ID

IDEXX Laboratories, Inc. stock research

Jun 30, 2023

FY2023 Q2

IDEXX Laboratories (IDXX) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter a year ago, leading to a higher gross margin. Cost of revenue also rose but at a slower relative pace.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter a year ago, leading to a higher gross margin. Cost of revenue also rose but at a slower relative pace.

  • The gross margin improvement was primarily driven by revenue growing faster than cost of revenue.
  • Gross margin improved compared to the immediately preceding quarter and the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

60.7%

Gross profit

$572.9M

Revenue

$943.6M

Cost of revenue

$370.8M

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+1.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$900.2M$543.0M$357.2M60.3%
Jun 30, 2023$943.6M$572.9M$370.8M60.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

+0.4 pts

Year-over-year change

Jun 30, 2022

+1.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improvement was primarily driven by revenue growing faster than cost of revenue.

Gross margin improved compared to the immediately preceding quarter and the same quarter one year earlier.

Monitor trends in companion animal healthcare and distributor purchasing, as referenced in the company's business overview.