AiRWA Inc. stock research
FY2023 Q4
AiRWA (YYAI) Gross Margin — Quarter Ended Apr 30, 2023
Revenue rose from the prior quarter but was below the year-ago level. Gross profit fell from the prior quarter as cost of revenue increased sharply, weakening gross margin; year-over-year, gross margin strengthened because cost of revenue declined more than revenue.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2023 Q4
Revenue rose from the prior quarter but was below the year-ago level. Gross profit fell from the prior quarter as cost of revenue increased sharply, weakening gross margin; year-over-year, gross margin strengthened because cost of revenue declined more than revenue.
- The primary driver of the gross margin change is the relationship between revenue and cost of revenue. In the current quarter, cost of revenue grew faster than revenue relative to the prior quarter, compressing margin, while year-over-year cost of revenue fell more sharply than revenue, expanding margin.
- Compared to the immediately preceding quarter, gross margin weakened significantly as cost of revenue increased while gross profit decreased. Compared to the same quarter one year earlier, gross margin strengthened as cost of revenue declined more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.5%
Gross profit
$400305
Revenue
$2.3M
Cost of revenue
$1.9M
Quarter-over-quarter change
-49.1 pts
Year-over-year change
+7.0 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $1.6M | $1.1M | $535957 | 66.6% |
| Apr 30, 2023 | $2.3M | $400305 | $1.9M | 17.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
-49.1 pts
Year-over-year change
Apr 30, 2022
+7.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin change is the relationship between revenue and cost of revenue. In the current quarter, cost of revenue grew faster than revenue relative to the prior quarter, compressing margin, while year-over-year cost of revenue fell more sharply than revenue, expanding margin.
Compared to the immediately preceding quarter, gross margin weakened significantly as cost of revenue increased while gross profit decreased. Compared to the same quarter one year earlier, gross margin strengthened as cost of revenue declined more than revenue.
Monitor the company's ability to secure financing and address internal control weaknesses, as noted in the filing's risk factors and going concern discussion.