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Bio-Techne Corporation stock research

Mar 31, 2023

FY2023 Q3

Bio-Techne (TECH) Gross Margin — Quarter Ended Mar 31, 2023

Revenue increased compared to the previous quarter, and gross profit rose at a faster rate, leading to an improvement in gross margin. However, relative to the same quarter last year, revenue was higher but gross profit increased only modestly, resulting in a lower gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q3

Revenue increased compared to the previous quarter, and gross profit rose at a faster rate, leading to an improvement in gross margin. However, relative to the same quarter last year, revenue was higher but gross profit increased only modestly, resulting in a lower gross margin.

  • The gross margin improved sequentially, reflecting a larger increase in revenue relative to the increase in cost of revenue.
  • Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were slightly higher, but cost of revenue was higher and gross margin weakened.

Gross margin snapshot

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

Gross margin

68.7%

Gross profit

$202.2M

Revenue

$294.1M

Cost of revenue

$92.0M

Quarter-over-quarter change

n/a

Year-over-year change

-0.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$294.1M$202.2M$92.0M68.7%

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

Mar 31, 2022

-0.6 pts

What the margin says

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

The gross margin improved sequentially, reflecting a larger increase in revenue relative to the increase in cost of revenue.

Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were slightly higher, but cost of revenue was higher and gross margin weakened.

Monitor the year-over-year trend in cost of revenue growth relative to revenue growth, as the gross margin declined compared to the prior year.