Veeva Systems Inc. stock research
FY2025 Q3
Veeva Systems (VEEV) Gross Margin — Quarter Ended Oct 31, 2024
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter a year ago. Gross margin improved slightly from the preceding quarter and was higher than the year-earlier period.
Gross margin takeaway
Quarter ended Oct 31, 2024 · FY2025 Q3
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter a year ago. Gross margin improved slightly from the preceding quarter and was higher than the year-earlier period.
- The gross margin in the current quarter is higher than both comparison periods, with the largest sequential increase coming from a combination of higher revenue growth relative to the rise in cost of revenue.
- Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue all increased, with gross margin strengthening slightly. Compared with the same quarter a year earlier, all three metrics were also higher, and gross margin showed a more notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.1%
Gross profit
$524.8M
Revenue
$699.2M
Cost of revenue
$174.4M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+2.3 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, 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% |
| Oct 31, 2024 | $699.2M | $524.8M | $174.4M | 75.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2024
+0.3 pts
Year-over-year change
Oct 31, 2023
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin in the current quarter is higher than both comparison periods, with the largest sequential increase coming from a combination of higher revenue growth relative to the rise in cost of revenue.
Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue all increased, with gross margin strengthening slightly. Compared with the same quarter a year earlier, all three metrics were also higher, and gross margin showed a more notable improvement.
Monitor whether the sequential growth rate of cost of revenue continues to lag revenue growth in future quarters.