Welltower Inc. stock research
FY2024 Q2
Welltower (WELL) Gross Margin — Quarter Ended Jun 30, 2024
In the current quarter, revenue remained stable quarter over quarter but increased year over year, while cost of revenue was stable sequentially and higher annually. Gross profit rose both sequentially and year over year, leading to an improvement in gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
In the current quarter, revenue remained stable quarter over quarter but increased year over year, while cost of revenue was stable sequentially and higher annually. Gross profit rose both sequentially and year over year, leading to an improvement in gross margin.
- The strongest observable margin driver is the gross profit growth outpacing cost of revenue growth, resulting in margin expansion.
- Sequentially, gross margin improved from the prior quarter. Year over year, gross margin was higher compared to the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.2%
Gross profit
$282.2M
Revenue
$1.4B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+2.9 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 | $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% |
| Jun 30, 2024 | $1.4B | $282.2M | $1.1B | 20.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.9 pts
Year-over-year change
Jun 30, 2023
+2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross profit growth outpacing cost of revenue growth, resulting in margin expansion.
Sequentially, gross margin improved from the prior quarter. Year over year, gross margin was higher compared to the same quarter last year.
Monitor the trend of cost of revenue relative to revenue to assess sustainability of margin improvement.