ID

IDEXX Laboratories, Inc. stock research

Dec 31, 2024

FY2024 Q4

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

Revenue decreased and gross profit decreased from the previous quarter, while cost of revenue increased slightly, leading to a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased and gross margin improved, with cost of revenue rising less than revenue.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue decreased and gross profit decreased from the previous quarter, while cost of revenue increased slightly, leading to a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased and gross margin improved, with cost of revenue rising less than revenue.

  • The sequential decline in gross margin was driven by a decrease in revenue alongside a modest increase in cost of revenue. Year-over-year margin improvement reflected revenue growth outpacing cost growth.
  • Sequentially, revenue and gross profit were lower, and gross margin weakened. Year-over-year, 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

59.8%

Gross profit

$570.7M

Revenue

$954.3M

Cost of revenue

$383.6M

Quarter-over-quarter change

-1.3 pts

Year-over-year change

+1.4 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, 2024$964.1M$593.1M$371.0M61.5%
Jun 30, 2024$1.0B$619.2M$384.4M61.7%
Sep 30, 2024$975.5M$596.0M$379.5M61.1%
Dec 31, 2024$954.3M$570.7M$383.6M59.8%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-1.3 pts

Year-over-year change

Dec 31, 2023

+1.4 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 a decrease in revenue alongside a modest increase in cost of revenue. Year-over-year margin improvement reflected revenue growth outpacing cost growth.

Sequentially, revenue and gross profit were lower, and gross margin weakened. Year-over-year, revenue, gross profit, and gross margin were all higher.

Monitor the relative growth rates of revenue and cost of revenue, as changes in their relationship directly affect gross margin.