Veeva Systems Inc. stock research
FY2024 Q4
Veeva Systems (VEEV) Gross Margin — Quarter Ended Jan 31, 2024
Revenue increased, and gross profit rose accordingly, while cost of revenue also grew. Gross margin weakened slightly compared to the prior quarter but improved versus the same quarter last year.
Gross margin takeaway
Quarter ended Jan 31, 2024 · FY2024 Q4
Revenue increased, and gross profit rose accordingly, while cost of revenue also grew. Gross margin weakened slightly compared to the prior quarter but improved versus the same quarter last year.
- The strongest observable driver is the gross margin improvement compared to the same quarter last year, combined with higher gross profit and revenue. However, the sequential decline in gross margin indicates that cost of revenue increased at a faster rate than revenue from the prior quarter.
- Relative to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, all three measures—revenue, gross profit, and gross margin—were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.4%
Gross profit
$456.7M
Revenue
$630.6M
Cost of revenue
$173.9M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| 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% |
| Jan 31, 2024 | $630.6M | $456.7M | $173.9M | 72.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2023
-0.4 pts
Year-over-year change
Jan 31, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the gross margin improvement compared to the same quarter last year, combined with higher gross profit and revenue. However, the sequential decline in gross margin indicates that cost of revenue increased at a faster rate than revenue from the prior quarter.
Relative to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, all three measures—revenue, gross profit, and gross margin—were higher.
Monitor whether cost of revenue continues to grow at a pace that outpaces revenue growth, which could further pressure gross margin.