Vertex Pharmaceuticals Incorporated stock research
FY2023 Q2
Vertex Pharmaceuticals (VRTX) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased, but cost of revenue rose more sharply, resulting in a lower gross margin. Gross margin decreased compared with both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased, but cost of revenue rose more sharply, resulting in a lower gross margin. Gross margin decreased compared with both the immediately preceding quarter and the same quarter one year earlier.
- The increase in cost of revenue outpaced the growth in revenue, which was the primary observable factor compressing gross margin.
- Gross margin weakened relative to the prior quarter and also compared with the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.6%
Gross profit
$2.2B
Revenue
$2.5B
Cost of revenue
$308.6M
Quarter-over-quarter change
-1.1 pts
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% |
| Jun 30, 2023 | $2.5B | $2.2B | $308.6M | 87.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.1 pts
Year-over-year change
Jun 30, 2022
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue outpaced the growth in revenue, which was the primary observable factor compressing gross margin.
Gross margin weakened relative to the prior quarter and also compared with the same quarter last year.
Monitor the relationship between cost of revenue growth and revenue growth in upcoming quarters.