Centene (CNC) Gross Margin — Quarter Ended Dec 31, 2023

Revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit decreased and gross margin weakened. Cost of revenue was higher than the prior quarter but lower than the year-ago quarter.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

The decline in gross profit relative to the change in revenue was the primary factor behind the weaker gross margin.
Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier.

Gross margin snapshot

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

Gross margin

10.6%

Gross profit

$3.7B

Revenue

$35.3B

Cost of revenue

$961.0M

Quarter-over-quarter change

-2.7 pts

Year-over-year change

-1.1 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%
Jun 30, 2023	$34.8B	$4.6B	$877.0M	13.2%
Sep 30, 2023	$35.0B	$4.6B	$856.0M	13.2%
Dec 31, 2023	$35.3B	$3.7B	$961.0M	10.6%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-2.7 pts

Year-over-year change

Dec 31, 2022

-1.1 pts

What the margin says

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

The decline in gross profit relative to the change in revenue was the primary factor behind the weaker gross margin.

Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier.

Monitor the trajectory of gross profit, which declined sequentially despite higher revenue.