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Bio-Techne Corporation stock research

Mar 31, 2024

FY2024 Q3

Bio-Techne (TECH) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both increased from the prior quarter, with gross profit rising more than proportionally, leading to an improved gross margin. Compared to the same quarter a year ago, revenue was higher but cost of revenue increased at a faster pace, resulting in a slightly weaker gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q3

Revenue and gross profit both increased from the prior quarter, with gross profit rising more than proportionally, leading to an improved gross margin. Compared to the same quarter a year ago, revenue was higher but cost of revenue increased at a faster pace, resulting in a slightly weaker gross margin.

  • The sequential improvement in gross margin was driven by revenue growth outpacing cost growth. Year-over-year, cost growth exceeded revenue growth, compressing margin.
  • Sequentially, gross margin improved from the prior quarter. Year-over-year, gross margin weakened compared to the same quarter last year.

Gross margin snapshot

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

Gross margin

67.4%

Gross profit

$204.6M

Revenue

$303.4M

Cost of revenue

$98.8M

Quarter-over-quarter change

+2.6 pts

Year-over-year change

-1.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$301.3M$204.7M$96.6M67.9%
Sep 30, 2023$276.9M$185.2M$91.7M66.9%
Dec 31, 2023$272.6M$176.6M$96.0M64.8%
Mar 31, 2024$303.4M$204.6M$98.8M67.4%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

+2.6 pts

Year-over-year change

Mar 31, 2023

-1.3 pts

What the margin says

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

The sequential improvement in gross margin was driven by revenue growth outpacing cost growth. Year-over-year, cost growth exceeded revenue growth, compressing margin.

Sequentially, gross margin improved from the prior quarter. Year-over-year, gross margin weakened compared to the same quarter last year.

Monitor the relative growth rates of revenue and cost of revenue, as any divergence could affect gross margin stability.