MR

Moderna, Inc. stock research

Sep 30, 2023

FY2023 Q3

Moderna (MRNA) Gross Margin — Quarter Ended Sep 30, 2023

Revenue increased compared to the prior quarter, yet gross profit remained negative and cost of revenue exceeded revenue, resulting in a negative gross margin. Versus the same quarter one year earlier, revenue was lower and gross profit turned from positive to negative, while cost of revenue rose, leading to a weakened gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue increased compared to the prior quarter, yet gross profit remained negative and cost of revenue exceeded revenue, resulting in a negative gross margin. Versus the same quarter one year earlier, revenue was lower and gross profit turned from positive to negative, while cost of revenue rose, leading to a weakened gross margin.

  • The most observable driver is the relationship between cost of revenue and revenue: cost of revenue was higher than revenue in the current quarter, which directly produced a negative gross margin. This pattern was absent in the year-ago quarter when cost of revenue was lower than revenue.
  • Compared to the immediately preceding quarter, gross margin improved from a more negative level to a less negative level, while revenue was higher and gross profit remained negative. Compared to the same quarter one year earlier, gross margin weakened sharply from positive to negative, with revenue lower and gross profit declining from positive to negative.

Gross margin snapshot

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

Gross margin

-22.4%

Gross profit

-$410.0M

Revenue

$1.8B

Cost of revenue

$2.2B

Quarter-over-quarter change

+90.1 pts

Year-over-year change

-89.7 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, 2023$1.9B$1.1B$792.0M57.5%
Jun 30, 2023$344.0M-$387.0M$731.0M-112.5%
Sep 30, 2023$1.8B-$410.0M$2.2B-22.4%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

+90.1 pts

Year-over-year change

Sep 30, 2022

-89.7 pts

What the margin says

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

The most observable driver is the relationship between cost of revenue and revenue: cost of revenue was higher than revenue in the current quarter, which directly produced a negative gross margin. This pattern was absent in the year-ago quarter when cost of revenue was lower than revenue.

Compared to the immediately preceding quarter, gross margin improved from a more negative level to a less negative level, while revenue was higher and gross profit remained negative. Compared to the same quarter one year earlier, gross margin weakened sharply from positive to negative, with revenue lower and gross profit declining from positive to negative.

Monitor whether cost of revenue continues to exceed revenue in future quarters, as this directly determines the sign of gross margin.