Pivotree (TSXV:PVT) Gross Margin % : 46.75% (As of Dec. 2023)

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What is Pivotree Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Pivotree's Gross Profit for the three months ended in Dec. 2023 was C$9.83 Mil. Pivotree's Revenue for the three months ended in Dec. 2023 was C$21.03 Mil. Therefore, Pivotree's Gross Margin % for the quarter that ended in Dec. 2023 was 46.75%.

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

TSXV:PVT' s Gross Margin % Range Over the Past 10 Years
Min: 44.23 Med: 46.19 Max: 56.8
Current: 46.2

During the past 5 years, the highest Gross Margin % of Pivotree was 56.80%. The lowest was 44.23%. And the median was 46.19%.

TSXV:PVT's Gross Margin % is ranked better than
54.74% of 2627 companies
in the Software industry
Industry Median: 41.73 vs TSXV:PVT: 46.20

Pivotree had a gross margin of 46.75% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Pivotree was 0.00% per year.

Pivotree Gross Margin % Historical Data

The historical data trend for Pivotree'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.

Pivotree Gross Margin % Chart

Pivotree Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

56.80

52.60

44.23

44.97

46.19

Pivotree Quarterly Data
	Sep19	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													47.31	46.33	45.48	46.25	46.75

Competitive Comparison of Pivotree's Gross Margin %

For the Information Technology Services subindustry, Pivotree'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.

Pivotree's Gross Margin % Distribution in the Software Industry

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

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

Pivotree Gross Margin % Calculation

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

Pivotree'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 )
	=	41.5	/	89.806
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(89.806 - 48.322)	/	89.806
	=	46.19 %

Pivotree'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 )
	=	9.8	/	21.031
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(21.031 - 11.2)	/	21.031
	=	46.75 %

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.

Pivotree (TSXV:PVT) 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

Pivotree had a gross margin of 46.75% 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.

Pivotree Gross Margin % Related Terms

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Pivotree (TSXV:PVT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Pivotree Inc (TSXV:PVT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PVTRF:USA 8AV:Germany

Address

6300 Northam Drive, Mississauga, ON, CAN, L4V 1H7

Website

https://www.pivotree.com

Pivotree Inc Company designs, integrates, deploys, and manages digital platforms in Commerce, Data Management and Supply Chain for major retail and branded manufacturers throughout the world. Pivotree provides the technical skills necessary to enable the effective use of technologies combined with the business context to leverage a solution to solve clients' business challenges. Pivotree's portfolio of products, managed and professional services help provide B2B2C digital businesses with end-to-end service to manage complex digital commerce platforms. It operates in two segments: professional and managed services. Pivotree serves market-leading brands and forward-thinking B2C and B2B companies, including many Fortune 1000. The majority of its revenue comes from North America.

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