Align Technology, Inc. stock research
FY2023 Q2
Align Technology (ALGN) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, resulting in an improved gross margin.
- The gross margin improved sequentially and year-over-year, driven by revenue growth that outpaced the increase in cost of revenue.
- Compared to the previous quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improving. Relative to the same quarter a year ago, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.2%
Gross profit
$713.6M
Revenue
$1.0B
Cost of revenue
$288.6M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+0.3 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% |
| Jun 30, 2023 | $1.0B | $713.6M | $288.6M | 71.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.2 pts
Year-over-year change
Jun 30, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by revenue growth that outpaced the increase in cost of revenue.
Compared to the previous quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin improving. Relative to the same quarter a year ago, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
Monitor whether cost of revenue continues to grow at a slower rate than revenue, as this dynamic supported the margin improvement.