VeriSign, Inc. stock research
FY2024 Q1
VeriSign (VRSN) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Cost of revenue was slightly higher than the prior quarter but lower than the year-ago quarter, resulting in a gross margin that was slightly below the prior quarter but above the comparable quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Cost of revenue was slightly higher than the prior quarter but lower than the year-ago quarter, resulting in a gross margin that was slightly below the prior quarter but above the comparable quarter last year.
- The year-over-year improvement in gross margin is associated with both higher revenue and lower cost of revenue compared to the same quarter last year.
- Sequentially, revenue and gross profit increased while cost of revenue rose slightly, causing gross margin to weaken marginally. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.2%
Gross profit
$335.2M
Revenue
$384.3M
Cost of revenue
$49.1M
Quarter-over-quarter change
-0.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $384.3M | $335.2M | $49.1M | 87.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.0 pts
Year-over-year change
Mar 31, 2023
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin is associated with both higher revenue and lower cost of revenue compared to the same quarter last year.
Sequentially, revenue and gross profit increased while cost of revenue rose slightly, causing gross margin to weaken marginally. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of cost of revenue, as it increased sequentially while revenue grew, leading to a slight compression in gross margin.