Welltower Inc. stock research
FY2023 Q2
Welltower (WELL) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased from the prior quarter, while gross profit rose at a faster pace, leading to an improvement in gross margin. Compared to the same quarter a year ago, revenue was lower and gross profit decreased substantially, resulting in a significantly weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased from the prior quarter, while gross profit rose at a faster pace, leading to an improvement in gross margin. Compared to the same quarter a year ago, revenue was lower and gross profit decreased substantially, resulting in a significantly weakened gross margin.
- The relationship between revenue and cost of revenue drove the gross margin change. In the current quarter, despite a revenue increase from the prior quarter, the cost of revenue remained nearly flat, allowing gross profit and gross margin to improve.
- Gross margin improved from the immediately preceding quarter but was lower than the same quarter one year earlier. Revenue rose sequentially but fell compared to the year-ago period, while cost of revenue grew moderately from the prior quarter and increased from a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.3%
Gross profit
$200.8M
Revenue
$1.2B
Cost of revenue
$958.7M
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-24.7 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.1B | $173.9M | $957.8M | 15.4% |
| Jun 30, 2023 | $1.2B | $200.8M | $958.7M | 17.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.9 pts
Year-over-year change
Jun 30, 2022
-24.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin change. In the current quarter, despite a revenue increase from the prior quarter, the cost of revenue remained nearly flat, allowing gross profit and gross margin to improve.
Gross margin improved from the immediately preceding quarter but was lower than the same quarter one year earlier. Revenue rose sequentially but fell compared to the year-ago period, while cost of revenue grew moderately from the prior quarter and increased from a year ago.
Monitor the trajectory of cost of revenue relative to revenue, as it remained elevated year over year while revenue declined.