Demandware's gross profit for the
three
months ended in Mar. 2016 was $46.5 Mil. Demandware's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was $181.1 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Demandware's gross profit for the
three
months ended in Mar. 2016 was $46.5 Mil. Demandware's Revenue for the
three
months ended in Mar. 2016 was $67.1 Mil. Therefore, Demandware's Gross Margin % for the quarter that ended in Mar. 2016 was 69.35%.
Demandware had a gross margin of 69.35% for the quarter that ended in Mar. 2016 => Durable competitive advantage
Demandware Gross Profit Historical Data
The historical data trend for Demandware'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 Demandware's Gross Profit
For the Software - Application subindustry, Demandware'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.
Demandware's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, Demandware's Gross Profit distribution charts can be found below:
* The bar in red indicates where Demandware's Gross Profit falls into.
Demandware Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Demandware's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $181.1 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.
Demandware (NYSE:DWRE) 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
Demandware had a gross margin of 69.35% for the quarter that ended in Mar. 2016 => Durable competitive advantage
Demandware Gross Profit Related Terms
Thank you for viewing the detailed overview of Demandware's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Demandware Inc was incorporated in Delaware in February 2004 as SSE Holding, Inc. and changed its name to Demandware, Inc. in August 2004. The Company provides enterprise-class cloud-based digital commerce solutions for retailers and branded manufacturers. Its platform, Demandware Commerce, enables customers to establish and execute complex digital commerce strategies that include expansion, multi-brand rollouts and omni-channel operations. It enable companies to easily design, implement and manage their own customized digital commerce sites, including websites, mobile applications, in-store solutions and other digital storefronts. Through its scalable, secure, and open Demandware Commerce platform, its customers create seamless brand experiences to reach their consumers across all digital touch points globally. The Company's cloud infrastructure increases processing capacity of its customers' digital commerce sites to meet surges in demand, minimize page load times and maximize uptime. Its cloud platform also offers the high reliability and security required by customers to implement their digital commerce strategies, and the Company has achieved 99.99% average platform availability since 2005. The Company has built an ecosystem of trusted partners called Demandware LINK that complements and optimizes Demandware Commerce. Demandware LINK is comprised of technology, solution and end-to end partners. Its geographical areas of operations include, United States, Germany and United Kingdom. The Company's customers include adidas, Barneys New York, Bestseller, Brooks Brothers, Carter's, Deckers, Guthy-Renker, House of Fraser, Jewelry Television, Kate Spade, Lands' End, L'Oreal, mothercare, s.Oliver, and Tory Burch. The Company competes with IBM, Oracle/ATG, eBay/Magento, Digital River, eBay/GSI Commerce, MarketLive and Venda. Its solutions are subject to export controls, including the Commerce Department's Export Administration Regulations and various economic and trade sanctions regulations established by the Treasury Department's Office of Foreign Assets Controls, and exports of its solutions must be made in compliance with these laws.
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