Veeva Systems Inc. stock research
FY2024 Q1
Veeva Systems (VEEV) Gross Margin — Quarter Ended Apr 30, 2023
Revenue declined from the prior quarter while cost of revenue edged higher, resulting in lower gross profit and a weaker gross margin. Compared to the same quarter a year earlier, revenue was higher but cost of revenue grew more, leading to a lower gross profit and a narrower gross margin.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2024 Q1
Revenue declined from the prior quarter while cost of revenue edged higher, resulting in lower gross profit and a weaker gross margin. Compared to the same quarter a year earlier, revenue was higher but cost of revenue grew more, leading to a lower gross profit and a narrower gross margin.
- The most significant factor was the increase in cost of revenue as a share of revenue, which compressed the margin in both comparisons.
- The gross margin weakened compared to both the prior quarter and the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.3%
Gross profit
$359.7M
Revenue
$526.3M
Cost of revenue
$166.7M
Quarter-over-quarter change
-2.5 pts
Year-over-year change
-4.0 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $563.4M | $399.1M | $164.3M | 70.8% |
| Apr 30, 2023 | $526.3M | $359.7M | $166.7M | 68.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
-2.5 pts
Year-over-year change
Apr 30, 2022
-4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant factor was the increase in cost of revenue as a share of revenue, which compressed the margin in both comparisons.
The gross margin weakened compared to both the prior quarter and the same quarter one year earlier.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.