Bandwidth's gross profit for the
three
months ended in Dec. 2023 was $62.1 Mil. Bandwidth's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $236.2 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Bandwidth's gross profit for the
three
months ended in Dec. 2023 was $62.1 Mil. Bandwidth's Revenue for the
three
months ended in Dec. 2023 was $165.4 Mil. Therefore, Bandwidth's Gross Margin % for the quarter that ended in Dec. 2023 was 37.52%.
Bandwidth had a gross margin of 37.52% for the quarter that ended in Dec. 2023 => Competition eroding margins
During the past 9 years, the highestGross Margin % of Bandwidth was 47.02%. The lowest was 39.29%. And the median was 43.99%.
Warning Sign:
Bandwidth Inc gross margin has been in long-term decline. The average rate of decline per year is -3.6%.
Bandwidth Gross Profit Historical Data
The historical data trend for Bandwidth'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.
Competitive Comparison of Bandwidth's Gross Profit
For the Software - Infrastructure subindustry, Bandwidth'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.
Bandwidth's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, Bandwidth's Gross Profit distribution charts can be found below:
* The bar in red indicates where Bandwidth's Gross Profit falls into.
Bandwidth Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Bandwidth's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $236.2 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
Bandwidth (NAS:BAND) 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
Bandwidth had a gross margin of 37.52% for the quarter that ended in Dec. 2023 => Competition eroding margins
Bandwidth Gross Profit Related Terms
Thank you for viewing the detailed overview of Bandwidth's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to large as well as small and medium-sized business, customers and is generally derived from usage and service fees. Usage revenue includes voice communication (driven by inbound and outbound minutes and toll-free minutes) and messaging communication (driven by the number of messages) that traverse the platform and network. Service fees include the provision and management of phone numbers and emergency services access.
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