Veeva Systems Inc. stock research
FY2023 Q4
Veeva Systems (VEEV) Gross Margin — Quarter Ended Jan 31, 2023
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened versus both the immediate preceding quarter and the year-ago period.
Gross margin takeaway
Quarter ended Jan 31, 2023 · FY2023 Q4
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened versus both the immediate preceding quarter and the year-ago period.
- The increase in cost of revenue outpaced revenue growth, placing downward pressure on gross margin. The strongest observable driver is the cost of revenue rising faster than revenue on a sequential and year-over-year basis.
- Gross margin weakened compared to the immediately preceding quarter and the same quarter one year earlier. Revenue and gross profit improved relative to both prior periods, but cost of revenue increased at a greater rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.8%
Gross profit
$399.1M
Revenue
$563.4M
Cost of revenue
$164.3M
Quarter-over-quarter change
n/a
Year-over-year change
-1.2 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $563.4M | $399.1M | $164.3M | 70.8% |
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
Jan 31, 2022
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue outpaced revenue growth, placing downward pressure on gross margin. The strongest observable driver is the cost of revenue rising faster than revenue on a sequential and year-over-year basis.
Gross margin weakened compared to the immediately preceding quarter and the same quarter one year earlier. Revenue and gross profit improved relative to both prior periods, but cost of revenue increased at a greater rate.
Monitor the trend of cost of revenue relative to revenue, as its faster growth has compressed gross margin.