Verisk Analytics, Inc. stock research
FY2023 Q1
Verisk Analytics (VRSK) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slightly faster pace, causing gross margin to weaken. Compared to the same quarter a year earlier, revenue was higher and cost of revenue was lower, leading to a significantly improved gross profit and a strengthened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slightly faster pace, causing gross margin to weaken. Compared to the same quarter a year earlier, revenue was higher and cost of revenue was lower, leading to a significantly improved gross profit and a strengthened gross margin.
- Gross margin strengthened relative to the year-ago quarter, driven by a combination of higher revenue and lower cost of revenue. The sequential weakening from the prior quarter reflects the fact that cost of revenue grew faster than revenue in that comparison.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower as cost of revenue increased at a faster rate. Compared to the same quarter one year earlier, both revenue and gross profit were higher, and gross margin was stronger due to a decline in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.8%
Gross profit
$435.4M
Revenue
$651.6M
Cost of revenue
$216.2M
Quarter-over-quarter change
n/a
Year-over-year change
+2.4 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $651.6M | $435.4M | $216.2M | 66.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened relative to the year-ago quarter, driven by a combination of higher revenue and lower cost of revenue. The sequential weakening from the prior quarter reflects the fact that cost of revenue grew faster than revenue in that comparison.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower as cost of revenue increased at a faster rate. Compared to the same quarter one year earlier, both revenue and gross profit were higher, and gross margin was stronger due to a decline in cost of revenue.
Monitor whether the cost of revenue trend continues to grow faster than revenue, as it could further pressure gross margin.