SPS Commerce (STU:S86) Gross Margin % : 65.58% (As of Mar. 2024)

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What is SPS Commerce Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SPS Commerce's Gross Profit for the three months ended in Mar. 2024 was €90.2 Mil. SPS Commerce's Revenue for the three months ended in Mar. 2024 was €137.6 Mil. Therefore, SPS Commerce's Gross Margin % for the quarter that ended in Mar. 2024 was 65.58%.

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

STU:S86' s Gross Margin % Range Over the Past 10 Years
Min: 65.82 Med: 66.82 Max: 68.74
Current: 66

During the past 13 years, the highest Gross Margin % of SPS Commerce was 68.74%. The lowest was 65.82%. And the median was 66.82%.

STU:S86's Gross Margin % is ranked better than
74.52% of 2633 companies
in the Software industry
Industry Median: 41.79 vs STU:S86: 66.00

SPS Commerce had a gross margin of 65.58% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SPS Commerce was -0.40% per year.

SPS Commerce Gross Margin % Historical Data

The historical data trend for SPS Commerce'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.

SPS Commerce Gross Margin % Chart

SPS Commerce Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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66.95

68.07

65.82

66.05

66.09

SPS Commerce Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															65.87	65.84	66.45	66.17	65.58

Competitive Comparison of SPS Commerce's Gross Margin %

For the Software - Infrastructure subindustry, SPS Commerce'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.

SPS Commerce's Gross Margin % Distribution in the Software Industry

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

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

SPS Commerce Gross Margin % Calculation

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

SPS Commerce's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	325.4	/	492.346
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(492.346 - 166.957)	/	492.346
	=	66.09 %

SPS Commerce's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	90.2	/	137.61
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(137.61 - 47.368)	/	137.61
	=	65.58 %

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.

SPS Commerce (STU:S86) 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

SPS Commerce had a gross margin of 65.58% for the quarter that ended in Mar. 2024 => 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.

SPS Commerce Gross Margin % Related Terms

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

SPS Commerce (STU:S86) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » SPS Commerce Inc (STU:S86) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SPSC:USA S86:Germany

Address

333 South Seventh Street, Suite 1000, Minneapolis, MN, USA, 55402

Website

https://www.spscommerce.com

SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.

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