Gross Margin % is calculated as gross profit divided by its revenue. LivePerson's Gross Profit for the
three
months ended in Dec. 2023 was $58.6 Mil. LivePerson's Revenue for the
three
months ended in Dec. 2023 was $95.5 Mil. Therefore, LivePerson's Gross Margin % for the quarter that ended in Dec. 2023 was 61.39%.
Warning Sign:
LivePerson Inc gross margin has been in long-term decline. The average rate of decline per year is -3.4%.
The historical rank and industry rank for LivePerson's Gross Margin % or its related term are showing as below:
LPSN'
s Gross Margin % Range Over the Past 10 Years
Min: 64.12 Med: 71.33 Max: 74.99
Current: 64.47
During the past 13 years, the highestGross Margin % of LivePerson was 74.99%. The lowest was 64.12%. And the median was 71.33%.
LPSN's Gross Margin % is ranked better than 72.98% of 2624
companies
in the Software industry
Industry Median: 41.67
vs LPSN: 64.47
LivePerson had a gross margin of 61.39% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for LivePerson was -3.40% per year.
LivePerson Gross Margin % Historical Data
The historical data trend for LivePerson'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 LivePerson's Gross Margin %
For the Software - Application subindustry, LivePerson'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.
LivePerson's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, LivePerson's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LivePerson'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.
LivePerson (NAS:LPSN) 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
LivePerson had a gross margin of 61.39% 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.
LivePerson Gross Margin % Related Terms
Thank you for viewing the detailed overview of LivePerson's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
LivePerson Inc offers cloud-based platform solutions. It enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging, while leveraging bots and Artificial Intelligence (AI) to increase efficiency. The company has two reportable segments namely Business and Consumer. It generates maximum revenue from the Business segment. The Business segment enables brands to leverage the Conversational Cloud's sophisticated intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company has a presence in the United Kingdom, Asia-Pacific, Latin America, and Europe.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LPSN has been successfully added to your 