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Hortonworks (Hortonworks) Gross Margin % : 72.71% (As of Sep. 2018)


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What is Hortonworks Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hortonworks's Gross Profit for the three months ended in Sep. 2018 was $63.4 Mil. Hortonworks's Revenue for the three months ended in Sep. 2018 was $87.2 Mil. Therefore, Hortonworks's Gross Margin % for the quarter that ended in Sep. 2018 was 72.71%.


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


HDP's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.74
* Ranked among companies with meaningful Gross Margin % only.

Hortonworks had a gross margin of 72.71% for the quarter that ended in Sep. 2018 => Durable competitive advantage

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


Hortonworks Gross Margin % Historical Data

The historical data trend for Hortonworks'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.

Hortonworks Gross Margin % Chart

Hortonworks Annual Data
Trend Apr12 Apr13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial 0.59 -75.64 54.76 60.88 69.03

Hortonworks Quarterly Data
Apr12 Apr13 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 69.07 71.43 71.84 72.30 72.71

Competitive Comparison of Hortonworks's Gross Margin %

For the Software - Infrastructure subindustry, Hortonworks'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.


Hortonworks's Gross Margin % Distribution in the Software Industry

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

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



Hortonworks Gross Margin % Calculation

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

Hortonworks's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=180.7 / 261.81
=(Revenue - Cost of Goods Sold) / Revenue
=(261.81 - 81.095) / 261.81
=69.03 %

Hortonworks's Gross Margin for the quarter that ended in Sep. 2018 is calculated as


Gross Margin % (Q: Sep. 2018 )=Gross Profit (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=63.4 / 87.174
=(Revenue - Cost of Goods Sold) / Revenue
=(87.174 - 23.789) / 87.174
=72.71 %

* 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.


Hortonworks  (NAS:HDP) 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

Hortonworks had a gross margin of 72.71% for the quarter that ended in Sep. 2018 => 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.


Hortonworks Gross Margin % Related Terms

Thank you for viewing the detailed overview of Hortonworks's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Hortonworks (Hortonworks) Business Description

Traded in Other Exchanges
N/A
Address
Hortonworks Inc is a provider of data management software solutions that allows corporations to harness the power of big data. The firm's Data at Rest solution is an enterprise-scale platform built for interactive, real-time workloads to be executed simultaneously on a single data set. The Data in Motion solution provides customers the ability to ingest any type of data from multiple data sources. These solutions can centrally manage new and existing data types, run multiple applications simultaneously, and provide security, data governance, stability and scalability. The company derives revenue from subscriptions to software offerings and professional fees. A large majority of the firm's revenue is generated in the United States.
Executives
Martin Fink director C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Scott Reasoner officer: See Remarks C/O QUEST SOFTWARE, INC. 5 POLARIS WAY ALISO VIEJO CA 92656
Peter H Fenton director 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Scott E Gnau officer: Chief Technology Officer 17095 VIA DEL CAMPO, SAN DIEGO CA 92127
Scott Davidson officer: See Remarks 5470 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Robert G Bearden director, officer: President & CEO I2 11701 LUNA ROAD DALLAS TX 75234
Kevin Klausmeyer director 2101 CITYWEST BLVD, HOUSTON TX 77042-2827
Paul J Cormier director C/O RED HAT, INC, 100 EAST DAVIE STREET, RALEIGH NC 27601
Michelangelo Volpi director C/O HORTONWORKS, INC., 3640 W. BAYSHORE RD., PALO ALTO CA 94303
Alexandre Balkanski 10 percent owner 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Matt Cohler 10 percent owner 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Kevin Harvey 10 percent owner 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Bruce Dunlevie 10 percent owner 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Steven M Spurlock 10 percent owner 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
J William Gurley 10 percent owner 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025