Elevance Health, Inc. stock research
FY2024 Q1
Elevance Health (ELV) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was unchanged from the prior quarter but higher than the same quarter one year earlier. Gross profit increased from the prior quarter and was slightly above the year-ago level, while cost of revenue decreased from the prior quarter but increased year over year, resulting in a gross margin that improved sequentially but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was unchanged from the prior quarter but higher than the same quarter one year earlier. Gross profit increased from the prior quarter and was slightly above the year-ago level, while cost of revenue decreased from the prior quarter but increased year over year, resulting in a gross margin that improved sequentially but weakened compared to the same quarter last year.
- The most notable observable driver of the margin change was the reduction in cost of revenue from the prior quarter, which outpaced the stable revenue, lifting gross profit and margin.
- Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
91.0%
Gross profit
$38.8B
Revenue
$42.6B
Cost of revenue
$3.8B
Quarter-over-quarter change
+2.4 pts
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 |
|---|---|---|---|---|
| Jun 30, 2023 | $43.7B | $39.3B | $4.3B | 90.1% |
| Sep 30, 2023 | $42.8B | $38.2B | $4.6B | 89.2% |
| Dec 31, 2023 | $42.6B | $37.8B | $4.8B | 88.7% |
| Mar 31, 2024 | $42.6B | $38.8B | $3.8B | 91.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.4 pts
Year-over-year change
Mar 31, 2023
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver of the margin change was the reduction in cost of revenue from the prior quarter, which outpaced the stable revenue, lifting gross profit and margin.
Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the movement of cost of revenue relative to revenue, as it showed a significant decline from the prior quarter but an increase from the prior year.