Globe Life Inc. stock research
FY2023 Q2
Globe Life (GL) Gross Margin — Quarter Ended Jun 30, 2023
Revenue remained steady compared to both the prior quarter and the same quarter a year ago. Gross profit improved slightly from the prior quarter but cost of revenue increased year over year, resulting in gross margin that improved sequentially but declined year over year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue remained steady compared to both the prior quarter and the same quarter a year ago. Gross profit improved slightly from the prior quarter but cost of revenue increased year over year, resulting in gross margin that improved sequentially but declined year over year.
- The sequential improvement in gross profit, while revenue remained flat, was the primary factor associated with the higher gross margin compared to the prior quarter.
- Compared to the prior quarter, gross margin improved as gross profit increased on stable revenue. Compared to the same quarter a year earlier, gross margin weakened as revenue was unchanged but cost of revenue rose.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.4%
Gross profit
$310.3M
Revenue
$1.3B
Cost of revenue
$1.0B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.3B | $305.2M | $1.0B | 23.1% |
| Jun 30, 2023 | $1.3B | $310.3M | $1.0B | 23.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.3 pts
Year-over-year change
Jun 30, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross profit, while revenue remained flat, was the primary factor associated with the higher gross margin compared to the prior quarter.
Compared to the prior quarter, gross margin improved as gross profit increased on stable revenue. Compared to the same quarter a year earlier, gross margin weakened as revenue was unchanged but cost of revenue rose.
Monitor the trajectory of cost of revenue relative to revenue, as its annual increase coincided with a lower gross margin.