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Bio-Techne Corporation stock research

Sep 30, 2023

FY2024 Q1

Bio-Techne (TECH) Gross Margin — Quarter Ended Sep 30, 2023

Revenue decreased compared to the previous quarter but increased year-over-year. Gross margin weakened slightly from the prior quarter while improving compared to the same quarter last year.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2024 Q1

Revenue decreased compared to the previous quarter but increased year-over-year. Gross margin weakened slightly from the prior quarter while improving compared to the same quarter last year.

  • The gross margin change from the previous quarter was driven by a proportionally larger decline in revenue relative to cost of revenue. Year-over-year margin improvement resulted from revenue growth outpacing cost growth.
  • Compared to the previous quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin improved.

Gross margin snapshot

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

Gross margin

66.9%

Gross profit

$185.2M

Revenue

$276.9M

Cost of revenue

$91.7M

Quarter-over-quarter change

-1.1 pts

Year-over-year change

+0.3 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%
Jun 30, 2023$301.3M$204.7M$96.6M67.9%
Sep 30, 2023$276.9M$185.2M$91.7M66.9%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-1.1 pts

Year-over-year change

Sep 30, 2022

+0.3 pts

What the margin says

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

The gross margin change from the previous quarter was driven by a proportionally larger decline in revenue relative to cost of revenue. Year-over-year margin improvement resulted from revenue growth outpacing cost growth.

Compared to the previous quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin improved.

Given the sequential decline in revenue, monitor whether this trend continues into subsequent quarters.