Veralto Corporation stock research
FY2023 Q3
Veralto (VLTO) Gross Margin — Quarter Ended Sep 29, 2023
Revenue was flat compared to the prior quarter, while gross profit and cost of revenue both decreased slightly, resulting in a marginal weakening of gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2023 Q3
Revenue was flat compared to the prior quarter, while gross profit and cost of revenue both decreased slightly, resulting in a marginal weakening of gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
- Gross margin improved year over year, driven by a proportionally smaller increase in cost of revenue relative to the increase in revenue. The strongest observable driver is the relative stability of cost of revenue growth versus revenue growth.
- Versus the prior quarter, revenue was stable, gross profit was slightly lower, cost of revenue was slightly higher, and gross margin weakened marginally. Versus the same quarter one year ago, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.6%
Gross profit
$723.0M
Revenue
$1.3B
Cost of revenue
$532.0M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.7 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 | $1.2B | $708.0M | $517.0M | 57.8% |
| Jun 30, 2023 | $1.3B | $724.0M | $529.0M | 57.8% |
| Sep 29, 2023 | $1.3B | $723.0M | $532.0M | 57.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.2 pts
Year-over-year change
Sep 30, 2022
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved year over year, driven by a proportionally smaller increase in cost of revenue relative to the increase in revenue. The strongest observable driver is the relative stability of cost of revenue growth versus revenue growth.
Versus the prior quarter, revenue was stable, gross profit was slightly lower, cost of revenue was slightly higher, and gross margin weakened marginally. Versus the same quarter one year ago, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor whether cost of revenue continues to increase at a slower rate than revenue to sustain or improve gross margin.