Keurig Dr Pepper Inc. stock research
FY2023 Q4
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and lower than a year ago. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and lower than a year ago. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue and cost of revenue.
- The gross margin improvement was driven by revenue growing faster than cost of revenue relative to both comparison periods. The strongest observable driver is the year-over-year reduction in cost of revenue alongside higher revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.5%
Gross profit
$2.2B
Revenue
$3.9B
Cost of revenue
$1.7B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+4.0 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.4B | $1.7B | $1.6B | 52.0% |
| Jun 30, 2023 | $3.8B | $2.0B | $1.7B | 53.9% |
| Sep 30, 2023 | $3.8B | $2.1B | $1.7B | 55.5% |
| Dec 31, 2023 | $3.9B | $2.2B | $1.7B | 56.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.0 pts
Year-over-year change
Dec 31, 2022
+4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growing faster than cost of revenue relative to both comparison periods. The strongest observable driver is the year-over-year reduction in cost of revenue alongside higher revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of cost of revenue, which declined year-over-year but held steady sequentially, as any change could affect gross margin stability.