PO

Insulet Corporation stock research

Jun 30, 2023

FY2023 Q2

Insulet (PODD) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the year-ago period but edged lower sequentially.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the year-ago period but edged lower sequentially.

  • The year-over-year improvement in gross margin was the primary observable driver, as gross profit rose at a faster pace than revenue relative to the same quarter last year.
  • Compared to the prior quarter, gross margin was slightly lower as cost of revenue grew more quickly relative to revenue. Compared to the same quarter one year earlier, gross margin was higher as a larger share of revenue was retained as gross profit.

Gross margin snapshot

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

Gross margin

66.8%

Gross profit

$264.9M

Revenue

$396.5M

Cost of revenue

$131.6M

Quarter-over-quarter change

-0.4 pts

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.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$358.1M$240.5M$117.6M67.2%
Jun 30, 2023$396.5M$264.9M$131.6M66.8%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

-0.4 pts

Year-over-year change

Jun 30, 2022

+3.2 pts

What the margin says

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

The year-over-year improvement in gross margin was the primary observable driver, as gross profit rose at a faster pace than revenue relative to the same quarter last year.

Compared to the prior quarter, gross margin was slightly lower as cost of revenue grew more quickly relative to revenue. Compared to the same quarter one year earlier, gross margin was higher as a larger share of revenue was retained as gross profit.

Monitor the trend of cost of revenue growth relative to revenue growth to assess future gross margin direction.