DX

DexCom, Inc. stock research

Jun 30, 2023

FY2023 Q2

DexCom (DXCM) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened year-over-year.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but weakened year-over-year.

  • Gross margin was higher quarter-over-quarter but lower than the year-ago period, reflecting a change in the relationship between cost of revenue and revenue.
  • Compared to the prior quarter, gross margin improved; compared to the same quarter last year, gross margin decreased.

Gross margin snapshot

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

Gross margin

62.7%

Gross profit

$546.4M

Revenue

$871.3M

Cost of revenue

$324.9M

Quarter-over-quarter change

+0.3 pts

Year-over-year change

-1.9 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$741.5M$462.6M$278.9M62.4%
Jun 30, 2023$871.3M$546.4M$324.9M62.7%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+0.3 pts

Year-over-year change

Jun 30, 2022

-1.9 pts

What the margin says

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

Gross margin was higher quarter-over-quarter but lower than the year-ago period, reflecting a change in the relationship between cost of revenue and revenue.

Compared to the prior quarter, gross margin improved; compared to the same quarter last year, gross margin decreased.

Monitor the direction of gross margin relative to revenue growth in upcoming quarters.