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AiRWA Inc. stock research

Jul 31, 2023

FY2023 Q1

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

Revenue increased compared to the prior quarter, leading to a higher gross profit and an improved gross margin. However, revenue was lower than the same quarter a year earlier, with gross profit also declining, though gross margin remained nearly stable.

Gross margin takeaway

Quarter ended Jul 31, 2023 · FY2023 Q1

Revenue increased compared to the prior quarter, leading to a higher gross profit and an improved gross margin. However, revenue was lower than the same quarter a year earlier, with gross profit also declining, though gross margin remained nearly stable.

  • The improvement in gross margin from the prior quarter was the strongest observable driver, as revenue grew at a faster pace than cost of revenue.
  • Compared to the prior quarter, gross margin improved significantly. Compared to the same quarter a year earlier, gross margin was essentially unchanged.

Gross margin snapshot

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

Gross margin

28.6%

Gross profit

$892749

Revenue

$3.1M

Cost of revenue

$2.2M

Quarter-over-quarter change

+11.1 pts

Year-over-year change

+0.1 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%
Apr 30, 2023$2.3M$400305$1.9M17.5%
Jul 31, 2023$3.1M$892749$2.2M28.6%

Quarterly comparisons

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

Previous-quarter change

Apr 30, 2023

+11.1 pts

Year-over-year change

Jul 31, 2022

+0.1 pts

What the margin says

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

The improvement in gross margin from the prior quarter was the strongest observable driver, as revenue grew at a faster pace than cost of revenue.

Compared to the prior quarter, gross margin improved significantly. Compared to the same quarter a year earlier, gross margin was essentially unchanged.

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.