ID

IDEXX Laboratories, Inc. stock research

Dec 31, 2023

FY2023 Q4

IDEXX Laboratories (IDXX) Gross Margin — Quarter Ended Dec 31, 2023

Revenue and gross profit increased year-over-year but declined sequentially, while gross margin weakened slightly from the prior quarter and remained broadly stable compared to the same quarter last year.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue and gross profit increased year-over-year but declined sequentially, while gross margin weakened slightly from the prior quarter and remained broadly stable compared to the same quarter last year.

  • The sequential decline in gross margin was driven by cost of revenue increasing at a faster pace than revenue when comparing the current quarter to the immediately preceding quarter.
  • Gross margin was lower than the prior quarter but nearly unchanged from the same quarter one year ago.

Gross margin snapshot

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

Gross margin

58.4%

Gross profit

$526.2M

Revenue

$901.6M

Cost of revenue

$375.4M

Quarter-over-quarter change

-1.5 pts

Year-over-year change

-0.2 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%
Sep 30, 2023$915.5M$548.0M$367.5M59.9%
Dec 31, 2023$901.6M$526.2M$375.4M58.4%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-1.5 pts

Year-over-year change

Dec 31, 2022

-0.2 pts

What the margin says

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

The sequential decline in gross margin was driven by cost of revenue increasing at a faster pace than revenue when comparing the current quarter to the immediately preceding quarter.

Gross margin was lower than the prior quarter but nearly unchanged from the same quarter one year ago.

Monitor the trend of cost of revenue relative to revenue, as its growth rate compared to the prior quarter was the primary factor behind the margin change.

IDXX Gross Margin — Quarter Ended Dec 31, 2023