ID

IDEXX Laboratories, Inc. stock research

Mar 31, 2024

FY2024 Q1

IDEXX Laboratories (IDXX) Gross Margin — Quarter Ended Mar 31, 2024

Revenue, gross profit, and gross margin all increased compared to the prior quarter and the same quarter last year. The gross margin improvement reflected a higher revenue base while cost of revenue remained relatively stable.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue, gross profit, and gross margin all increased compared to the prior quarter and the same quarter last year. The gross margin improvement reflected a higher revenue base while cost of revenue remained relatively stable.

  • The strongest observable driver is the favorable change in the relationship between revenue and cost of revenue, as revenue grew in both comparisons while cost of revenue moved less proportionally.
  • Compared to the previous quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were higher, while cost of revenue was also higher.

Gross margin snapshot

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

Gross margin

61.5%

Gross profit

$593.1M

Revenue

$964.1M

Cost of revenue

$371.0M

Quarter-over-quarter change

+3.2 pts

Year-over-year change

+1.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Mar 31, 2024$964.1M$593.1M$371.0M61.5%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

+3.2 pts

Year-over-year change

Mar 31, 2023

+1.2 pts

What the margin says

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

The strongest observable driver is the favorable change in the relationship between revenue and cost of revenue, as revenue grew in both comparisons while cost of revenue moved less proportionally.

Compared to the previous quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were higher, while cost of revenue was also higher.

Monitor the trend of cost of revenue relative to revenue, as it decreased sequentially but increased year-over-year.