Gross Margin % is calculated as gross profit divided by its revenue. JFrog's Gross Profit for the
three
months ended in Sep. 2024 was $81.8 Mil. JFrog's Revenue for the
three
months ended in Sep. 2024 was $109.1 Mil. Therefore, JFrog's Gross Margin % for the quarter that ended in Sep. 2024 was 74.98%.
Warning Sign:
JFrog Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for JFrog's Gross Margin % or its related term are showing as below:
FROG'
s Gross Margin % Range Over the Past 10 Years
Min: 77.76 Med: 80.32 Max: 83.14
Current: 77.98
During the past 6 years, the highestGross Margin % of JFrog was 83.14%. The lowest was 77.76%. And the median was 80.32%.
FROG's Gross Margin % is ranked better than 86.63% of 2618
companies
in the Software industry
Industry Median: 41.435
vs FROG: 77.98
JFrog had a gross margin of 74.98% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for JFrog was -1.30% per year.
JFrog Gross Margin % Historical Data
The historical data trend for JFrog'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 Software - Application subindustry, JFrog'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.
JFrog's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, JFrog's Gross Margin % distribution charts can be found below:
* The bar in red indicates where JFrog'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.
JFrog (NAS:FROG) 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
JFrog had a gross margin of 74.98% for the quarter that ended in Sep. 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.
JFrog Gross Margin % Related Terms
Thank you for viewing the detailed overview of JFrog's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
JFrog Ltd provides an end-to-end, hybrid, universal DevOps Platform that powers and controls the software supply chain, enabling organizations to continuously and securely deliver software updates across any system. Its product portfolio includes JFrog Artifactory; JFrog Pipelines; JFrog Xray; JFrog Distribution; JFrog Artifactory Edge; JFrog Mission Control and JFrog Insight. Geographically, it derives a majority of revenue from Israel and also has its presence in United States, India and other regions.
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