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Leaf Group (Leaf Group) Gross Margin % : 33.04% (As of Mar. 2021)


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What is Leaf Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Leaf Group's Gross Profit for the three months ended in Mar. 2021 was $17.1 Mil. Leaf Group's Revenue for the three months ended in Mar. 2021 was $51.9 Mil. Therefore, Leaf Group's Gross Margin % for the quarter that ended in Mar. 2021 was 33.04%.

Warning Sign:

Leaf Group Ltd gross margin has been in long term decline. The average rate of decline per year is -4.1%.


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

LEAF' s Gross Margin % Range Over the Past 10 Years
Min: 32.01   Med: 42.32   Max: 73.85
Current: 32.01


During the past 13 years, the highest Gross Margin % of Leaf Group was 73.85%. The lowest was 32.01%. And the median was 42.32%.

LEAF's Gross Margin % is not ranked
in the Interactive Media industry.
Industry Median: 60.98 vs LEAF: 32.01

Leaf Group had a gross margin of 33.04% for the quarter that ended in Mar. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Leaf Group was -4.10% per year.


Leaf Group Gross Margin % Historical Data

The historical data trend for Leaf Group'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.

Leaf Group Gross Margin % Chart

Leaf Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.49 39.45 41.20 40.23 32.20

Leaf Group Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
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 34.81 32.56 33.25 29.57 33.04

Competitive Comparison of Leaf Group's Gross Margin %

For the Internet Content & Information subindustry, Leaf Group'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.


Leaf Group's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Leaf Group's Gross Margin % distribution charts can be found below:

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



Leaf Group Gross Margin % Calculation

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

Leaf Group's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=68.3 / 212.061
=(Revenue - Cost of Goods Sold) / Revenue
=(212.061 - 143.783) / 212.061
=32.20 %

Leaf Group's Gross Margin for the quarter that ended in Mar. 2021 is calculated as


Gross Margin % (Q: Mar. 2021 )=Gross Profit (Q: Mar. 2021 ) / Revenue (Q: Mar. 2021 )
=17.1 / 51.877
=(Revenue - Cost of Goods Sold) / Revenue
=(51.877 - 34.739) / 51.877
=33.04 %

* 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.


Leaf Group  (NYSE:LEAF) 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

Leaf Group had a gross margin of 33.04% for the quarter that ended in Mar. 2021 => Competition eroding margins


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.


Leaf Group Gross Margin % Related Terms

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


Leaf Group (Leaf Group) Business Description

Traded in Other Exchanges
N/A
Address
1655 26th Street, Santa Monica, CA, USA, 90404
Leaf Group Ltd is a diversified consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness and home, art and design. The company operates in three segments: Society6 Group, Saatchi Art Group, and Media Group. Society6 Group is made-to-order marketplace business and includes Society6.com and its wholesale channel. Saatchi Art Group which includes SaatchiArt.com and its complementary art fair event brand, The Other Art Fair which is online art gallery with a focus on emerging artists. Its Media Group segment consists of a diverse portfolio of media properties that educate and inform consumers on a broad range of topics.
Executives
Adam F. Wergeles officer: EVP, Gen Counsel & Secretary C/O REACHLOCAL, INC. 21700 OXNARD STREET, SUITE 1600 WOODLAND HILLS CA 91367
Sean P Moriarty director, officer: Chief Executive Officer C/O LEAF GROUP LTD., 1655 26TH STREET, SANTA MONICA CA 90404
Brian Gephart officer: Chief Financial Officer 1655 26TH STREET, SANTA MONICA CA 90404
Spectrum Equity Investors V L P 10 percent owner ONE INTERNATIONAL PLACE 29TH FL BOSTON MA 02110
Osmium Capital Ii, Lp other: May be member of 10% group 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
John Hartnett Lewis other: May be member of 10% group 388 MARKET STREET, SUITE 920, SAN FRANCISCO CA 94111
Osmium Spartan L P other: May be member of 10% group 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Osmium Partners, Llc other: May be member of 10% group 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Osmium Capital Lp other: May be member of 10% group 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Sea V Management Llc 10 percent owner 333 MIDDLEFIELD ROAD SUITE 200 MENLO PARK CA 94025
Spectrum Equity Associates V Lp 10 percent owner 333 MIDDLEFIELD ROAD SUITE 200 MENLO PARK CA 94025
Spectrum V Investment Managers Fund Lp 10 percent owner 333 MIDDLEFIELD ROAD SUITE 200 MENLO PARK CA 94025
Osmium Diamond, Lp other: May be member of 10% group C/O OSMIUM PARTNERS, LLC, 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Brian Pike officer: CTO & COO C/O LEAF GROUP LTD. 1655 26TH STREET SANTA MONICA CA 90404
Boyle Capital Management, L.l.c. other: May be member of 10% group 1230 OFFICE PLAZA DRIVE WEST DES MOINES IA 50266-2300