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athenahealth (athenahealth) Gross Profit : $705 Mil (TTM As of Sep. 2018)


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What is athenahealth Gross Profit?

athenahealth's gross profit for the three months ended in Sep. 2018 was $175 Mil. athenahealth's gross profit for the trailing twelve months (TTM) ended in Sep. 2018 was $705 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. athenahealth's gross profit for the three months ended in Sep. 2018 was $175 Mil. athenahealth's Revenue for the three months ended in Sep. 2018 was $330 Mil. Therefore, athenahealth's Gross Margin % for the quarter that ended in Sep. 2018 was 53.14%.

athenahealth had a gross margin of 53.14% for the quarter that ended in Sep. 2018 => Durable competitive advantage


athenahealth Gross Profit Historical Data

The historical data trend for athenahealth's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

athenahealth Gross Profit Chart

athenahealth Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 595.00 383.90 462.50 549.40 641.80

athenahealth Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 160.60 182.90 175.40 171.30 175.10

Competitive Comparison of athenahealth's Gross Profit

For the Health Information Services subindustry, athenahealth's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


athenahealth's Gross Profit Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, athenahealth's Gross Profit distribution charts can be found below:

* The bar in red indicates where athenahealth's Gross Profit falls into.



athenahealth Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

athenahealth's Gross Profit for the fiscal year that ended in Dec. 2017 is calculated as

Gross Profit (A: Dec. 2017 )=Revenue - Cost of Goods Sold
=1220.3 - 578.5
=642

athenahealth's Gross Profit for the quarter that ended in Sep. 2018 is calculated as

Gross Profit (Q: Sep. 2018 )=Revenue - Cost of Goods Sold
=329.5 - 154.4
=175

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2018 adds up the quarterly data reported by the company within the most recent 12 months, which was $705 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

athenahealth's Gross Margin % for the quarter that ended in Sep. 2018 is calculated as

Gross Margin % (Q: Sep. 2018 )=Gross Profit (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=(Revenue - Cost of Goods Sold) / Revenue
=175 / 329.5
=53.14 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


athenahealth  (NAS:ATHN) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

athenahealth had a gross margin of 53.14% for the quarter that ended in Sep. 2018 => Durable competitive advantage


athenahealth Gross Profit Related Terms

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athenahealth (athenahealth) Business Description

Traded in Other Exchanges
N/A
Address
Athenahealth provides healthcare IT (HCIT) services through cloud-based and mobile application products largely for smaller to midsize medical groups and health systems. Their services include revenue cycle and practice management, electronic health records, patient engagement, population health management, and care coordination. The business services segment generates 96% of revenue, which provides cloud-based solutions and support to healthcare providers. Athenahealth is headquartered in Waltham, Massachusetts.
Executives
Brian P Mckeon director IDEXX LABORATORIES, ONE IDEXX DRIVE, WESTBROOK ME 04092
John A Kane director C/O MERCHANTS BANCSHARES, INC., 275 KENNEDY DRIVE, SOUTH BURLINGTON VT 05403
Dev Ittycheria director C/O MONGO DB, INC., 1633 BROADWAY, 38TH FLOOR, NEW YORK NY 10019
Ed Park director 311 ARSENAL STREET WATERTOWN MA 02472
Brandon H Hull director 221 NASSAU STREET, PRINCETON NJ 08542
Thomas J Szkutak director P O BOX 81226, SEATTLE WA 98108-1226
Jeffrey R Immelt director, other: Executive Chairman GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
Marc A Levine officer: Chief Financial Officer C/O ATHENAHEALTH, INC., 311 ARSENAL STREET, WATERTOWN MA 02472
Jacqueline B Kosecoff director 5960 HEISLEY ROAD, MENTOR OH 44060
Amy Abernethy director 311 ARSENAL STREET, WATERTOWN MA 02472
Kristi Ann Matus officer: EVP and CFAO C/O EQUITABLE HOLDINGS, INC., 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Daniel H. Orenstein officer: SVP, GC, and Secretary 311 ARSENAL STREET, WATERTOWN MA 02472
Jeremy Delinsky officer: SVP, Chief Product Officer C/O WAYFAIR INC., 4 COPLEY PLACE, 7TH FLOOR, BOSTON MA 02116
Timothy M Adams officer: CFO & SVP 311 ARSENAL STREET, WATERTOWN MA 02472
Bryan E Roberts director C/O VENROCK ASSOCIATES, 2494 SAND HILL ROAD STE 200, MENLO PARK CA 94025

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