Verisk Analytics, Inc. stock research
FY2023 Q4
Verisk Analytics (VRSK) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was nearly flat versus the prior quarter, while cost of revenue increased, causing gross profit to decline and gross margin to weaken. Compared with the same quarter last year, revenue and gross profit were higher, but cost of revenue rose at a faster pace, resulting in a slightly lower gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was nearly flat versus the prior quarter, while cost of revenue increased, causing gross profit to decline and gross margin to weaken. Compared with the same quarter last year, revenue and gross profit were higher, but cost of revenue rose at a faster pace, resulting in a slightly lower gross margin.
- The most observable driver was the increase in cost of revenue relative to the prior quarter, which directly reduced gross profit and margin despite stable revenue. This shift in the revenue-to-cost relationship is the clearest margin influence.
- Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue improved year-over-year but was essentially unchanged from the prior quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.6%
Gross profit
$451.0M
Revenue
$677.2M
Cost of revenue
$226.2M
Quarter-over-quarter change
-1.3 pts
Year-over-year change
-0.9 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $651.6M | $435.4M | $216.2M | 66.8% |
| Jun 30, 2023 | $675.0M | $458.1M | $216.9M | 67.9% |
| Sep 30, 2023 | $677.6M | $460.4M | $217.2M | 67.9% |
| Dec 31, 2023 | $677.2M | $451.0M | $226.2M | 66.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.3 pts
Year-over-year change
Dec 31, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver was the increase in cost of revenue relative to the prior quarter, which directly reduced gross profit and margin despite stable revenue. This shift in the revenue-to-cost relationship is the clearest margin influence.
Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue improved year-over-year but was essentially unchanged from the prior quarter.
Monitor the trajectory of cost of revenue, as its increase relative to revenue drove the margin weakening this quarter.