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Vtex (VTEX) Gross Margin % : 74.50% (As of Sep. 2024)


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What is Vtex Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vtex's Gross Profit for the three months ended in Sep. 2024 was $41.7 Mil. Vtex's Revenue for the three months ended in Sep. 2024 was $56.0 Mil. Therefore, Vtex's Gross Margin % for the quarter that ended in Sep. 2024 was 74.50%.


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

VTEX' s Gross Margin % Range Over the Past 10 Years
Min: 60.57   Med: 66.48   Max: 73.52
Current: 73.52


During the past 6 years, the highest Gross Margin % of Vtex was 73.52%. The lowest was 60.57%. And the median was 66.48%.

VTEX's Gross Margin % is ranked better than
82.66% of 2618 companies
in the Software industry
Industry Median: 41.435 vs VTEX: 73.52

Vtex had a gross margin of 74.50% for the quarter that ended in Sep. 2024 => Durable competitive advantage

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


Vtex Gross Margin % Historical Data

The historical data trend for Vtex'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.

Vtex Gross Margin % Chart

Vtex Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 66.99 64.68 60.57 66.48 69.75

Vtex Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 Premium Member Only Premium Member Only 70.33 73.89 71.96 73.61 74.50

Competitive Comparison of Vtex's Gross Margin %

For the Software - Application subindustry, Vtex'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.


Vtex's Gross Margin % Distribution in the Software Industry

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

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



Vtex Gross Margin % Calculation

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

Vtex'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 )
=140.6 / 201.517
=(Revenue - Cost of Goods Sold) / Revenue
=(201.517 - 60.949) / 201.517
=69.75 %

Vtex's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=41.7 / 55.996
=(Revenue - Cost of Goods Sold) / Revenue
=(55.996 - 14.278) / 55.996
=74.50 %

* 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.


Vtex  (NYSE:VTEX) 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

Vtex had a gross margin of 74.50% 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.


Vtex Gross Margin % Related Terms

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Vtex Business Description

Traded in Other Exchanges
N/A
Address
125 Kingsway, Aviation House, London, GBR, WC2B 6NH
Vtex provides a software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce plan, including building online stores, integrating and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It generates maximum revenues from Brazil followed by Latin America and the rest of the world.