Elevance Health, Inc. stock research
FY2023 Q1
Elevance Health (ELV) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue was lower than the prior quarter but higher than the year-ago quarter, resulting in a gross margin that improved sequentially but decreased relative to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue was lower than the prior quarter but higher than the year-ago quarter, resulting in a gross margin that improved sequentially but decreased relative to the same quarter last year.
- The strongest observable driver of the gross margin change is the relationship between revenue growth and cost of revenue movement; revenue rose while cost of revenue fell relative to the prior quarter, supporting margin expansion.
- Gross margin improved from the immediately preceding quarter but weakened compared to the same quarter one year earlier. Revenue increased both sequentially and year-over-year, while cost of revenue decreased sequentially and increased year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
91.7%
Gross profit
$38.7B
Revenue
$42.2B
Cost of revenue
$3.5B
Quarter-over-quarter change
n/a
Year-over-year change
-0.7 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 | $42.2B | $38.7B | $3.5B | 91.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change is the relationship between revenue growth and cost of revenue movement; revenue rose while cost of revenue fell relative to the prior quarter, supporting margin expansion.
Gross margin improved from the immediately preceding quarter but weakened compared to the same quarter one year earlier. Revenue increased both sequentially and year-over-year, while cost of revenue decreased sequentially and increased year-over-year.
Monitor the trajectory of cost of revenue relative to revenue, as its current sequential decline may not persist.