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AiRWA Inc. stock research

Jan 31, 2023

FY2023 Q3

AiRWA (YYAI) Gross Margin — Quarter Ended Jan 31, 2023

Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased. The gross margin improved significantly as cost of revenue declined more sharply than revenue.

Gross margin takeaway

Quarter ended Jan 31, 2023 · FY2023 Q3

Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased. The gross margin improved significantly as cost of revenue declined more sharply than revenue.

  • The most notable driver of the margin improvement is the substantial reduction in cost of revenue relative to revenue, which led to a higher gross profit despite lower revenue.
  • Compared to the immediately preceding quarter, revenue was lower but gross profit was higher, resulting in a much higher gross margin. Versus the same quarter one year earlier, revenue was also lower while gross profit was slightly higher, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

66.6%

Gross profit

$1.1M

Revenue

$1.6M

Cost of revenue

$535957

Quarter-over-quarter change

n/a

Year-over-year change

+43.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jan 31, 2023$1.6M$1.1M$53595766.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Jan 31, 2022

+43.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most notable driver of the margin improvement is the substantial reduction in cost of revenue relative to revenue, which led to a higher gross profit despite lower revenue.

Compared to the immediately preceding quarter, revenue was lower but gross profit was higher, resulting in a much higher gross margin. Versus the same quarter one year earlier, revenue was also lower while gross profit was slightly higher, and gross margin improved.

Monitor the company's ability to secure additional financing to support its operations, as the filing indicates substantial doubt about its ability to continue as a going concern.