DexCom, Inc. stock research
FY2023 Q4
DexCom (DXCM) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. However, gross margin decreased, as cost of revenue grew at a faster rate than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. However, gross margin decreased, as cost of revenue grew at a faster rate than revenue.
- The strongest observable driver of the margin change is the relative growth of cost of revenue. Cost of revenue increased more than revenue when compared to both the preceding quarter and the year-ago quarter, leading to a lower gross margin.
- Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin weakened more notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.5%
Gross profit
$656.6M
Revenue
$1.0B
Cost of revenue
$377.9M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-2.9 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% |
| Jun 30, 2023 | $871.3M | $546.4M | $324.9M | 62.7% |
| Sep 30, 2023 | $975.0M | $623.3M | $351.7M | 63.9% |
| Dec 31, 2023 | $1.0B | $656.6M | $377.9M | 63.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.5 pts
Year-over-year change
Dec 31, 2022
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin change is the relative growth of cost of revenue. Cost of revenue increased more than revenue when compared to both the preceding quarter and the year-ago quarter, leading to a lower gross margin.
Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin weakened more notably.
Monitor the trend of cost of revenue relative to revenue, as its growth rate has outpaced revenue growth.