CT

Corteva, Inc. stock research

Jun 30, 2023

FY2023 Q2

Corteva (CTVA) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Versus the same quarter last year, revenue was lower and cost of revenue decreased, resulting in a stable gross profit and a slightly higher gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Versus the same quarter last year, revenue was lower and cost of revenue decreased, resulting in a stable gross profit and a slightly higher gross margin.

  • The gross margin improved sequentially as revenue grew faster than cost of revenue. The year-over-year comparison shows a stable gross profit despite lower revenue, indicating cost of revenue declined proportionally.
  • Compared to the prior quarter, gross margin strengthened. Compared to the same quarter last year, gross margin was slightly higher.

Gross margin snapshot

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

Gross margin

48.1%

Gross profit

$2.9B

Revenue

$6.0B

Cost of revenue

$3.1B

Quarter-over-quarter change

+4.8 pts

Year-over-year change

+1.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$4.9B$2.1B$2.8B43.3%
Jun 30, 2023$6.0B$2.9B$3.1B48.1%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+4.8 pts

Year-over-year change

Jun 30, 2022

+1.3 pts

What the margin says

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

The gross margin improved sequentially as revenue grew faster than cost of revenue. The year-over-year comparison shows a stable gross profit despite lower revenue, indicating cost of revenue declined proportionally.

Compared to the prior quarter, gross margin strengthened. Compared to the same quarter last year, gross margin was slightly higher.

Monitor the trend in cost of revenue relative to revenue, as its movement directly influences gross margin stability.

CTVA Gross Margin — Quarter Ended Jun 30, 2023