Vertex Pharmaceuticals Incorporated stock research
FY2023 Q1
Vertex Pharmaceuticals (VRTX) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased sequentially. Gross margin improved from the previous quarter and was slightly higher than the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased sequentially. Gross margin improved from the previous quarter and was slightly higher than the year-ago period.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which supported gross margin expansion. This is evident from the sequential decline in cost of revenue while revenue grew.
- Compared to the immediately preceding quarter, gross margin improved as revenue grew and cost of revenue declined. Versus the same quarter one year earlier, gross margin was slightly higher, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.8%
Gross profit
$2.1B
Revenue
$2.4B
Cost of revenue
$266.9M
Quarter-over-quarter change
n/a
Year-over-year change
+0.5 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 | $2.4B | $2.1B | $266.9M | 88.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which supported gross margin expansion. This is evident from the sequential decline in cost of revenue while revenue grew.
Compared to the immediately preceding quarter, gross margin improved as revenue grew and cost of revenue declined. Versus the same quarter one year earlier, gross margin was slightly higher, with revenue and gross profit both higher.
Monitor the trend in cost of revenue, as its sequential decline was a key factor in the gross margin improvement.