Verisk Analytics, Inc. stock research
FY2024 Q4
Verisk Analytics (VRSK) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was higher than the prior quarter but lower than the year-ago quarter. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was higher than the prior quarter but lower than the year-ago quarter. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue changes. Revenue grew more than cost of revenue compared to the year-ago quarter, supporting margin improvement.
- Compared to the prior quarter, gross margin was slightly lower as cost of revenue increased at a faster pace than revenue. Compared to the same quarter last year, gross margin was higher, driven by revenue growth outpacing cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.7%
Gross profit
$505.1M
Revenue
$735.6M
Cost of revenue
$230.5M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+2.1 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, 2024 | $704.0M | $476.2M | $227.8M | 67.6% |
| Jun 30, 2024 | $716.8M | $497.4M | $219.4M | 69.4% |
| Sep 30, 2024 | $725.3M | $501.9M | $223.4M | 69.2% |
| Dec 31, 2024 | $735.6M | $505.1M | $230.5M | 68.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.5 pts
Year-over-year change
Dec 31, 2023
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue changes. Revenue grew more than cost of revenue compared to the year-ago quarter, supporting margin improvement.
Compared to the prior quarter, gross margin was slightly lower as cost of revenue increased at a faster pace than revenue. Compared to the same quarter last year, gross margin was higher, driven by revenue growth outpacing cost of revenue growth.
Monitor the trend in cost of revenue relative to revenue, as a faster increase in cost of revenue could pressure gross margin.