Vertiv Holdings Co stock research
FY2024 Q2
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Jun 30, 2024
In the current quarter, revenue, gross profit, and cost of revenue all increased compared to both the immediately preceding quarter and the same quarter one year earlier. Gross margin was higher than both prior periods, indicating that gross profit grew at a faster rate than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
In the current quarter, revenue, gross profit, and cost of revenue all increased compared to both the immediately preceding quarter and the same quarter one year earlier. Gross margin was higher than both prior periods, indicating that gross profit grew at a faster rate than revenue.
- The strongest observable margin driver is the expansion of gross margin, as gross profit increased proportionally more than revenue.
- Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.0%
Gross profit
$741.2M
Revenue
$2.0B
Cost of revenue
$1.2B
Quarter-over-quarter change
+3.4 pts
Year-over-year change
+3.7 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $2.0B | $741.2M | $1.2B | 38.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+3.4 pts
Year-over-year change
Jun 30, 2023
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the expansion of gross margin, as gross profit increased proportionally more than revenue.
Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons.
Monitor the proportion of cost of revenue to revenue in subsequent quarters to assess whether the margin improvement is sustained.