Eli Lilly and Company stock research
FY2023 Q1
Eli Lilly and (LLY) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit were lower compared to both the preceding quarter and the same quarter one year earlier. Gross margin weakened from the preceding quarter but improved from the same quarter one year earlier, driven by a lower cost of revenue relative to revenue on a year-over-year basis.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit were lower compared to both the preceding quarter and the same quarter one year earlier. Gross margin weakened from the preceding quarter but improved from the same quarter one year earlier, driven by a lower cost of revenue relative to revenue on a year-over-year basis.
- The strongest observable margin driver is the change in cost of revenue. Compared to the same quarter last year, cost of revenue declined more sharply than revenue, expanding gross margin. Sequentially, cost of revenue rose while revenue fell, compressing margin.
- Relative to the preceding quarter, revenue and gross profit decreased while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, but cost of revenue was also lower, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.6%
Gross profit
$5.3B
Revenue
$7.0B
Cost of revenue
$1.6B
Quarter-over-quarter change
n/a
Year-over-year change
+3.2 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $7.0B | $5.3B | $1.6B | 76.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue. Compared to the same quarter last year, cost of revenue declined more sharply than revenue, expanding gross margin. Sequentially, cost of revenue rose while revenue fell, compressing margin.
Relative to the preceding quarter, revenue and gross profit decreased while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, but cost of revenue was also lower, leading to a higher gross margin.
Monitor the trajectory of cost of revenue, as its movement relative to revenue has been the primary factor behind margin changes.