DO

Healthpeak Properties, Inc. stock research

Jun 30, 2023

FY2023 Q2

Healthpeak Properties (DOC) Gross Margin — Quarter Ended Jun 30, 2023

Revenue improved compared to both the prior quarter and the same quarter one year earlier. Gross profit remained negative as cost of revenue exceeded revenue, though the gross margin strengthened from the previous quarter while weakening relative to the prior year.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue improved compared to both the prior quarter and the same quarter one year earlier. Gross profit remained negative as cost of revenue exceeded revenue, though the gross margin strengthened from the previous quarter while weakening relative to the prior year.

  • The strongest observable driver of the gross margin change is the relationship between the change in cost of revenue and the change in revenue. Cost of revenue decreased from the prior quarter while revenue increased, contributing to the sequential margin improvement.
  • Gross margin for the current quarter was higher than the immediately preceding quarter but lower than the same quarter one year earlier. This pattern reflects a mixed sequential versus year-over-year performance in the relationship between revenue and cost of revenue.

Gross margin snapshot

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

Gross margin

-70.4%

Gross profit

-$91.7M

Revenue

$130.2M

Cost of revenue

$221.8M

Quarter-over-quarter change

+5.1 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.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$127.1M-$96.0M$223.1M-75.5%
Jun 30, 2023$130.2M-$91.7M$221.8M-70.4%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+5.1 pts

Year-over-year change

Jun 30, 2022

+1.1 pts

What the margin says

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

The strongest observable driver of the gross margin change is the relationship between the change in cost of revenue and the change in revenue. Cost of revenue decreased from the prior quarter while revenue increased, contributing to the sequential margin improvement.

Gross margin for the current quarter was higher than the immediately preceding quarter but lower than the same quarter one year earlier. This pattern reflects a mixed sequential versus year-over-year performance in the relationship between revenue and cost of revenue.

Monitor the magnitude of the negative gross profit relative to revenue, as the gap narrowed sequentially but widened compared to the prior year.

DOC Gross Margin — Quarter Ended Jun 30, 2023