Align Technology, Inc. stock research
FY2024 Q1
Align Technology (ALGN) Gross Margin — Quarter Ended Mar 31, 2024
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin remained stable across all three periods, indicating that the proportional relationship between gross profit and revenue was consistent.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin remained stable across all three periods, indicating that the proportional relationship between gross profit and revenue was consistent.
- Gross margin was unchanged from both the preceding quarter and the year-ago quarter, making the stability itself the most notable characteristic. The increase in gross profit was proportional to the increase in revenue, with cost of revenue rising at a similar pace.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was unchanged. Compared to the same quarter one year earlier, revenue and gross profit were also higher, with gross margin again unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.0%
Gross profit
$697.8M
Revenue
$997.4M
Cost of revenue
$299.6M
Quarter-over-quarter change
-0.0 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2023 | $1.0B | $713.6M | $288.6M | 71.2% |
| Sep 30, 2023 | $960.2M | $663.1M | $297.1M | 69.1% |
| Dec 31, 2023 | $956.7M | $669.5M | $287.2M | 70.0% |
| Mar 31, 2024 | $997.4M | $697.8M | $299.6M | 70.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.0 pts
Year-over-year change
Mar 31, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was unchanged from both the preceding quarter and the year-ago quarter, making the stability itself the most notable characteristic. The increase in gross profit was proportional to the increase in revenue, with cost of revenue rising at a similar pace.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was unchanged. Compared to the same quarter one year earlier, revenue and gross profit were also higher, with gross margin again unchanged.
Monitor whether gross margin can maintain its current level if revenue growth outpaces cost of revenue growth or if cost pressures emerge.