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Paysafe (Paysafe) Gross Margin % : 58.13% (As of Dec. 2023)


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What is Paysafe Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Paysafe's Gross Profit for the three months ended in Dec. 2023 was $241 Mil. Paysafe's Revenue for the three months ended in Dec. 2023 was $415 Mil. Therefore, Paysafe's Gross Margin % for the quarter that ended in Dec. 2023 was 58.13%.

Warning Sign:

Paysafe Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


The historical rank and industry rank for Paysafe's Gross Margin % or its related term are showing as below:

PSFE' s Gross Margin % Range Over the Past 10 Years
Min: 58.58   Med: 61.09   Max: 65.75
Current: 58.58


During the past 6 years, the highest Gross Margin % of Paysafe was 65.75%. The lowest was 58.58%. And the median was 61.09%.

PSFE's Gross Margin % is ranked better than
66.84% of 2627 companies
in the Software industry
Industry Median: 41.73 vs PSFE: 58.58

Paysafe had a gross margin of 58.13% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Paysafe was -2.50% per year.


Paysafe Gross Margin % Historical Data

The historical data trend for Paysafe'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.

* Premium members only.

Paysafe Gross Margin % Chart

Paysafe Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 64.13 62.51 59.67 58.96 58.58

Paysafe Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial 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 59.30 59.02 58.59 58.61 58.13

Competitive Comparison of Paysafe's Gross Margin %

For the Software - Infrastructure subindustry, Paysafe'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.


Paysafe's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Paysafe's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Paysafe's Gross Margin % falls into.



Paysafe Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Paysafe's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=937.9 / 1601.138
=(Revenue - Cost of Goods Sold) / Revenue
=(1601.138 - 663.212) / 1601.138
=58.58 %

Paysafe's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=241 / 414.541
=(Revenue - Cost of Goods Sold) / Revenue
=(414.541 - 173.582) / 414.541
=58.13 %

* 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.


Paysafe  (NYSE:PSFE) 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

Paysafe had a gross margin of 58.13% 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.


Paysafe Gross Margin % Related Terms

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Paysafe (Paysafe) Business Description

Traded in Other Exchanges
Address
25 Canada Square, 27th Floor, London, GBR, E14 5LQ
Paysafe Ltd is an integrated payments platform. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through capabilities in payment processing, digital wallet, and online cash solutions. The company provides payment solutions through three primary lines of business: Integrated Processing, Digital Wallet, and eCash Solutions. It derives a majority of revenue from the USA followed by Germany, the UK, and all other countries.

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