Welltower Inc. stock research
FY2024 Q1
Welltower (WELL) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and cost of revenue both increased from the prior quarter and the same quarter last year, with gross profit rising more than cost of revenue, leading to a higher gross margin. The gross margin improved compared to both the immediately preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and cost of revenue both increased from the prior quarter and the same quarter last year, with gross profit rising more than cost of revenue, leading to a higher gross margin. The gross margin improved compared to both the immediately preceding quarter and the year-ago quarter.
- The strongest observable margin driver is the increase in gross profit relative to revenue, which outpaced the growth in cost of revenue, resulting in gross margin expansion.
- Compared to the previous quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and cost of revenue were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.4%
Gross profit
$263.4M
Revenue
$1.4B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+4.0 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 | $1.2B | $200.8M | $958.7M | 17.3% |
| Sep 30, 2023 | $1.2B | $204.5M | $995.3M | 17.0% |
| Dec 31, 2023 | $1.3B | $226.8M | $1.0B | 18.0% |
| Mar 31, 2024 | $1.4B | $263.4M | $1.1B | 19.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+1.4 pts
Year-over-year change
Mar 31, 2023
+4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to revenue, which outpaced the growth in cost of revenue, resulting in gross margin expansion.
Compared to the previous quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and cost of revenue were higher in both comparisons.
Monitor whether the current quarter's gross margin level can be sustained given the growth in both revenue and cost of revenue.