IDEXX Laboratories, Inc. stock research
FY2023 Q3
IDEXX Laboratories (IDXX) Gross Margin — Quarter Ended Sep 30, 2023
Revenue decreased from the prior quarter but increased from the same quarter a year earlier. Gross profit followed the same pattern, while cost of revenue was lower than the prior quarter and higher than the year-ago quarter, resulting in a gross margin that weakened both sequentially and year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue decreased from the prior quarter but increased from the same quarter a year earlier. Gross profit followed the same pattern, while cost of revenue was lower than the prior quarter and higher than the year-ago quarter, resulting in a gross margin that weakened both sequentially and year-over-year.
- The gross margin decline was driven by the relationship between cost of revenue and revenue: cost of revenue did not decrease as much as revenue sequentially, and increased more than revenue year-over-year.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, while gross margin decreased. Compared to the same quarter a year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.9%
Gross profit
$548.0M
Revenue
$915.5M
Cost of revenue
$367.5M
Quarter-over-quarter change
-0.9 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $900.2M | $543.0M | $357.2M | 60.3% |
| Jun 30, 2023 | $943.6M | $572.9M | $370.8M | 60.7% |
| Sep 30, 2023 | $915.5M | $548.0M | $367.5M | 59.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.9 pts
Year-over-year change
Sep 30, 2022
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by the relationship between cost of revenue and revenue: cost of revenue did not decrease as much as revenue sequentially, and increased more than revenue year-over-year.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, while gross margin decreased. Compared to the same quarter a year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was lower.
Monitor trends in distributor purchasing and inventory levels, as referenced in the filing’s discussion of business trends and economic conditions.