Verisk Analytics, Inc. stock research
FY2023 Q2
Verisk Analytics (VRSK) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose slightly from the prior quarter and more notably from a year ago. Gross margin improved sequentially but weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose slightly from the prior quarter and more notably from a year ago. Gross margin improved sequentially but weakened relative to the same quarter last year.
- The sequential improvement in gross margin was driven by revenue growth outpacing the increase in cost of revenue. The year-over-year decline in gross margin reflects a larger proportional rise in cost of revenue relative to revenue growth.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.9%
Gross profit
$458.1M
Revenue
$675.0M
Cost of revenue
$216.9M
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-0.2 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% |
| Jun 30, 2023 | $675.0M | $458.1M | $216.9M | 67.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.0 pts
Year-over-year change
Jun 30, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by revenue growth outpacing the increase in cost of revenue. The year-over-year decline in gross margin reflects a larger proportional rise in cost of revenue relative to revenue growth.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its faster year-over-year growth has compressed gross margin.