Zoetis Inc. stock research
FY2023 Q2
Zoetis (ZTS) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was lower than a year ago but slightly higher than the preceding quarter, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was lower than a year ago but slightly higher than the preceding quarter, resulting in an improved gross margin.
- The gross margin improved sequentially and year-over-year, driven by revenue growth that outpaced the change in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was slightly higher, leading to a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.2%
Gross profit
$1.6B
Revenue
$2.2B
Cost of revenue
$607.0M
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+2.6 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 | $2.0B | $1.4B | $588.0M | 70.6% |
| Jun 30, 2023 | $2.2B | $1.6B | $607.0M | 72.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.6 pts
Year-over-year change
Jun 30, 2022
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by revenue growth that outpaced the change in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was slightly higher, leading to a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as it increased sequentially despite a larger revenue base.