Healthpeak Properties, Inc. stock research
FY2024 Q3
Healthpeak Properties (DOC) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased relative to both the prior quarter and the same quarter last year. Gross profit remained negative, and the gross margin weakened compared to both periods, as the cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased relative to both the prior quarter and the same quarter last year. Gross profit remained negative, and the gross margin weakened compared to both periods, as the cost of revenue grew faster than revenue.
- The strongest observable driver of the gross margin movement is the change in cost of revenue. Its increase outpaced the change in revenue in both comparisons, leading to a larger negative gross profit and a weaker margin.
- Compared to the prior quarter, revenue was slightly higher, but cost of revenue was also higher, resulting in a larger gross loss and a weakened gross margin. Versus the same quarter one year ago, revenue was higher, yet the cost of revenue increased significantly more, causing gross profit to become more negative and the gross margin to decline substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-96.2%
Gross profit
-$137.4M
Revenue
$142.8M
Cost of revenue
$280.3M
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-22.3 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $136.3M | -$88.1M | $224.4M | -64.6% |
| Mar 31, 2024 | $138.8M | -$105.0M | $243.7M | -75.6% |
| Jun 30, 2024 | $140.9M | -$132.9M | $273.8M | -94.4% |
| Sep 30, 2024 | $142.8M | -$137.4M | $280.3M | -96.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.9 pts
Year-over-year change
Sep 30, 2023
-22.3 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 movement is the change in cost of revenue. Its increase outpaced the change in revenue in both comparisons, leading to a larger negative gross profit and a weaker margin.
Compared to the prior quarter, revenue was slightly higher, but cost of revenue was also higher, resulting in a larger gross loss and a weakened gross margin. Versus the same quarter one year ago, revenue was higher, yet the cost of revenue increased significantly more, causing gross profit to become more negative and the gross margin to decline substantially.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth continues to pressure gross margin.