Align Technology, Inc. stock research
FY2024 Q2
Align Technology (ALGN) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased slightly from the prior quarter, with cost of revenue rising at a slower rate, leading to a modest improvement in gross margin. Compared to the same quarter last year, revenue was slightly higher, but cost of revenue increased more, causing gross margin to weaken.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased slightly from the prior quarter, with cost of revenue rising at a slower rate, leading to a modest improvement in gross margin. Compared to the same quarter last year, revenue was slightly higher, but cost of revenue increased more, causing gross margin to weaken.
- The most notable driver was the slower growth in cost of revenue relative to revenue, which allowed gross profit to expand as a share of revenue compared to the prior quarter.
- Sequentially, gross margin improved from the prior quarter, while year-over-year it weakened. Revenue was higher than both the prior quarter and the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.3%
Gross profit
$722.6M
Revenue
$1.0B
Cost of revenue
$305.9M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $1.0B | $722.6M | $305.9M | 70.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.3 pts
Year-over-year change
Jun 30, 2023
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable driver was the slower growth in cost of revenue relative to revenue, which allowed gross profit to expand as a share of revenue compared to the prior quarter.
Sequentially, gross margin improved from the prior quarter, while year-over-year it weakened. Revenue was higher than both the prior quarter and the year-ago quarter.
Monitor the relationship between cost of revenue and revenue growth, as it has been a key factor in gross margin changes.