Welltower Inc. stock research
FY2023 Q1
Welltower (WELL) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit were lower compared to the same quarter one year earlier, while cost of revenue was higher, resulting in a weakened gross margin. Relative to the immediately preceding quarter, revenue and gross profit shifted from negative to positive values, and gross margin improved from an anomalous level to a normalized figure.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit were lower compared to the same quarter one year earlier, while cost of revenue was higher, resulting in a weakened gross margin. Relative to the immediately preceding quarter, revenue and gross profit shifted from negative to positive values, and gross margin improved from an anomalous level to a normalized figure.
- The gross margin decline from the year-ago quarter is most directly associated with a larger proportional increase in cost of revenue relative to the drop in revenue. Revenue fell while cost of revenue rose, compressing the spread that generates gross profit.
- Compared to the prior quarter, revenue and gross profit transitioned from negative to positive, and gross margin improved from a non-standard high level to a typical single-digit figure. Versus the same quarter a year ago, revenue, gross profit, and gross margin were all lower, while cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.4%
Gross profit
$173.9M
Revenue
$1.1B
Cost of revenue
$957.8M
Quarter-over-quarter change
n/a
Year-over-year change
-23.5 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 | $1.1B | $173.9M | $957.8M | 15.4% |
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
-23.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline from the year-ago quarter is most directly associated with a larger proportional increase in cost of revenue relative to the drop in revenue. Revenue fell while cost of revenue rose, compressing the spread that generates gross profit.
Compared to the prior quarter, revenue and gross profit transitioned from negative to positive, and gross margin improved from a non-standard high level to a typical single-digit figure. Versus the same quarter a year ago, revenue, gross profit, and gross margin were all lower, while cost of revenue was higher.
Monitor whether cost of revenue continues to outpace revenue trends, as this dynamic directly pressures gross margin.