Revvity, Inc. stock research
FY2023 Q3
Revvity (RVTY) Gross Margin — Quarter Ended Oct 1, 2023
Revenue, gross profit, and gross margin all decreased compared to both the prior quarter and the same quarter last year. Cost of revenue declined less proportionally than revenue, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Oct 1, 2023 · FY2023 Q3
Revenue, gross profit, and gross margin all decreased compared to both the prior quarter and the same quarter last year. Cost of revenue declined less proportionally than revenue, resulting in a lower gross margin.
- The gross margin weakened sequentially and year-over-year, driven by a higher relative cost of revenue. The decline in gross profit outpaced the decline in revenue, indicating margin pressure.
- Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue decreased at a slower rate, leading to a weaker gross margin. Versus the same quarter last year, all three metrics—revenue, gross profit, and gross margin—were lower, with cost of revenue declining less than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.5%
Gross profit
$372.5M
Revenue
$670.7M
Cost of revenue
$298.2M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-1.6 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 |
|---|---|---|---|---|
| Apr 2, 2023 | $674.9M | $381.4M | $293.5M | 56.5% |
| Jul 2, 2023 | $709.1M | $402.3M | $306.7M | 56.7% |
| Oct 1, 2023 | $670.7M | $372.5M | $298.2M | 55.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 2, 2023
-1.2 pts
Year-over-year change
Oct 2, 2022
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially and year-over-year, driven by a higher relative cost of revenue. The decline in gross profit outpaced the decline in revenue, indicating margin pressure.
Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue decreased at a slower rate, leading to a weaker gross margin. Versus the same quarter last year, all three metrics—revenue, gross profit, and gross margin—were lower, with cost of revenue declining less than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline is the primary observable factor behind the margin compression.