Nextdc (ASX:NXT) Gross Margin % : 70.97% (As of Dec. 2023)

View and export this data going back to 2010. Start your Free Trial

What is Nextdc Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nextdc's Gross Profit for the six months ended in Dec. 2023 was A$146.7 Mil. Nextdc's Revenue for the six months ended in Dec. 2023 was A$206.7 Mil. Therefore, Nextdc's Gross Margin % for the quarter that ended in Dec. 2023 was 70.97%.

The historical rank and industry rank for Nextdc's Gross Margin % or its related term are showing as below:

ASX:NXT' s Gross Margin % Range Over the Past 10 Years
Min: 31.29 Med: 78.77 Max: 85.05
Current: 70.28

During the past 13 years, the highest Gross Margin % of Nextdc was 85.05%. The lowest was 31.29%. And the median was 78.77%.

ASX:NXT's Gross Margin % is ranked better than
78.59% of 2639 companies
in the Software industry
Industry Median: 41.94 vs ASX:NXT: 70.28

Nextdc had a gross margin of 70.97% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nextdc was 2.90% per year.

Nextdc Gross Margin % Historical Data

The historical data trend for Nextdc's Gross Margin % 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.

Nextdc Gross Margin % Chart

Nextdc Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

Get a 7-Day Free Trial

80.44

81.05

82.55

85.05

77.10

Nextdc Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															84.29	85.80	86.65	69.57	70.97

Competitive Comparison of Nextdc's Gross Margin %

For the Information Technology Services subindustry, Nextdc's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.

Nextdc's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Nextdc's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Nextdc's Gross Margin % falls into.

Nextdc Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Nextdc's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	279.4	/	362.369
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(362.369 - 82.998)	/	362.369
	=	77.10 %

Nextdc's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	146.7	/	206.716
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(206.716 - 60.019)	/	206.716
	=	70.97 %

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.

Nextdc (ASX:NXT) Gross Margin % 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

Nextdc had a gross margin of 70.97% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Nextdc Gross Margin % Related Terms

Thank you for viewing the detailed overview of Nextdc's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Nextdc (ASX:NXT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Nextdc Ltd (ASX:NXT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

NXDCF:USA 2NX:Germany

Address

20 Wharf Street, Brisbane, QLD, AUS, 4000

Website

https://www.nextdc.com

NextDC operates 13 data centers across five major Australian cities with a focus on colocation of and interconnection between enterprises, global cloud, and ICT providers and telecommunication networks. It has another 7 data centers in development or planning stage. NextDC provides physical space, cooling, power and security services and offers optional technical and project management support. The company's tenants store their servers within the data center and can connect to each other, to and between global public cloud providers and telecommunication network providers via physical and virtual connections. Colocation services allow enterprises to enhance security of data transmission and reduce latency, that is, speed up the transfer of data. NextDC services tenants of all sizes.