Vertiv Holdings Co stock research
FY2024 Q3
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the same quarter a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved relative to the same quarter a year ago.
- The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting margin improvement.
- Compared to the immediately preceding quarter, gross margin was lower, as cost of revenue grew at a faster pace relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue growth outpacing cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.5%
Gross profit
$756.4M
Revenue
$2.1B
Cost of revenue
$1.3B
Quarter-over-quarter change
-1.5 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $2.1B | $756.4M | $1.3B | 36.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.5 pts
Year-over-year change
Sep 30, 2023
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting margin improvement.
Compared to the immediately preceding quarter, gross margin was lower, as cost of revenue grew at a faster pace relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue growth outpacing cost of revenue growth.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as the sequential weakening of gross margin suggests cost pressures may be emerging.