Gross Margin % is calculated as gross profit divided by its revenue. BM Technologies's Gross Profit for the
three
months ended in Dec. 2023 was $7.80 Mil. BM Technologies's Revenue for the
three
months ended in Dec. 2023 was $14.04 Mil. Therefore, BM Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 55.55%.
The historical rank and industry rank for BM Technologies's Gross Margin % or its related term are showing as below:
BMTX'
s Gross Margin % Range Over the Past 10 Years
Min: 48.08 Med: 58.96 Max: 67.11
Current: 48.65
During the past 5 years, the highestGross Margin % of BM Technologies was 67.11%. The lowest was 48.08%. And the median was 58.96%.
BMTX's Gross Margin % is ranked better than 58.07% of 2628
companies
in the Software industry
Industry Median: 41.71
vs BMTX: 48.65
BM Technologies had a gross margin of 55.55% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BM Technologies was 0.00% per year.
BM Technologies Gross Margin % Historical Data
The historical data trend for BM Technologies'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.
Competitive Comparison of BM Technologies's Gross Margin %
For the Software - Application subindustry, BM Technologies'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.
BM Technologies's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, BM Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BM Technologies'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.
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
BM Technologies had a gross margin of 55.55% 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.
BM Technologies Gross Margin % Related Terms
Thank you for viewing the detailed overview of BM Technologies's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
BM Technologies (BM Technologies) Business Description
BM Technologies Inc provides digital banking and disbursement services to consumers and students nationwide through a full service fintech banking platform, accessible to customers anywhere and anytime through digital channels. It facilitates deposits and banking services between a customer and its Partner Bank, Customers Bank, which is a related party and is a Federal Deposit Insurance Corporation (FDIC) insured bank. Tje company has four primary revenue sources: interchange and card revenue, servicing fees, account fees, and university fees. The majority of revenues are driven by customer activity (deposits, spend, transactions, etc.) and may be paid or passed through by Customers Bank, universities, or paid directly by customers.
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