Bio-Techne Corporation stock research
FY2023 Q4
Bio-Techne (TECH) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit were higher compared to both the immediately preceding quarter and the same quarter one year earlier. However, the gross margin weakened due to a proportionally larger increase in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue and gross profit were higher compared to both the immediately preceding quarter and the same quarter one year earlier. However, the gross margin weakened due to a proportionally larger increase in cost of revenue relative to revenue.
- The strongest observable margin driver is the relative growth of cost of revenue. Cost of revenue increased at a higher rate than revenue, compressing the gross margin.
- Sequentially, gross margin declined from the prior quarter as cost of revenue grew faster than revenue. Year-over-year, gross margin also weakened, with cost of revenue rising more sharply than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.9%
Gross profit
$204.7M
Revenue
$301.3M
Cost of revenue
$96.6M
Quarter-over-quarter change
-0.8 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $294.1M | $202.2M | $92.0M | 68.7% |
| Jun 30, 2023 | $301.3M | $204.7M | $96.6M | 67.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.8 pts
Year-over-year change
Jun 30, 2022
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative growth of cost of revenue. Cost of revenue increased at a higher rate than revenue, compressing the gross margin.
Sequentially, gross margin declined from the prior quarter as cost of revenue grew faster than revenue. Year-over-year, gross margin also weakened, with cost of revenue rising more sharply than revenue.
Monitor the trend of cost of revenue growth relative to revenue growth.