BI

Biogen Inc. stock research

Jun 30, 2023

FY2023 Q2

Biogen (BIIB) Gross Margin — Quarter Ended Jun 30, 2023

Revenue remained stable compared to the prior quarter, while gross profit improved and cost of revenue declined, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue remained stable compared to the prior quarter, while gross profit improved and cost of revenue declined, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened.

  • The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which directly improved gross profit and gross margin from the prior quarter.
  • Gross margin improved from the prior quarter but was lower than the same quarter last year. Revenue was stable sequentially but declined year-over-year.

Gross margin snapshot

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

Gross margin

75.9%

Gross profit

$1.9B

Revenue

$2.5B

Cost of revenue

$592.7M

Quarter-over-quarter change

+2.8 pts

Year-over-year change

-5.4 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%
Jun 30, 2023$2.5B$1.9B$592.7M75.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

+2.8 pts

Year-over-year change

Jun 30, 2022

-5.4 pts

What the margin says

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

The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which directly improved gross profit and gross margin from the prior quarter.

Gross margin improved from the prior quarter but was lower than the same quarter last year. Revenue was stable sequentially but declined year-over-year.

Monitor the trajectory of cost of revenue, as its increase from the prior year contributed to the weakened gross margin.