Vertex Pharmaceuticals Incorporated stock research
FY2024 Q2
Vertex Pharmaceuticals (VRTX) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit held steady from the previous quarter and increased year over year, while cost of revenue rose in both comparisons, resulting in a weaker gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit held steady from the previous quarter and increased year over year, while cost of revenue rose in both comparisons, resulting in a weaker gross margin.
- The gross margin weakened primarily because cost of revenue increased while revenue declined versus the prior quarter, and cost of revenue grew faster than revenue year over year.
- Compared to the immediately preceding quarter, gross margin was lower, as revenue decreased and cost of revenue increased. Compared to the same quarter one year earlier, gross margin was also lower, with cost of revenue rising more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
85.9%
Gross profit
$2.3B
Revenue
$2.6B
Cost of revenue
$371.9M
Quarter-over-quarter change
-1.3 pts
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $2.6B | $2.3B | $371.9M | 85.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-1.3 pts
Year-over-year change
Jun 30, 2023
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened primarily because cost of revenue increased while revenue declined versus the prior quarter, and cost of revenue grew faster than revenue year over year.
Compared to the immediately preceding quarter, gross margin was lower, as revenue decreased and cost of revenue increased. Compared to the same quarter one year earlier, gross margin was also lower, with cost of revenue rising more than revenue.
Monitor the trajectory of cost of revenue, as its growth has been a key factor in the gross margin compression.