PO

Insulet Corporation stock research

Dec 31, 2023

FY2023 Q4

Insulet (PODD) Gross Margin — Quarter Ended Dec 31, 2023

Revenue increased relative to both the prior quarter and the year-ago quarter, and gross profit increased at a faster pace, resulting in a higher gross margin. Cost of revenue was lower than a year earlier and rose less than revenue sequentially, contributing to the margin improvement.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue increased relative to both the prior quarter and the year-ago quarter, and gross profit increased at a faster pace, resulting in a higher gross margin. Cost of revenue was lower than a year earlier and rose less than revenue sequentially, contributing to the margin improvement.

  • The gross margin strengthened as revenue grew while cost of revenue declined from the prior year, and increased more slowly than revenue sequentially.
  • Compared to the immediately preceding quarter, the gross margin was higher. Compared to the same quarter one year earlier, the gross margin was also higher.

Gross margin snapshot

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

Gross margin

70.9%

Gross profit

$361.2M

Revenue

$509.8M

Cost of revenue

$148.6M

Quarter-over-quarter change

+3.1 pts

Year-over-year change

+12.1 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$358.1M$240.5M$117.6M67.2%
Jun 30, 2023$396.5M$264.9M$131.6M66.8%
Sep 30, 2023$432.7M$293.3M$139.4M67.8%
Dec 31, 2023$509.8M$361.2M$148.6M70.9%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

+3.1 pts

Year-over-year change

Dec 31, 2022

+12.1 pts

What the margin says

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

The gross margin strengthened as revenue grew while cost of revenue declined from the prior year, and increased more slowly than revenue sequentially.

Compared to the immediately preceding quarter, the gross margin was higher. Compared to the same quarter one year earlier, the gross margin was also higher.

Monitor the trend of cost of revenue as a percentage of revenue, given its divergent movement relative to revenue.

PODD Gross Margin — Quarter Ended Dec 31, 2023