Vertiv Holdings Co stock research
FY2023 Q4
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Dec 31, 2023
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. As a result, gross margin improved on both comparisons, rising from the prior quarter and from the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. As a result, gross margin improved on both comparisons, rising from the prior quarter and from the year-ago period.
- The relationship between revenue and cost of revenue shifted favorably: revenue grew faster than cost of revenue, allowing gross profit to expand and gross margin to strengthen. This pattern held against both the prior quarter and the year-ago quarter.
- Current gross margin was higher than the immediately preceding quarter and substantially higher than the same quarter one year earlier. Revenue, gross profit, and cost of revenue all increased in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.6%
Gross profit
$683.4M
Revenue
$1.9B
Cost of revenue
$1.2B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+5.7 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% |
| Sep 30, 2023 | $1.7B | $627.6M | $1.1B | 36.0% |
| Dec 31, 2023 | $1.9B | $683.4M | $1.2B | 36.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.6 pts
Year-over-year change
Dec 31, 2022
+5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue shifted favorably: revenue grew faster than cost of revenue, allowing gross profit to expand and gross margin to strengthen. This pattern held against both the prior quarter and the year-ago quarter.
Current gross margin was higher than the immediately preceding quarter and substantially higher than the same quarter one year earlier. Revenue, gross profit, and cost of revenue all increased in both comparisons.
Monitor whether revenue growth continues to outpace cost-of-revenue growth, as that dynamic directly supports gross margin expansion.