BI

Biogen Inc. stock research

Mar 31, 2023

FY2023 Q1

Biogen (BIIB) Gross Margin — Quarter Ended Mar 31, 2023

Revenue was stable compared to the prior quarter but slightly lower than the same quarter last year. Gross profit decreased relative to both periods, driven by a higher cost of revenue, which caused gross margin to weaken.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue was stable compared to the prior quarter but slightly lower than the same quarter last year. Gross profit decreased relative to both periods, driven by a higher cost of revenue, which caused gross margin to weaken.

  • The most observable driver of gross margin change is the increase in cost of revenue relative to revenue, as revenue remained stable quarter over quarter while cost of revenue rose.
  • Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased while revenue was unchanged. Versus the same quarter one year earlier, gross margin also weakened, with revenue slightly lower and cost of revenue higher.

Gross margin snapshot

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

Gross margin

73.1%

Gross profit

$1.8B

Revenue

$2.5B

Cost of revenue

$662.8M

Quarter-over-quarter change

n/a

Year-over-year change

-8.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.5B$1.8B$662.8M73.1%

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

Jun 30, 2022

-8.2 pts

What the margin says

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

The most observable driver of gross margin change is the increase in cost of revenue relative to revenue, as revenue remained stable quarter over quarter while cost of revenue rose.

Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased while revenue was unchanged. Versus the same quarter one year earlier, gross margin also weakened, with revenue slightly lower and cost of revenue higher.

Monitor the trajectory of cost of revenue, as its increase relative to revenue has been the primary factor behind the gross margin decline.