Centene Corporation stock research
FY2023 Q1
Centene (CNC) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue decreased versus both periods, contributing to an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue decreased versus both periods, contributing to an improved gross margin.
- The gross margin improved sequentially and year-over-year, driven by a lower cost of revenue relative to revenue. The strongest observable driver is the reduction in cost of revenue, which outpaced revenue growth.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.3%
Gross profit
$4.6B
Revenue
$35.0B
Cost of revenue
$870.0M
Quarter-over-quarter change
n/a
Year-over-year change
+0.4 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 | $35.0B | $4.6B | $870.0M | 13.3% |
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
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a lower cost of revenue relative to revenue. The strongest observable driver is the reduction in cost of revenue, which outpaced revenue growth.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was lower, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the margin improvement.