VeriSign Inc (VRSN)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,366,000 | 1,350,900 | 1,334,800 | 1,316,500 | 1,295,800 | 1,282,600 | 1,261,800 | 1,242,500 | 1,224,200 | 1,196,500 | 1,176,100 | 1,155,300 | 1,135,700 | 1,119,037 | 1,105,392 | 1,094,549 | 1,084,900 | 1,074,652 | 1,065,775 | 1,057,241 |
| Revenue (ttm) | US$ in thousands | 1,557,400 | 1,542,400 | 1,528,100 | 1,513,000 | 1,493,100 | 1,481,900 | 1,462,500 | 1,442,400 | 1,424,900 | 1,396,000 | 1,373,400 | 1,350,900 | 1,327,600 | 1,307,632 | 1,291,211 | 1,276,176 | 1,265,100 | 1,255,311 | 1,245,853 | 1,237,777 |
| Gross profit margin | 87.71% | 87.58% | 87.35% | 87.01% | 86.79% | 86.55% | 86.28% | 86.14% | 85.91% | 85.71% | 85.63% | 85.52% | 85.55% | 85.58% | 85.61% | 85.77% | 85.76% | 85.61% | 85.55% | 85.41% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,366,000K ÷ $1,557,400K
= 87.71%
VeriSign Inc has shown a consistent and generally upward trend in its gross profit margin over the period from March 31, 2020, to December 31, 2024. The gross profit margin started at 85.41% in March 2020 and reached its peak at 87.71% by the end of December 2024. This indicates that the company has been effectively managing its cost of goods sold relative to its revenue, resulting in an increasing percentage of revenue retained as gross profit.
However, there were some fluctuations observed in the gross profit margin during this period, with slight declines in some quarters followed by subsequent increases. For example, there was a dip in the gross profit margin from the second quarter of 2023 to the third quarter of 2023 before it resumed its upward trajectory.
Overall, the consistent improvement in VeriSign's gross profit margin over the analyzed period reflects the company's ability to control production costs, enhance operational efficiency, and potentially command higher pricing power in its market. This sustained improvement in gross profit margin is a positive indicator of the company's financial health and operational performance.
Peer comparison
Dec 31, 2024