VL

Veralto Corporation stock research

Dec 31, 2023

FY2023 Q4

Veralto (VLTO) Gross Margin — Quarter Ended Dec 31, 2023

Revenue held steady quarter over quarter, while gross profit rose and cost of revenue increased, resulting in a higher gross margin. Compared with the same quarter a year ago, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue held steady quarter over quarter, while gross profit rose and cost of revenue increased, resulting in a higher gross margin. Compared with the same quarter a year ago, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.

  • The gross margin improved both sequentially and year over year, driven by gross profit growing at a faster pace than cost of revenue relative to revenue.
  • Sequentially, revenue was stable, gross profit was higher, and cost of revenue was higher, leading to an improved gross margin. Year over year, all three metrics were higher, with gross margin strengthening.

Gross margin snapshot

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

Gross margin

57.9%

Gross profit

$746.0M

Revenue

$1.3B

Cost of revenue

$542.0M

Quarter-over-quarter change

+0.3 pts

Year-over-year change

+0.9 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$1.2B$708.0M$517.0M57.8%
Jun 30, 2023$1.3B$724.0M$529.0M57.8%
Sep 29, 2023$1.3B$723.0M$532.0M57.6%
Dec 31, 2023$1.3B$746.0M$542.0M57.9%

Quarterly comparisons

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

Previous-quarter change

Sep 29, 2023

+0.3 pts

Year-over-year change

Dec 31, 2022

+0.9 pts

What the margin says

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

The gross margin improved both sequentially and year over year, driven by gross profit growing at a faster pace than cost of revenue relative to revenue.

Sequentially, revenue was stable, gross profit was higher, and cost of revenue was higher, leading to an improved gross margin. Year over year, all three metrics were higher, with gross margin strengthening.

Monitor the relationship between cost of revenue and revenue, as cost of revenue increased sequentially even as revenue held flat.

VLTO Gross Margin — Quarter Ended Dec 31, 2023