RV

Revvity, Inc. stock research

Jul 2, 2023

FY2023 Q2

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

Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue also rose. Gross margin improved slightly, but remained lower than the same quarter one year earlier, when revenue and gross profit were higher and cost of revenue was lower.

Gross margin takeaway

Quarter ended Jul 2, 2023 · FY2023 Q2

Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue also rose. Gross margin improved slightly, but remained lower than the same quarter one year earlier, when revenue and gross profit were higher and cost of revenue was lower.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew faster than cost of revenue compared to the prior quarter, leading to a modest gross margin improvement.
  • Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.

Gross margin snapshot

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

Gross margin

56.7%

Gross profit

$402.3M

Revenue

$709.1M

Cost of revenue

$306.7M

Quarter-over-quarter change

+0.2 pts

Year-over-year change

-4.9 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%
Jul 2, 2023$709.1M$402.3M$306.7M56.7%

Quarterly comparisons

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

Previous-quarter change

Apr 2, 2023

+0.2 pts

Year-over-year change

Jul 3, 2022

-4.9 pts

What the margin says

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

The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew faster than cost of revenue compared to the prior quarter, leading to a modest gross margin improvement.

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

Monitor the trend in service revenue, which declined substantially compared to the same quarter one year earlier.