Gross Margin % is calculated as gross profit divided by its revenue. DocuSign's Gross Profit for the
three
months ended in Jan. 2022 was $449 Mil. DocuSign's Revenue for the
three
months ended in Jan. 2022 was $581 Mil. Therefore, DocuSign's Gross Margin % for the quarter that ended in Jan. 2022 was 77.37%.
The historical rank and industry rank for DocuSign's Gross Margin % or its related term are showing as below:
DOCU'
s Gross Margin % Range Over the Past 10 Years
Min: 70.51 Med: 74.95 Max: 77.86
Current: 77.86
During the past 7 years, the highestGross Margin % of DocuSign was 77.86%. The lowest was 70.51%. And the median was 74.95%.
DOCU's Gross Margin % is ranked better than 82.13% of 2462
companies
in the Software industry
Industry Median: 45.44
vs DOCU: 77.86
DocuSign had a gross margin of 77.37% for the quarter that ended in Jan. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for DocuSign was 0.70% per year.
DocuSign Gross Margin % Historical Data
The historical data trend for DocuSign'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.
DocuSign Annual Data
Trend
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Gross Margin %
77.19
72.55
75.03
74.95
77.86
DocuSign Quarterly Data
Apr17
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Gross Margin %
76.43
77.56
77.77
78.74
77.37
Competitive Comparison
For the Software - Application subindustry, DocuSign'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.
DocuSign Gross Margin % Distribution
For the Software industry and Technology sector, DocuSign's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DocuSign'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.
DocuSign (NAS:DOCU) 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
DocuSign had a gross margin of 77.37% for the quarter that ended in Jan. 2022 => 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.
DocuSign Gross Margin % Related Terms
Thank you for viewing the detailed overview of DocuSign's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its IPO in May 2018.
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