q2
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved versus both comparison periods, reflecting a stronger relationship between gross profit and revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved versus both comparison periods, reflecting a stronger relationship between gross profit and revenue.
- Gross margin expansion was supported by gross profit growing faster than revenue relative to the prior quarter and the year-ago quarter.
- Sequentially, revenue and gross profit were higher, with gross margin improving. Compared with the same quarter a year earlier, revenue and gross profit were also higher, and gross margin strengthened notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.3%
Gross profit
$594.0M
Revenue
$1.7B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+7.7 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% |
| Jun 30, 2023 | $1.7B | $594.0M | $1.1B | 34.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.7 pts
Year-over-year change
Jun 30, 2022
+7.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin expansion was supported by gross profit growing faster than revenue relative to the prior quarter and the year-ago quarter.
Sequentially, revenue and gross profit were higher, with gross margin improving. Compared with the same quarter a year earlier, revenue and gross profit were also higher, and gross margin strengthened notably.
Monitor whether cost of revenue continues to rise at a slower pace than revenue to sustain gross margin improvement.