MN

Monster Beverage Corporation stock research

Jun 30, 2024

FY2024 Q2

Monster Beverage (MNST) Gross Margin — Quarter Ended Jun 30, 2024

Revenue remained stable compared to the prior quarter and the same quarter last year. Gross profit was slightly higher than a year ago, while cost of revenue was relatively unchanged, resulting in a gross margin that weakened from the prior quarter but improved from the same quarter last year.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue remained stable compared to the prior quarter and the same quarter last year. Gross profit was slightly higher than a year ago, while cost of revenue was relatively unchanged, resulting in a gross margin that weakened from the prior quarter but improved from the same quarter last year.

  • The strongest observable margin driver is the gross margin improvement compared to the same quarter last year, as gross profit increased while revenue remained stable. This suggests a favorable shift in the relationship between revenue and cost of revenue.
  • Compared to the prior quarter, gross margin weakened slightly as cost of revenue increased while revenue was unchanged. Compared to the same quarter last year, gross margin improved as gross profit rose while revenue was stable.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

53.6%

Gross profit

$1.0B

Revenue

$1.9B

Cost of revenue

$881.1M

Quarter-over-quarter change

-0.4 pts

Year-over-year change

+1.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$1.9B$983.8M$872.3M53.0%
Dec 31, 2023$1.7B$938.4M$791.7M54.2%
Mar 31, 2024$1.9B$1.0B$872.0M54.1%
Jun 30, 2024$1.9B$1.0B$881.1M53.6%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-0.4 pts

Year-over-year change

Jun 30, 2023

+1.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the gross margin improvement compared to the same quarter last year, as gross profit increased while revenue remained stable. This suggests a favorable shift in the relationship between revenue and cost of revenue.

Compared to the prior quarter, gross margin weakened slightly as cost of revenue increased while revenue was unchanged. Compared to the same quarter last year, gross margin improved as gross profit rose while revenue was stable.

Monitor the trend in cost of revenue relative to revenue, as a slight increase in cost of revenue this quarter led to a marginal weakening in gross margin from the prior quarter.