Veeva Systems Inc. stock research
FY2024 Q2
Veeva Systems (VEEV) Gross Margin — Quarter Ended Jul 31, 2023
Revenue, gross profit, and cost of revenue all increased compared with the prior quarter and the same quarter a year earlier. The gross margin improved from the prior quarter but was slightly lower than the year-ago level, reflecting changes in the relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jul 31, 2023 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased compared with the prior quarter and the same quarter a year earlier. The gross margin improved from the prior quarter but was slightly lower than the year-ago level, reflecting changes in the relationship between revenue and cost of revenue.
- The gross margin improvement from the prior quarter was driven by revenue increasing more than cost of revenue, while the slight decline from a year ago was due to cost of revenue growing at a similar pace to revenue.
- Compared with the prior quarter, revenue and gross profit were higher and cost of revenue was slightly higher, resulting in an improved gross margin. Compared with the same quarter a year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.4%
Gross profit
$421.2M
Revenue
$590.2M
Cost of revenue
$169.0M
Quarter-over-quarter change
+3.0 pts
Year-over-year change
-0.2 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% |
| Apr 30, 2023 | $526.3M | $359.7M | $166.7M | 68.3% |
| Jul 31, 2023 | $590.2M | $421.2M | $169.0M | 71.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
+3.0 pts
Year-over-year change
Jul 31, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by revenue increasing more than cost of revenue, while the slight decline from a year ago was due to cost of revenue growing at a similar pace to revenue.
Compared with the prior quarter, revenue and gross profit were higher and cost of revenue was slightly higher, resulting in an improved gross margin. Compared with the same quarter a year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Monitor the trend of cost of revenue relative to revenue, as the year-over-year comparison showed a slight weakening in gross margin.