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Guidewire Software Gross Profit

: $407.0 Mil (TTM As of Oct. 2020)
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Guidewire Software's gross profit for the three months ended in Oct. 2020 was $78.8 Mil. Guidewire Software's gross profit for the trailing twelve months (TTM) ended in Oct. 2020 was $407.0 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Guidewire Software's gross profit for the three months ended in Oct. 2020 was $78.8 Mil. Guidewire Software's Revenue for the three months ended in Oct. 2020 was $169.8 Mil. Therefore, Guidewire Software's Gross Margin % for the quarter that ended in Oct. 2020 was 46.43%.

Guidewire Software had a gross margin of 46.43% for the quarter that ended in Oct. 2020 => Durable competitive advantage

During the past 12 years, the highest Gross Margin % of Guidewire Software was 64.23%. The lowest was 53.90%. And the median was 59.29%.

Warning Sign:

Guidewire Software Inc gross margin has been in long term decline. The average rate of decline per year is -3.4%.


Guidewire Software Gross Profit Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Guidewire Software Annual Data
Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 272.61 317.97 356.07 395.16 404.29

Guidewire Software Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 76.15 89.86 82.41 155.86 78.84

Competitive Comparison
* 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.


Guidewire Software Gross Profit Distribution

* The bar in red indicates where Guidewire Software's Gross Profit falls into.



Guidewire Software Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Guidewire Software's Gross Profit for the fiscal year that ended in Jul. 2020 is calculated as

Gross Profit (A: Jul. 2020 )=Revenue - Cost of Goods Sold
=742.307 - 338.015
=404.3

Guidewire Software's Gross Profit for the quarter that ended in Oct. 2020 is calculated as

Gross Profit (Q: Oct. 2020 )=Revenue - Cost of Goods Sold
=169.802 - 90.967
=78.8

Gross Profit for the trailing twelve months (TTM) ended in Oct. 2020 was 89.862 (Jan. 2020 ) + 82.413 (Apr. 2020 ) + 155.863 (Jul. 2020 ) + 78.835 (Oct. 2020 ) = $407.0 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Guidewire Software's Gross Margin % for the quarter that ended in Oct. 2020 is calculated as

Gross Margin % (Q: Oct. 2020 )=Gross Profit (Q: Oct. 2020 ) / Revenue (Q: Oct. 2020 )
=(Revenue - Cost of Goods Sold) / Revenue
=78.8 / 169.802
=46.43 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Guidewire Software  (NYSE:GWRE) 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

Guidewire Software had a gross margin of 46.43% for the quarter that ended in Oct. 2020 => Durable competitive advantage


Guidewire Software Gross Profit Related Terms


Guidewire Software Gross Profit Headlines

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