Welltower Inc. stock research
FY2024 Q3
Welltower (WELL) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the preceding quarter but improved from the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the preceding quarter but improved from the year-ago period.
- Revenue growth exceeded the increase in cost of revenue when compared with the same quarter one year earlier, supporting the year-over-year margin improvement.
- Compared to the prior quarter, gross margin was slightly lower as revenue and cost of revenue both rose, with cost growing at a marginally faster pace. Relative to the same quarter last year, gross margin was higher, driven by a larger proportionate increase in revenue versus cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.8%
Gross profit
$298.8M
Revenue
$1.5B
Cost of revenue
$1.2B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+2.7 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $1.5B | $298.8M | $1.2B | 19.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.5 pts
Year-over-year change
Sep 30, 2023
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth exceeded the increase in cost of revenue when compared with the same quarter one year earlier, supporting the year-over-year margin improvement.
Compared to the prior quarter, gross margin was slightly lower as revenue and cost of revenue both rose, with cost growing at a marginally faster pace. Relative to the same quarter last year, gross margin was higher, driven by a larger proportionate increase in revenue versus cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate can directly affect gross margin stability.