ResMed Inc. stock research
FY2024 Q3
ResMed (RMD) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was lower than the prior quarter but higher than the year-ago quarter, resulting in a gross margin that strengthened sequentially and year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was lower than the prior quarter but higher than the year-ago quarter, resulting in a gross margin that strengthened sequentially and year-over-year.
- The gross margin improvement was driven by a combination of higher gross profit and a lower cost of revenue relative to revenue compared to the prior quarter. The year-over-year gain reflected a larger increase in gross profit than in cost of revenue.
- Compared to the immediately preceding quarter, gross margin was higher, supported by a lower cost of revenue and higher gross profit on similar revenue. Versus the same quarter one year earlier, gross margin was also higher, with gross profit rising more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.9%
Gross profit
$692.8M
Revenue
$1.2B
Cost of revenue
$504.2M
Quarter-over-quarter change
+2.2 pts
Year-over-year change
+2.6 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $1.1B | $617.4M | $504.7M | 55.0% |
| Sep 30, 2023 | $1.1B | $600.1M | $502.3M | 54.4% |
| Dec 31, 2023 | $1.2B | $646.9M | $515.9M | 55.6% |
| Mar 31, 2024 | $1.2B | $692.8M | $504.2M | 57.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.2 pts
Year-over-year change
Mar 31, 2023
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a combination of higher gross profit and a lower cost of revenue relative to revenue compared to the prior quarter. The year-over-year gain reflected a larger increase in gross profit than in cost of revenue.
Compared to the immediately preceding quarter, gross margin was higher, supported by a lower cost of revenue and higher gross profit on similar revenue. Versus the same quarter one year earlier, gross margin was also higher, with gross profit rising more than cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its decline contributed to the current margin improvement.