DexCom, Inc. stock research
FY2023 Q3
DexCom (DXCM) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, gross profit, and cost of revenue all increased compared with the prior quarter and the same quarter a year earlier. Gross margin improved sequentially but was slightly lower than the year-ago level.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue all increased compared with the prior quarter and the same quarter a year earlier. Gross margin improved sequentially but was slightly lower than the year-ago level.
- The strongest observable driver was the increase in revenue, which rose more than the increase in cost of revenue, resulting in a higher gross profit and an improved gross margin relative to the prior quarter.
- Compared with the immediately preceding quarter, gross margin was higher, reflecting a larger proportional increase in gross profit relative to revenue. Compared with the same quarter one year earlier, gross margin was slightly lower, as cost of revenue grew at a faster pace than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.9%
Gross profit
$623.3M
Revenue
$975.0M
Cost of revenue
$351.7M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $741.5M | $462.6M | $278.9M | 62.4% |
| Jun 30, 2023 | $871.3M | $546.4M | $324.9M | 62.7% |
| Sep 30, 2023 | $975.0M | $623.3M | $351.7M | 63.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.2 pts
Year-over-year change
Sep 30, 2022
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the increase in revenue, which rose more than the increase in cost of revenue, resulting in a higher gross profit and an improved gross margin relative to the prior quarter.
Compared with the immediately preceding quarter, gross margin was higher, reflecting a larger proportional increase in gross profit relative to revenue. Compared with the same quarter one year earlier, gross margin was slightly lower, as cost of revenue grew at a faster pace than revenue.
Monitor the trend of cost of revenue relative to revenue, as its year-over-year increase outpaced revenue growth and contributed to the slight margin decline.