VeriSign, Inc. stock research
FY2024 Q2
VeriSign (VRSN) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit increased while cost of revenue declined, leading to a higher gross margin. Compared with both the prior quarter and the same quarter one year earlier, revenue and gross profit rose, cost of revenue fell, and gross margin improved.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit increased while cost of revenue declined, leading to a higher gross margin. Compared with both the prior quarter and the same quarter one year earlier, revenue and gross profit rose, cost of revenue fell, and gross margin improved.
- The gross margin improvement was driven by a combination of higher revenue and a lower cost of revenue, with the cost reduction being the more prominent factor relative to revenue growth.
- Compared with the immediately preceding quarter, revenue and gross profit were higher while cost of revenue was lower, resulting in an improved gross margin. The same trends held when compared with the same quarter a year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.8%
Gross profit
$340.0M
Revenue
$387.1M
Cost of revenue
$47.1M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+1.4 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 | $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% |
| Jun 30, 2024 | $387.1M | $340.0M | $47.1M | 87.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.6 pts
Year-over-year change
Jun 30, 2023
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a combination of higher revenue and a lower cost of revenue, with the cost reduction being the more prominent factor relative to revenue growth.
Compared with the immediately preceding quarter, revenue and gross profit were higher while cost of revenue was lower, resulting in an improved gross margin. The same trends held when compared with the same quarter a year earlier.
Monitor the trajectory of cost of revenue, as its recent decline was a key contributor to the gross margin expansion.