DexCom, Inc. stock research
FY2024 Q1
DexCom (DXCM) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened from both the prior quarter and the year-ago quarter, as cost of revenue grew faster than revenue on a sequential basis.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened from both the prior quarter and the year-ago quarter, as cost of revenue grew faster than revenue on a sequential basis.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: sequentially, revenue declined while cost of revenue fell less, compressing gross margin.
- Compared to the prior quarter, gross margin was lower, driven by a larger relative decline in revenue than in cost of revenue. Versus the same quarter last year, gross margin also weakened, as revenue growth was outpaced by cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.0%
Gross profit
$561.9M
Revenue
$921.0M
Cost of revenue
$359.1M
Quarter-over-quarter change
-2.5 pts
Year-over-year change
-1.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $921.0M | $561.9M | $359.1M | 61.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-2.5 pts
Year-over-year change
Mar 31, 2023
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: sequentially, revenue declined while cost of revenue fell less, compressing gross margin.
Compared to the prior quarter, gross margin was lower, driven by a larger relative decline in revenue than in cost of revenue. Versus the same quarter last year, gross margin also weakened, as revenue growth was outpaced by cost of revenue growth.
Monitor the trend in cost of revenue relative to revenue, as its slower decline sequentially contributed to margin compression.