Zebra Technologies Corporation stock research
FY2023 Q1
Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Apr 1, 2023
Revenue was lower than the prior quarter but matched the year-ago level. Gross profit decreased compared to the prior quarter and increased versus the year-ago quarter, while cost of revenue declined both sequentially and year-over-year, resulting in a gross margin that improved from both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Apr 1, 2023 · FY2023 Q1
Revenue was lower than the prior quarter but matched the year-ago level. Gross profit decreased compared to the prior quarter and increased versus the year-ago quarter, while cost of revenue declined both sequentially and year-over-year, resulting in a gross margin that improved from both the prior quarter and the same quarter last year.
- The gross margin improvement was driven by a larger relative decline in cost of revenue compared to the decline in revenue, both sequentially and year-over-year.
- Compared to the prior quarter, revenue was lower and gross profit was lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.5%
Gross profit
$667.0M
Revenue
$1.4B
Cost of revenue
$738.0M
Quarter-over-quarter change
n/a
Year-over-year change
+3.0 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $1.4B | $667.0M | $738.0M | 47.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Apr 2, 2022
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a larger relative decline in cost of revenue compared to the decline in revenue, both sequentially and year-over-year.
Compared to the prior quarter, revenue was lower and gross profit was lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its decline has been the primary factor behind margin expansion.