DexCom, Inc. stock research
FY2024 Q2
DexCom (DXCM) Gross Margin — Quarter Ended Jun 30, 2024
Revenue grew from both the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross profit increased accordingly, yet gross margin improved sequentially but declined slightly from a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue grew from both the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross profit increased accordingly, yet gross margin improved sequentially but declined slightly from a year ago.
- The sequential improvement in gross margin reflects that gross profit grew faster than cost of revenue when compared with the prior quarter. Versus the year-ago quarter, cost of revenue increased at a higher rate relative to gross profit, leading to the marginal decline in margin.
- Revenue and gross profit were higher than both the prior quarter and the same quarter one year earlier. Gross margin improved from the preceding quarter but was slightly weakened relative to the year-ago period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.4%
Gross profit
$626.7M
Revenue
$1.0B
Cost of revenue
$377.6M
Quarter-over-quarter change
+1.4 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $1.0B | $626.7M | $377.6M | 62.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.4 pts
Year-over-year change
Jun 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin reflects that gross profit grew faster than cost of revenue when compared with the prior quarter. Versus the year-ago quarter, cost of revenue increased at a higher rate relative to gross profit, leading to the marginal decline in margin.
Revenue and gross profit were higher than both the prior quarter and the same quarter one year earlier. Gross margin improved from the preceding quarter but was slightly weakened relative to the year-ago period.
Monitor the ongoing trend of cost of revenue growth relative to revenue growth, as the year-over-year margin comparison showed a slight weakening.