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Beyond Meat, Inc. stock research

Jul 1, 2023

FY2023 Q2

Beyond Meat (BYND) Gross Margin — Quarter Ended Jul 1, 2023

Revenue increased from the preceding quarter but declined from the same quarter last year. Gross profit turned positive from a year ago but decreased sequentially, reflecting a narrower gross margin compared to the prior quarter.

Gross margin takeaway

Quarter ended Jul 1, 2023 · FY2023 Q2

Revenue increased from the preceding quarter but declined from the same quarter last year. Gross profit turned positive from a year ago but decreased sequentially, reflecting a narrower gross margin compared to the prior quarter.

  • The cost of revenue increased at a faster rate than revenue from the prior quarter, which compressed the gross margin. Compared to a year ago, the cost of revenue decreased while revenue also declined, but the margin improved from negative to positive.
  • Compared to the prior quarter, gross margin weakened. Compared to the same quarter last year, gross margin improved from a negative to a positive figure.

Gross margin snapshot

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

Gross margin

2.2%

Gross profit

$2.3M

Revenue

$102.1M

Cost of revenue

$99.9M

Quarter-over-quarter change

-4.5 pts

Year-over-year change

+6.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$92.2M$6.2M$86.1M6.7%
Jul 1, 2023$102.1M$2.3M$99.9M2.2%

Quarterly comparisons

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

Previous-quarter change

Apr 1, 2023

-4.5 pts

Year-over-year change

Jul 2, 2022

+6.4 pts

What the margin says

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

The cost of revenue increased at a faster rate than revenue from the prior quarter, which compressed the gross margin. Compared to a year ago, the cost of revenue decreased while revenue also declined, but the margin improved from negative to positive.

Compared to the prior quarter, gross margin weakened. Compared to the same quarter last year, gross margin improved from a negative to a positive figure.

Monitor the evolution of cost of revenue relative to revenue, as the current quarter's margin narrowed despite higher revenue.