VR

VeriSign, Inc. stock research

Sep 30, 2024

FY2024 Q3

VeriSign (VRSN) Gross Margin — Quarter Ended Sep 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue decreased relative to both periods, resulting in an improved gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue decreased relative to both periods, resulting in an improved gross margin.

  • The most notable driver was the decline in cost of revenue, which fell while revenue rose, directly supporting gross margin expansion.
  • Gross margin improved sequentially and year-over-year, reflecting higher revenue and lower cost of revenue in both comparisons.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

88.0%

Gross profit

$343.8M

Revenue

$390.6M

Cost of revenue

$46.8M

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.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$380.4M$331.9M$48.5M87.3%
Mar 31, 2024$384.3M$335.2M$49.1M87.2%
Jun 30, 2024$387.1M$340.0M$47.1M87.8%
Sep 30, 2024$390.6M$343.8M$46.8M88.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

+0.2 pts

Year-over-year change

Sep 30, 2023

+0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most notable driver was the decline in cost of revenue, which fell while revenue rose, directly supporting gross margin expansion.

Gross margin improved sequentially and year-over-year, reflecting higher revenue and lower cost of revenue in both comparisons.

Monitor the trajectory of cost of revenue, as its recent declines have been a key factor in margin improvement.