Gross Margin % is calculated as gross profit divided by its revenue. Yelp's Gross Profit for the
three
months ended in Dec. 2023 was $313 Mil. Yelp's Revenue for the
three
months ended in Dec. 2023 was $342 Mil. Therefore, Yelp's Gross Margin % for the quarter that ended in Dec. 2023 was 91.35%.
The historical rank and industry rank for Yelp's Gross Margin % or its related term are showing as below:
YELP'
s Gross Margin % Range Over the Past 10 Years
Min: 90.72 Med: 92.07 Max: 93.86
Current: 91.46
During the past 13 years, the highestGross Margin % of Yelp was 93.86%. The lowest was 90.72%. And the median was 92.07%.
YELP's Gross Margin % is ranked better than 78.74% of 522
companies
in the Interactive Media industry
Industry Median: 60.98
vs YELP: 91.46
Yelp had a gross margin of 91.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Yelp was -0.70% per year.
Yelp Gross Margin % Historical Data
The historical data trend for Yelp'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.
For the Internet Content & Information subindustry, Yelp'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.
Yelp's Gross Margin % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Yelp's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yelp's Gross Margin % falls into.
* 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.
Yelp (NYSE:YELP) 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
Yelp had a gross margin of 91.35% 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.
Yelp Gross Margin % Related Terms
Thank you for viewing the detailed overview of Yelp's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Yelp Inc operates in the online content market based in the United States. It provides a web-based platform and mobile application to bridge the gap between businesses and consumers. The platform assists consumers through product reviews, tips, photos and videos thereby enabling them in making better buying decisions and posting their feedbacks. Its products and services includes Advertising Products and Business Page Products. In addition, it also lets the buyers directly transact with businesses directly through its platform. Yelp generates revenue mainly from the sale of advertising on its website and mobile app to businesses. The company generates majority of the revenue from United States.
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