Vertex Pharmaceuticals Incorporated stock research
FY2024 Q1
Vertex Pharmaceuticals (VRTX) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened relative to the same quarter a year ago.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened relative to the same quarter a year ago.
- The gross margin improvement from the prior quarter was driven by a higher gross profit relative to revenue, as cost of revenue decreased. The year-over-year decline in gross margin reflects a proportionally larger increase in cost of revenue compared to revenue.
- Compared to the prior quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter last year, gross margin weakened due to a larger increase in cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.3%
Gross profit
$2.3B
Revenue
$2.7B
Cost of revenue
$342.6M
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-1.5 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.5B | $2.2B | $308.6M | 87.6% |
| Sep 30, 2023 | $2.5B | $2.2B | $318.7M | 87.2% |
| Dec 31, 2023 | $2.5B | $2.1B | $368.0M | 85.4% |
| Mar 31, 2024 | $2.7B | $2.3B | $342.6M | 87.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+1.9 pts
Year-over-year change
Mar 31, 2023
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by a higher gross profit relative to revenue, as cost of revenue decreased. The year-over-year decline in gross margin reflects a proportionally larger increase in cost of revenue compared to revenue.
Compared to the prior quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter last year, gross margin weakened due to a larger increase in cost of revenue relative to revenue.
Monitor the trend in cost of revenue relative to revenue, as its proportion increased year-over-year.