Boston Scientific Corporation stock research
FY2023 Q1
Boston Scientific (BSX) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace, leading to higher gross profit and an improved gross margin. The gross margin strengthened sequentially and year-over-year, reflecting a favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace, leading to higher gross profit and an improved gross margin. The gross margin strengthened sequentially and year-over-year, reflecting a favorable relationship between revenue and cost of revenue.
- The gross margin improvement was driven by revenue growing faster than cost of revenue when compared with both the prior quarter and the year-ago quarter. This was the strongest observable margin driver from the supplied data.
- Compared to the immediately preceding quarter, gross margin was higher, supported by higher revenue and higher gross profit despite a stable cost of revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit both higher and cost of revenue increasing at a smaller relative pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.3%
Gross profit
$2.3B
Revenue
$3.4B
Cost of revenue
$1.0B
Quarter-over-quarter change
n/a
Year-over-year change
+0.9 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 | $3.4B | $2.3B | $1.0B | 69.3% |
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
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growing faster than cost of revenue when compared with both the prior quarter and the year-ago quarter. This was the strongest observable margin driver from the supplied data.
Compared to the immediately preceding quarter, gross margin was higher, supported by higher revenue and higher gross profit despite a stable cost of revenue. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit both higher and cost of revenue increasing at a smaller relative pace.
Monitor the trend in cost of revenue relative to revenue, as any shift in this relationship could affect gross margin stability.