Revvity, Inc. stock research
FY2024 Q2
Revvity (RVTY) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. Relative to the same quarter last year, revenue and gross profit were lower, cost of revenue was nearly flat, and gross margin weakened.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. Relative to the same quarter last year, revenue and gross profit were lower, cost of revenue was nearly flat, and gross margin weakened.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue from the prior quarter, which directly supported the gross margin improvement.
- Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter one year earlier, gross margin weakened because revenue declined while cost of revenue remained relatively stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.7%
Gross profit
$385.5M
Revenue
$691.7M
Cost of revenue
$306.2M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| Jul 2, 2023 | $709.1M | $402.3M | $306.7M | 56.7% |
| Oct 1, 2023 | $670.7M | $372.5M | $298.2M | 55.5% |
| Mar 31, 2024 | $649.9M | $355.0M | $294.9M | 54.6% |
| Jun 30, 2024 | $691.7M | $385.5M | $306.2M | 55.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.1 pts
Year-over-year change
Jul 2, 2023
-1.0 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 growth and cost of revenue growth. Revenue increased more than cost of revenue from the prior quarter, which directly supported the gross margin improvement.
Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter one year earlier, gross margin weakened because revenue declined while cost of revenue remained relatively stable.
Monitor the trend in cost of revenue relative to revenue, as its stability year-over-year despite lower revenue was a key factor in the margin decline.