Veeva Systems Inc. stock research
FY2025 Q1
Veeva Systems (VEEV) Gross Margin — Quarter Ended Apr 30, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained unchanged, resulting in a higher gross margin. On a year-over-year basis, revenue and gross profit grew, cost of revenue rose, and gross margin improved.
Gross margin takeaway
Quarter ended Apr 30, 2024 · FY2025 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained unchanged, resulting in a higher gross margin. On a year-over-year basis, revenue and gross profit grew, cost of revenue rose, and gross margin improved.
- The strongest observable margin driver is the relative stability of cost of revenue combined with revenue growth, which allowed gross profit to expand more than proportionally.
- Compared to the preceding quarter, gross margin is higher; relative to the same quarter one year earlier, gross margin is also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.3%
Gross profit
$476.5M
Revenue
$650.3M
Cost of revenue
$173.9M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+4.9 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 |
|---|---|---|---|---|
| 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% |
| Apr 30, 2024 | $650.3M | $476.5M | $173.9M | 73.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2024
+0.8 pts
Year-over-year change
Apr 30, 2023
+4.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative stability of cost of revenue combined with revenue growth, which allowed gross profit to expand more than proportionally.
Compared to the preceding quarter, gross margin is higher; relative to the same quarter one year earlier, gross margin is also higher.
Monitor whether cost of revenue remains stable in future periods as revenue continues to change.