ZB

Zebra Technologies Corporation stock research

Sep 30, 2023

FY2023 Q3

Zebra Technologies (ZBRA) Gross Margin — Quarter Ended Sep 30, 2023

In the current quarter, revenue and gross profit were lower than both the preceding quarter and the same quarter one year earlier. The gross margin weakened compared to both periods.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

In the current quarter, revenue and gross profit were lower than both the preceding quarter and the same quarter one year earlier. The gross margin weakened compared to both periods.

  • The decline in gross margin was driven by revenue decreasing more than the corresponding reduction in cost of revenue relative to the prior quarter and the year-ago quarter.
  • Compared to the preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were also lower, with gross margin lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

44.7%

Gross profit

$427.0M

Revenue

$956.0M

Cost of revenue

$529.0M

Quarter-over-quarter change

-3.2 pts

Year-over-year change

-0.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$1.4B$667.0M$738.0M47.5%
Jul 1, 2023$1.2B$581.0M$633.0M47.9%
Sep 30, 2023$956.0M$427.0M$529.0M44.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jul 1, 2023

-3.2 pts

Year-over-year change

Oct 1, 2022

-0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The decline in gross margin was driven by revenue decreasing more than the corresponding reduction in cost of revenue relative to the prior quarter and the year-ago quarter.

Compared to the preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were also lower, with gross margin lower.

Monitor the relationship between cost of revenue and revenue trends in future quarters.