Verisk Analytics, Inc. stock research
FY2024 Q2
Verisk Analytics (VRSK) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue decreased sequentially but rose year over year. Gross margin improved relative to both periods, reflecting a favorable shift in the relationship between cost of revenue and revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue decreased sequentially but rose year over year. Gross margin improved relative to both periods, reflecting a favorable shift in the relationship between cost of revenue and revenue.
- The strongest observable driver is the reduction in cost of revenue relative to revenue, as cost of revenue declined sequentially while revenue grew, leading to a higher gross margin.
- Gross margin in the current quarter was higher than both the immediately preceding quarter and the same quarter one year earlier, driven by a larger increase in gross profit relative to revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.4%
Gross profit
$497.4M
Revenue
$716.8M
Cost of revenue
$219.4M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $677.6M | $460.4M | $217.2M | 67.9% |
| Dec 31, 2023 | $677.2M | $451.0M | $226.2M | 66.6% |
| Mar 31, 2024 | $704.0M | $476.2M | $227.8M | 67.6% |
| Jun 30, 2024 | $716.8M | $497.4M | $219.4M | 69.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.7 pts
Year-over-year change
Jun 30, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the reduction in cost of revenue relative to revenue, as cost of revenue declined sequentially while revenue grew, leading to a higher gross margin.
Gross margin in the current quarter was higher than both the immediately preceding quarter and the same quarter one year earlier, driven by a larger increase in gross profit relative to revenue growth.
Monitor the automatic renewal of subscriptions at the beginning of the calendar year, as described in the filing, which may influence future revenue and margin stability.