Bio-Techne Corporation stock research
FY2024 Q2
Bio-Techne (TECH) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was slightly lower than the prior quarter but slightly higher than the same quarter one year earlier. Gross profit decreased compared with both periods, driven by a higher cost of revenue, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q2
Revenue was slightly lower than the prior quarter but slightly higher than the same quarter one year earlier. Gross profit decreased compared with both periods, driven by a higher cost of revenue, resulting in a weakened gross margin.
- The strongest observable margin driver is the increase in cost of revenue relative to revenue, as cost of revenue rose while revenue remained relatively flat compared with both the preceding quarter and the year-ago quarter.
- Compared with the immediately preceding quarter, gross margin weakened, with revenue lower and cost of revenue higher. Compared with the same quarter one year earlier, gross margin also weakened, as revenue was only slightly higher but cost of revenue was markedly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.8%
Gross profit
$176.6M
Revenue
$272.6M
Cost of revenue
$96.0M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-2.7 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% |
| Sep 30, 2023 | $276.9M | $185.2M | $91.7M | 66.9% |
| Dec 31, 2023 | $272.6M | $176.6M | $96.0M | 64.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-2.1 pts
Year-over-year change
Dec 31, 2022
-2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue relative to revenue, as cost of revenue rose while revenue remained relatively flat compared with both the preceding quarter and the year-ago quarter.
Compared with the immediately preceding quarter, gross margin weakened, with revenue lower and cost of revenue higher. Compared with the same quarter one year earlier, gross margin also weakened, as revenue was only slightly higher but cost of revenue was markedly higher.
Monitor the trajectory of cost of revenue, as its growth outpaced revenue in both comparisons.