Align Technology (ALGN) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit both rose from the previous quarter, while cost of revenue was nearly flat. Gross margin improved from the prior quarter but weakened compared to the same quarter one year earlier.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

The increase in gross profit was supported by higher revenue with cost of revenue remaining stable compared to the prior quarter.
Compared with the immediately preceding quarter, gross margin improved. Compared with the same quarter one year earlier, gross margin weakened.

Gross margin snapshot

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

Gross margin

70.0%

Gross profit

$660.7M

Revenue

$943.1M

Cost of revenue

$282.5M

Quarter-over-quarter change

n/a

Year-over-year change

-2.8 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	$943.1M	$660.7M	$282.5M	70.0%

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

Mar 31, 2022

-2.8 pts

What the margin says

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

The increase in gross profit was supported by higher revenue with cost of revenue remaining stable compared to the prior quarter.

Compared with the immediately preceding quarter, gross margin improved. Compared with the same quarter one year earlier, gross margin weakened.

Monitor the trajectory of cost of revenue, which remained near the prior-quarter level despite higher revenue.