Zimmer Biomet Holdings, Inc. stock research
FY2023 Q3
Zimmer Biomet Holdings (ZBH) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, gross profit, and cost of revenue all decreased from the prior quarter, resulting in a lower gross margin. Compared to the same quarter last year, revenue increased while gross profit remained similar, and cost of revenue rose, leading to a slightly weakened gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue all decreased from the prior quarter, resulting in a lower gross margin. Compared to the same quarter last year, revenue increased while gross profit remained similar, and cost of revenue rose, leading to a slightly weakened gross margin.
- The sequential decline in gross margin reflects a decrease in revenue alongside a smaller decrease in cost of revenue. Year over year, the gross margin was slightly lower as revenue growth was offset by a larger increase in cost of revenue.
- Revenue was lower than the previous quarter but higher than the same quarter last year. Gross profit decreased sequentially and was unchanged year over year. Cost of revenue decreased from the prior quarter but increased from a year ago. Gross margin weakened compared to both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.4%
Gross profit
$1.2B
Revenue
$1.8B
Cost of revenue
$518.6M
Quarter-over-quarter change
-1.5 pts
Year-over-year change
-0.3 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 | $1.8B | $1.3B | $500.8M | 72.6% |
| Jun 30, 2023 | $1.9B | $1.3B | $525.5M | 71.9% |
| Sep 30, 2023 | $1.8B | $1.2B | $518.6M | 70.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-1.5 pts
Year-over-year change
Sep 30, 2022
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin reflects a decrease in revenue alongside a smaller decrease in cost of revenue. Year over year, the gross margin was slightly lower as revenue growth was offset by a larger increase in cost of revenue.
Revenue was lower than the previous quarter but higher than the same quarter last year. Gross profit decreased sequentially and was unchanged year over year. Cost of revenue decreased from the prior quarter but increased from a year ago. Gross margin weakened compared to both periods.
Monitor the components of cost of revenue, particularly cost of products sold and intangible asset amortization, as detailed in the filing.