IDEXX Laboratories, Inc. stock research
FY2024 Q3
IDEXX Laboratories (IDXX) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to the same quarter last year, while cost of revenue grew at a slower pace, resulting in a higher gross profit and an improved gross margin. Sequentially, revenue declined slightly, and gross profit decreased more than cost of revenue, leading to a modest weakening in gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to the same quarter last year, while cost of revenue grew at a slower pace, resulting in a higher gross profit and an improved gross margin. Sequentially, revenue declined slightly, and gross profit decreased more than cost of revenue, leading to a modest weakening in gross margin.
- The year-over-year improvement in gross margin was the strongest observable driver, as gross profit increased at a higher rate than revenue relative to the prior year period.
- Compared to the immediately preceding quarter, revenue and gross profit were both lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.1%
Gross profit
$596.0M
Revenue
$975.5M
Cost of revenue
$379.5M
Quarter-over-quarter change
-0.6 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $975.5M | $596.0M | $379.5M | 61.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.6 pts
Year-over-year change
Sep 30, 2023
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was the strongest observable driver, as gross profit increased at a higher rate than revenue relative to the prior year period.
Compared to the immediately preceding quarter, revenue and gross profit were both lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor distributor purchasing patterns and inventory levels, as referenced in the filing's discussion of trends in companion animal healthcare and distributor inventories.