Builders FirstSource, Inc. stock research
FY2023 Q1
Builders FirstSource (BLDR) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was lower than both the prior quarter and the same quarter a year ago, while gross profit followed a similar pattern. Despite the decline in revenue, gross margin improved compared to both periods, as cost of revenue decreased at a faster rate.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was lower than both the prior quarter and the same quarter a year ago, while gross profit followed a similar pattern. Despite the decline in revenue, gross margin improved compared to both periods, as cost of revenue decreased at a faster rate.
- Gross margin was higher sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to revenue. This improvement occurred even as absolute gross profit decreased.
- Compared to the prior quarter, revenue was lower and cost of revenue was lower, leading to a slightly higher gross margin. Relative to the same quarter last year, revenue and gross profit both declined, but gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.3%
Gross profit
$1.4B
Revenue
$3.9B
Cost of revenue
$2.5B
Quarter-over-quarter change
n/a
Year-over-year change
+3.1 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.9B | $1.4B | $2.5B | 35.3% |
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
Mar 31, 2022
+3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was higher sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to revenue. This improvement occurred even as absolute gross profit decreased.
Compared to the prior quarter, revenue was lower and cost of revenue was lower, leading to a slightly higher gross margin. Relative to the same quarter last year, revenue and gross profit both declined, but gross margin strengthened.
Monitor the trajectory of cost of revenue relative to revenue, as the pace of cost reductions has been a key factor in margin expansion.