IDEXX Laboratories, Inc. stock research
FY2024 Q2
IDEXX Laboratories (IDXX) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose in both comparisons, while gross margin improved slightly from the prior quarter and more notably from a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose in both comparisons, while gross margin improved slightly from the prior quarter and more notably from a year ago.
- Gross margin improved sequentially and year-over-year, driven by a larger increase in gross profit relative to the rise in cost of revenue. The strongest observable driver is the widening gap between revenue growth and cost growth.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin slightly improved. Compared to the same quarter one year earlier, all three metrics were higher, and gross margin showed a more pronounced improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.7%
Gross profit
$619.2M
Revenue
$1.0B
Cost of revenue
$384.4M
Quarter-over-quarter change
+0.2 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2023 | $915.5M | $548.0M | $367.5M | 59.9% |
| Dec 31, 2023 | $901.6M | $526.2M | $375.4M | 58.4% |
| Mar 31, 2024 | $964.1M | $593.1M | $371.0M | 61.5% |
| Jun 30, 2024 | $1.0B | $619.2M | $384.4M | 61.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.2 pts
Year-over-year change
Jun 30, 2023
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially and year-over-year, driven by a larger increase in gross profit relative to the rise in cost of revenue. The strongest observable driver is the widening gap between revenue growth and cost growth.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin slightly improved. Compared to the same quarter one year earlier, all three metrics were higher, and gross margin showed a more pronounced improvement.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influences the sustainability of gross margin improvement.