Vertiv Holdings Co stock research
FY2023 Q3
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue was roughly unchanged, leading to a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit both increased, cost of revenue was higher, and gross margin strengthened.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue was roughly unchanged, leading to a higher gross margin. Compared to the same quarter one year earlier, revenue and gross profit both increased, cost of revenue was higher, and gross margin strengthened.
- The gross margin improvement from the prior quarter and the year-ago quarter was driven by a larger increase in gross profit relative to revenue, with cost of revenue growing more slowly than revenue on a year-over-year basis.
- Compared to the prior quarter, gross margin was higher as gross profit increased while revenue was stable. Versus the same quarter last year, gross margin was higher, with revenue and gross profit both higher and cost of revenue also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.0%
Gross profit
$627.6M
Revenue
$1.7B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+7.0 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% |
| Sep 30, 2023 | $1.7B | $627.6M | $1.1B | 36.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.8 pts
Year-over-year change
Sep 30, 2022
+7.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter and the year-ago quarter was driven by a larger increase in gross profit relative to revenue, with cost of revenue growing more slowly than revenue on a year-over-year basis.
Compared to the prior quarter, gross margin was higher as gross profit increased while revenue was stable. Versus the same quarter last year, gross margin was higher, with revenue and gross profit both higher and cost of revenue also higher.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influences gross margin sustainability.