VeriSign, Inc. stock research
FY2023 Q4
VeriSign (VRSN) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased, while cost of revenue declined year-over-year and was slightly lower than the prior quarter, resulting in an improved gross margin. The gross margin strengthened compared with both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased, while cost of revenue declined year-over-year and was slightly lower than the prior quarter, resulting in an improved gross margin. The gross margin strengthened compared with both the immediately preceding quarter and the same quarter one year earlier.
- The strongest observable driver was the combination of higher revenue and a lower cost of revenue relative to the year-ago quarter, which expanded gross margin. Sequential improvement was supported by slightly higher revenue with nearly flat cost of revenue.
- Gross margin improved sequentially from the prior quarter and year-over-year from the same quarter one year ago. Revenue increased in both comparisons while cost of revenue decreased year-over-year and remained essentially stable sequentially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.3%
Gross profit
$331.9M
Revenue
$380.4M
Cost of revenue
$48.5M
Quarter-over-quarter change
+0.2 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 | $364.4M | $314.5M | $49.9M | 86.3% |
| Jun 30, 2023 | $372.0M | $321.7M | $50.3M | 86.5% |
| Sep 30, 2023 | $376.3M | $327.7M | $48.6M | 87.1% |
| Dec 31, 2023 | $380.4M | $331.9M | $48.5M | 87.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.2 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 strongest observable driver was the combination of higher revenue and a lower cost of revenue relative to the year-ago quarter, which expanded gross margin. Sequential improvement was supported by slightly higher revenue with nearly flat cost of revenue.
Gross margin improved sequentially from the prior quarter and year-over-year from the same quarter one year ago. Revenue increased in both comparisons while cost of revenue decreased year-over-year and remained essentially stable sequentially.
Monitor the trajectory of cost of revenue, as its absolute level remains a small but critical component of gross margin performance.