Veeva Systems Inc. stock research
FY2025 Q2
Veeva Systems (VEEV) Gross Margin — Quarter Ended Jul 31, 2024
Revenue increased, and gross profit grew faster than cost of revenue, leading to an improved gross margin. Compared to the prior quarter and the same quarter last year, gross margin was higher.
Gross margin takeaway
Quarter ended Jul 31, 2024 · FY2025 Q2
Revenue increased, and gross profit grew faster than cost of revenue, leading to an improved gross margin. Compared to the prior quarter and the same quarter last year, gross margin was higher.
- The primary driver of gross margin improvement was revenue growth outpacing the increase in cost of revenue. Cost of revenue remained relatively stable while revenue rose significantly.
- Compared to the prior quarter, gross margin strengthened due to higher revenue and lower cost of revenue. Versus the same quarter last year, gross margin also improved as revenue growth exceeded cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.8%
Gross profit
$505.8M
Revenue
$676.2M
Cost of revenue
$170.4M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+3.4 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 |
|---|---|---|---|---|
| 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% |
| Jul 31, 2024 | $676.2M | $505.8M | $170.4M | 74.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2024
+1.5 pts
Year-over-year change
Jul 31, 2023
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of gross margin improvement was revenue growth outpacing the increase in cost of revenue. Cost of revenue remained relatively stable while revenue rose significantly.
Compared to the prior quarter, gross margin strengthened due to higher revenue and lower cost of revenue. Versus the same quarter last year, gross margin also improved as revenue growth exceeded cost growth.
Monitor cost of revenue trends, as it increased slightly year-over-year but decreased sequentially, which could impact future margin stability.