Biogen Inc. stock research
FY2023 Q3
Biogen (BIIB) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit decreased slightly from the prior quarter and more notably from a year ago, driven by a higher cost of revenue, which caused gross margin to weaken sequentially and year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit decreased slightly from the prior quarter and more notably from a year ago, driven by a higher cost of revenue, which caused gross margin to weaken sequentially and year-over-year.
- The strongest observable margin driver is the increase in cost of revenue relative to revenue, which compressed gross margin. Revenue remained unchanged, so the entire margin movement stems from cost changes.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue was flat. Versus the same quarter one year earlier, gross margin declined more sharply, with cost of revenue substantially higher and gross profit lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.9%
Gross profit
$1.9B
Revenue
$2.5B
Cost of revenue
$659.6M
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-7.4 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 | $2.5B | $1.8B | $662.8M | 73.1% |
| Jun 30, 2023 | $2.5B | $1.9B | $592.7M | 75.9% |
| Sep 30, 2023 | $2.5B | $1.9B | $659.6M | 73.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-1.9 pts
Year-over-year change
Sep 30, 2022
-7.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue relative to revenue, which compressed gross margin. Revenue remained unchanged, so the entire margin movement stems from cost changes.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue was flat. Versus the same quarter one year earlier, gross margin declined more sharply, with cost of revenue substantially higher and gross profit lower.
Monitor the trajectory of cost of revenue, as its increase has been the primary factor behind the margin compression in the current quarter.