Corteva, Inc. stock research
FY2023 Q1
Corteva (CTVA) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue was higher than the prior quarter but slightly lower than the year-ago quarter, resulting in an improved gross margin relative to both periods.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue was higher than the prior quarter but slightly lower than the year-ago quarter, resulting in an improved gross margin relative to both periods.
- Gross profit grew faster than revenue, leading to a higher gross margin. The strongest observable driver is the relationship between revenue and cost of revenue, where revenue increased while cost of revenue remained relatively stable compared to the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.3%
Gross profit
$2.1B
Revenue
$4.9B
Cost of revenue
$2.8B
Quarter-over-quarter change
n/a
Year-over-year change
+2.5 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 | $4.9B | $2.1B | $2.8B | 43.3% |
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
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than revenue, leading to a higher gross margin. The strongest observable driver is the relationship between revenue and cost of revenue, where revenue increased while cost of revenue remained relatively stable compared to the year-ago quarter.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly lower, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its stability versus the year-ago quarter was a key factor in margin improvement.