Vertiv Holdings Co stock research
FY2024 Q1
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Mar 31, 2024
Revenue, gross profit, and gross margin all improved compared to the same quarter one year earlier, but gross margin weakened from the immediately preceding quarter. The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew faster than cost of revenue year over year, while sequentially cost of revenue declined less than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue, gross profit, and gross margin all improved compared to the same quarter one year earlier, but gross margin weakened from the immediately preceding quarter. The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew faster than cost of revenue year over year, while sequentially cost of revenue declined less than revenue.
- The strongest observable margin driver is the year-over-year improvement in gross margin, which rose from the prior year quarter level. This is supported by gross profit growing faster than cost of revenue on a year-over-year basis.
- Compared to the immediately preceding quarter, gross margin was lower, as revenue and gross profit both decreased while cost of revenue declined less proportionally. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit increasing and cost of revenue rising at a slower pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.6%
Gross profit
$566.4M
Revenue
$1.6B
Cost of revenue
$1.1B
Quarter-over-quarter change
-2.1 pts
Year-over-year change
+2.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $1.6B | $566.4M | $1.1B | 34.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-2.1 pts
Year-over-year change
Mar 31, 2023
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, which rose from the prior year quarter level. This is supported by gross profit growing faster than cost of revenue on a year-over-year basis.
Compared to the immediately preceding quarter, gross margin was lower, as revenue and gross profit both decreased while cost of revenue declined less proportionally. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit increasing and cost of revenue rising at a slower pace.
Monitor the trend in cost of revenue relative to revenue, as the sequential decline in cost of revenue was less than the decline in revenue, pressuring gross margin.