Zimmer Biomet Holdings, Inc. stock research
FY2024 Q2
Zimmer Biomet Holdings (ZBH) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was consistent with both the prior quarter and the same quarter last year. Gross profit increased slightly year over year but decreased from the prior quarter, while cost of revenue rose, leading to a lower gross margin compared to both periods.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was consistent with both the prior quarter and the same quarter last year. Gross profit increased slightly year over year but decreased from the prior quarter, while cost of revenue rose, leading to a lower gross margin compared to both periods.
- The strongest observable margin driver is the increase in cost of revenue relative to revenue, which compressed gross margin. The filing includes a management discussion and analysis section that discusses results of operations, but no specific causes are cited beyond the financial data.
- Compared to the prior quarter, gross margin weakened as cost of revenue increased while revenue remained flat. Versus the same quarter a year ago, gross margin also declined, as cost of revenue grew faster than the modest increase in gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.5%
Gross profit
$1.4B
Revenue
$1.9B
Cost of revenue
$553.6M
Quarter-over-quarter change
-1.4 pts
Year-over-year change
-0.4 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 | $1.8B | $1.2B | $518.6M | 70.4% |
| Dec 31, 2023 | $1.9B | $1.4B | $538.8M | 72.2% |
| Mar 31, 2024 | $1.9B | $1.4B | $512.3M | 72.9% |
| Jun 30, 2024 | $1.9B | $1.4B | $553.6M | 71.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-1.4 pts
Year-over-year change
Jun 30, 2023
-0.4 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 cost of revenue relative to revenue, which compressed gross margin. The filing includes a management discussion and analysis section that discusses results of operations, but no specific causes are cited beyond the financial data.
Compared to the prior quarter, gross margin weakened as cost of revenue increased while revenue remained flat. Versus the same quarter a year ago, gross margin also declined, as cost of revenue grew faster than the modest increase in gross profit.
Monitor the cost of products sold (excluding intangible asset amortization), as it directly impacts gross margin and has shown an upward trend.