AbbVie Inc. stock research
FY2024 Q1
AbbVie (ABBV) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased from the prior quarter, while gross profit declined less, and cost of revenue fell more, resulting in an improved gross margin. Compared to the same quarter last year, revenue was slightly higher, gross profit was essentially unchanged, and cost of revenue was marginally higher, leading to a modest decline in gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue decreased from the prior quarter, while gross profit declined less, and cost of revenue fell more, resulting in an improved gross margin. Compared to the same quarter last year, revenue was slightly higher, gross profit was essentially unchanged, and cost of revenue was marginally higher, leading to a modest decline in gross margin.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue decreased at a faster rate than revenue, supporting margin expansion. Year over year, cost of revenue increased slightly faster than revenue, putting mild downward pressure on margin.
- Compared to the immediately preceding quarter, gross margin improved as revenue fell and cost of revenue dropped more sharply. Relative to the same quarter one year earlier, gross margin weakened slightly, with revenue and cost of revenue both edging up.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.7%
Gross profit
$8.2B
Revenue
$12.3B
Cost of revenue
$4.1B
Quarter-over-quarter change
+13.3 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $12.2B | $8.2B | $4.0B | 67.4% |
| Jun 30, 2023 | $13.9B | $9.6B | $4.2B | 69.4% |
| Sep 30, 2023 | $13.9B | $7.4B | $6.5B | 53.4% |
| Mar 31, 2024 | $12.3B | $8.2B | $4.1B | 66.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+13.3 pts
Year-over-year change
Mar 31, 2023
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue decreased at a faster rate than revenue, supporting margin expansion. Year over year, cost of revenue increased slightly faster than revenue, putting mild downward pressure on margin.
Compared to the immediately preceding quarter, gross margin improved as revenue fell and cost of revenue dropped more sharply. Relative to the same quarter one year earlier, gross margin weakened slightly, with revenue and cost of revenue both edging up.
Monitor the effects of the ImmunoGen acquisition on operating results, including changes in product mix and increased R&D funding, as noted in the management discussion.