SPS Commerce's gross profit for the
three
months ended in Dec. 2024 was $115.3 Mil. SPS Commerce's gross profit for the trailing twelve months (TTM) ended in Dec. 2024 was $427.1 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. SPS Commerce's gross profit for the
three
months ended in Dec. 2024 was $115.3 Mil. SPS Commerce's Revenue for the
three
months ended in Dec. 2024 was $170.9 Mil. Therefore, SPS Commerce's Gross Margin % for the quarter that ended in Dec. 2024 was 67.48%.
SPS Commerce had a gross margin of 67.48% for the quarter that ended in Dec. 2024 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of SPS Commerce was 68.43%. The lowest was 65.82%. And the median was 66.82%.
SPS Commerce Gross Profit Historical Data
The historical data trend for SPS Commerce's Gross Profit 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.
Competitive Comparison of SPS Commerce's Gross Profit
For the Software - Application subindustry, SPS Commerce's Gross Profit, along with its competitors' market caps and Gross Profit 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.
SPS Commerce's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, SPS Commerce's Gross Profit distribution charts can be found below:
* The bar in red indicates where SPS Commerce's Gross Profit falls into.
SPS Commerce Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
SPS Commerce's Gross Profit for the fiscal year that ended in Dec. 2024 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $427.1 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
SPS Commerce (NAS:SPSC) 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
SPS Commerce had a gross margin of 67.48% for the quarter that ended in Dec. 2024 => Durable competitive advantage
SPS Commerce Gross Profit Related Terms
Thank you for viewing the detailed overview of SPS Commerce's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from subscription-based recurring revenue services.
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