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AiRWA Inc. stock research

Jul 31, 2024

FY2025 Q1

AiRWA (YYAI) Gross Margin — Quarter Ended Jul 31, 2024

Revenue and gross profit decreased from the prior quarter but increased from the same quarter last year. Cost of revenue was unchanged sequentially and significantly lower year-over-year, resulting in a gross margin that weakened from the prior quarter but improved markedly compared to the year-ago period.

Gross margin takeaway

Quarter ended Jul 31, 2024 · FY2025 Q1

Revenue and gross profit decreased from the prior quarter but increased from the same quarter last year. Cost of revenue was unchanged sequentially and significantly lower year-over-year, resulting in a gross margin that weakened from the prior quarter but improved markedly compared to the year-ago period.

  • The year-over-year improvement in gross margin was driven by a lower cost of revenue combined with higher revenue, while the sequential decline reflected stable costs on lower revenue.
  • Compared to the prior quarter, gross margin weakened as revenue fell while cost of revenue remained flat. Compared to the same quarter last year, gross margin improved sharply as cost of revenue was much lower and revenue was higher.

Gross margin snapshot

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

Gross margin

77.3%

Gross profit

$2.5M

Revenue

$3.3M

Cost of revenue

$744231

Quarter-over-quarter change

-2.9 pts

Year-over-year change

+48.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Oct 31, 2023$2.3M$646963$1.6M28.2%
Jan 31, 2024$480768$336538$14423070.0%
Apr 30, 2024$3.8M$3.0M$74423180.2%
Jul 31, 2024$3.3M$2.5M$74423177.3%

Quarterly comparisons

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

Previous-quarter change

Apr 30, 2024

-2.9 pts

Year-over-year change

Jul 31, 2023

+48.6 pts

What the margin says

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

The year-over-year improvement in gross margin was driven by a lower cost of revenue combined with higher revenue, while the sequential decline reflected stable costs on lower revenue.

Compared to the prior quarter, gross margin weakened as revenue fell while cost of revenue remained flat. Compared to the same quarter last year, gross margin improved sharply as cost of revenue was much lower and revenue was higher.

Monitor the company's ability to secure additional financing and address the going concern uncertainty as described in the filing context.