RV

Revvity, Inc. stock research

Apr 2, 2023

FY2023 Q1

Revvity (RVTY) Gross Margin — Quarter Ended Apr 2, 2023

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened relative to both comparison periods, reflecting that the reduction in gross profit outpaced the decline in revenue.

Gross margin takeaway

Quarter ended Apr 2, 2023 · FY2023 Q1

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened relative to both comparison periods, reflecting that the reduction in gross profit outpaced the decline in revenue.

  • The gross margin decline was driven by a proportionally larger drop in gross profit relative to revenue, as cost of revenue did not fall at the same rate. The strongest observable driver is the shift in revenue composition between product and service lines, with service revenue showing a sharper decrease.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and gross margin—were lower, while cost of revenue also decreased.

Gross margin snapshot

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

Gross margin

56.5%

Gross profit

$381.4M

Revenue

$674.9M

Cost of revenue

$293.5M

Quarter-over-quarter change

n/a

Year-over-year change

-5.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Apr 2, 2023$674.9M$381.4M$293.5M56.5%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Apr 3, 2022

-5.2 pts

What the margin says

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

The gross margin decline was driven by a proportionally larger drop in gross profit relative to revenue, as cost of revenue did not fall at the same rate. The strongest observable driver is the shift in revenue composition between product and service lines, with service revenue showing a sharper decrease.

Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and gross margin—were lower, while cost of revenue also decreased.

Monitor the trajectory of service revenue, which experienced a substantial decline compared to the prior year quarter.

RVTY Gross Margin — Quarter Ended Apr 2, 2023