Healthpeak Properties, Inc. stock research
FY2023 Q3
Healthpeak Properties (DOC) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared with both the prior quarter and the same quarter last year. However, cost of revenue also rose, leading to a negative gross profit and a gross margin that weakened sequentially but improved from the prior-year period.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared with both the prior quarter and the same quarter last year. However, cost of revenue also rose, leading to a negative gross profit and a gross margin that weakened sequentially but improved from the prior-year period.
- The year-over-year improvement in gross margin was driven by revenue growing at a faster pace than cost of revenue. Conversely, the sequential decline resulted from cost of revenue increasing more rapidly than revenue.
- Compared to the prior quarter, gross margin weakened as the negative margin became more pronounced. Compared to the same quarter last year, gross margin improved as the negative margin narrowed.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-73.9%
Gross profit
-$98.9M
Revenue
$133.8M
Cost of revenue
$232.7M
Quarter-over-quarter change
-3.5 pts
Year-over-year change
+6.4 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 | $127.1M | -$96.0M | $223.1M | -75.5% |
| Jun 30, 2023 | $130.2M | -$91.7M | $221.8M | -70.4% |
| Sep 30, 2023 | $133.8M | -$98.9M | $232.7M | -73.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-3.5 pts
Year-over-year change
Sep 30, 2022
+6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was driven by revenue growing at a faster pace than cost of revenue. Conversely, the sequential decline resulted from cost of revenue increasing more rapidly than revenue.
Compared to the prior quarter, gross margin weakened as the negative margin became more pronounced. Compared to the same quarter last year, gross margin improved as the negative margin narrowed.
Monitor the trend in cost of revenue relative to revenue, as the gap between them determines the extent of the negative gross margin.