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Beyond Meat, Inc. stock research

Sep 30, 2023

FY2023 Q3

Beyond Meat (BYND) Gross Margin — Quarter Ended Sep 30, 2023

Revenue decreased from the prior quarter and from the same quarter last year. Gross profit turned from positive to negative sequentially, while gross margin improved year-over-year as the cost of revenue declined more than revenue.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue decreased from the prior quarter and from the same quarter last year. Gross profit turned from positive to negative sequentially, while gross margin improved year-over-year as the cost of revenue declined more than revenue.

  • The gross margin movement was most closely associated with the relative changes in revenue and cost of revenue. Sequentially, gross margin weakened as revenue fell more than cost of revenue; year-over-year, gross margin improved as cost of revenue fell more than revenue.
  • Compared to the prior quarter, gross margin weakened as revenue dropped and gross profit turned negative. Compared to the same quarter last year, gross margin improved as the gross loss narrowed, despite lower revenue.

Gross margin snapshot

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

Gross margin

-9.6%

Gross profit

-$7.3M

Revenue

$75.3M

Cost of revenue

$82.6M

Quarter-over-quarter change

-11.9 pts

Year-over-year change

+8.4 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%
Sep 30, 2023$75.3M-$7.3M$82.6M-9.6%

Quarterly comparisons

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

Previous-quarter change

Jul 1, 2023

-11.9 pts

Year-over-year change

Oct 1, 2022

+8.4 pts

What the margin says

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

The gross margin movement was most closely associated with the relative changes in revenue and cost of revenue. Sequentially, gross margin weakened as revenue fell more than cost of revenue; year-over-year, gross margin improved as cost of revenue fell more than revenue.

Compared to the prior quarter, gross margin weakened as revenue dropped and gross profit turned negative. Compared to the same quarter last year, gross margin improved as the gross loss narrowed, despite lower revenue.

Monitor the trajectory of revenue relative to cost of revenue, as this relationship directly influences gross margin.