Veeva Systems Inc. stock research
FY2024 Q3
Veeva Systems (VEEV) Gross Margin — Quarter Ended Oct 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross profit rose accordingly, and gross margin improved relative to both periods.
Gross margin takeaway
Quarter ended Oct 31, 2023 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross profit rose accordingly, and gross margin improved relative to both periods.
- Revenue grew while cost of revenue declined from the prior quarter, and the year-over-year increase in revenue outpaced the increase in cost of revenue, resulting in a higher gross margin.
- Compared to the immediately preceding quarter, gross margin strengthened, driven by higher revenue and lower cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue rising more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.8%
Gross profit
$448.8M
Revenue
$616.5M
Cost of revenue
$167.7M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+0.7 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% |
| Oct 31, 2023 | $616.5M | $448.8M | $167.7M | 72.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2023
+1.4 pts
Year-over-year change
Oct 31, 2022
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue grew while cost of revenue declined from the prior quarter, and the year-over-year increase in revenue outpaced the increase in cost of revenue, resulting in a higher gross margin.
Compared to the immediately preceding quarter, gross margin strengthened, driven by higher revenue and lower cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue rising more than cost of revenue.
Monitor the trend of cost of revenue, as it decreased sequentially but increased year over year, and its relationship with revenue growth.