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Beyond Meat, Inc. stock research

Mar 30, 2024

FY2024 Q1

Beyond Meat (BYND) Gross Margin — Quarter Ended Mar 30, 2024

Revenue increased compared to the prior quarter, while gross profit turned positive from a negative position, resulting in a gross margin that improved significantly. Compared to the same quarter last year, revenue was lower and gross profit decreased, leading to a weakened gross margin.

Gross margin takeaway

Quarter ended Mar 30, 2024 · FY2024 Q1

Revenue increased compared to the prior quarter, while gross profit turned positive from a negative position, resulting in a gross margin that improved significantly. Compared to the same quarter last year, revenue was lower and gross profit decreased, leading to a weakened gross margin.

  • The most observable driver of gross margin improvement is the shift in cost of revenue relative to revenue. In the prior quarter, cost of revenue exceeded revenue by a wide margin, whereas in the current quarter cost of revenue is lower than revenue, allowing gross profit to become positive.
  • Compared to the immediately preceding quarter, gross margin improved from a negative level to a positive level. Compared to the same quarter one year earlier, gross margin was lower.

Gross margin snapshot

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

Gross margin

4.9%

Gross profit

$3.7M

Revenue

$75.6M

Cost of revenue

$71.9M

Quarter-over-quarter change

+118.7 pts

Year-over-year change

-1.9 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jul 1, 2023$102.1M$2.3M$99.9M2.2%
Sep 30, 2023$75.3M-$7.3M$82.6M-9.6%
Dec 31, 2023$73.7M-$83.9M$157.5M-113.8%
Mar 30, 2024$75.6M$3.7M$71.9M4.9%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

+118.7 pts

Year-over-year change

Apr 1, 2023

-1.9 pts

What the margin says

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

The most observable driver of gross margin improvement is the shift in cost of revenue relative to revenue. In the prior quarter, cost of revenue exceeded revenue by a wide margin, whereas in the current quarter cost of revenue is lower than revenue, allowing gross profit to become positive.

Compared to the immediately preceding quarter, gross margin improved from a negative level to a positive level. Compared to the same quarter one year earlier, gross margin was lower.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the positive gross margin can be sustained.