DexCom, Inc. stock research
FY2023 Q1
DexCom (DXCM) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased from the prior quarter, while cost of revenue remained relatively stable, resulting in a lower gross profit and a weakened gross margin. Compared to the same quarter one year earlier, revenue increased but cost of revenue increased at a faster pace, leading to a slightly lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased from the prior quarter, while cost of revenue remained relatively stable, resulting in a lower gross profit and a weakened gross margin. Compared to the same quarter one year earlier, revenue increased but cost of revenue increased at a faster pace, leading to a slightly lower gross margin.
- The relationship between cost of revenue and revenue shifted unfavorably: cost of revenue held steady while revenue fell sequentially, and year-over-year cost of revenue grew more than revenue.
- Sequentially, gross margin weakened as revenue declined and cost of revenue was nearly flat. Year-over-year, gross margin was slightly lower despite higher revenue, because cost of revenue increased more.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.4%
Gross profit
$462.6M
Revenue
$741.5M
Cost of revenue
$278.9M
Quarter-over-quarter change
n/a
Year-over-year change
-0.9 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 | $741.5M | $462.6M | $278.9M | 62.4% |
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
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue and revenue shifted unfavorably: cost of revenue held steady while revenue fell sequentially, and year-over-year cost of revenue grew more than revenue.
Sequentially, gross margin weakened as revenue declined and cost of revenue was nearly flat. Year-over-year, gross margin was slightly lower despite higher revenue, because cost of revenue increased more.
Inventory levels, which increased from the prior quarter as shown in the balance sheet, are a concrete item to monitor.