Vertex Pharmaceuticals Incorporated stock research
FY2023 Q3
Vertex Pharmaceuticals (VRTX) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit were stable compared to the prior quarter, while cost of revenue increased slightly, resulting in a marginally lower gross margin. Compared to the same quarter last year, revenue and gross profit improved, but cost of revenue also grew, leading to a gross margin that was slightly lower than the year-ago level.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit were stable compared to the prior quarter, while cost of revenue increased slightly, resulting in a marginally lower gross margin. Compared to the same quarter last year, revenue and gross profit improved, but cost of revenue also grew, leading to a gross margin that was slightly lower than the year-ago level.
- The relationship between revenue and gross profit remained consistent, with gross profit representing a high share of revenue in both comparative periods. The slight increase in cost of revenue was the primary factor behind the minor weakening of gross margin.
- Gross margin weakened slightly from both the immediately preceding quarter and the same quarter one year earlier, as cost of revenue grew faster than revenue. Revenue was higher than the year-ago quarter but level with the prior quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.2%
Gross profit
$2.2B
Revenue
$2.5B
Cost of revenue
$318.7M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-0.4 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% |
| Sep 30, 2023 | $2.5B | $2.2B | $318.7M | 87.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.5 pts
Year-over-year change
Sep 30, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and gross profit remained consistent, with gross profit representing a high share of revenue in both comparative periods. The slight increase in cost of revenue was the primary factor behind the minor weakening of gross margin.
Gross margin weakened slightly from both the immediately preceding quarter and the same quarter one year earlier, as cost of revenue grew faster than revenue. Revenue was higher than the year-ago quarter but level with the prior quarter.
Monitor the trajectory of cost of revenue, as its increase has outpaced revenue growth in both comparative periods.