Builders FirstSource, Inc. stock research
FY2023 Q4
Builders FirstSource (BLDR) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue declined at a slightly faster rate, resulting in a marginal improvement in gross margin. Versus the same quarter one year earlier, revenue was lower but gross profit held steady, and a smaller cost of revenue relative to revenue led to a higher gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue declined at a slightly faster rate, resulting in a marginal improvement in gross margin. Versus the same quarter one year earlier, revenue was lower but gross profit held steady, and a smaller cost of revenue relative to revenue led to a higher gross margin.
- The strongest observable driver of gross margin improvement is the relationship between cost of revenue and revenue: cost of revenue declined more sharply than revenue both sequentially and year-over-year, allowing gross profit to remain relatively stable.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin improved slightly. Compared to the same quarter one year earlier, revenue was lower while gross profit was unchanged, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.3%
Gross profit
$1.5B
Revenue
$4.2B
Cost of revenue
$2.7B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.2 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% |
| Jun 30, 2023 | $4.5B | $1.6B | $2.9B | 35.2% |
| Sep 30, 2023 | $4.5B | $1.6B | $3.0B | 34.9% |
| Dec 31, 2023 | $4.2B | $1.5B | $2.7B | 35.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.4 pts
Year-over-year change
Dec 31, 2022
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin improvement is the relationship between cost of revenue and revenue: cost of revenue declined more sharply than revenue both sequentially and year-over-year, allowing gross profit to remain relatively stable.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin improved slightly. Compared to the same quarter one year earlier, revenue was lower while gross profit was unchanged, and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its rate of decline has been the primary factor supporting gross margin.