Gross Margin % is calculated as gross profit divided by its revenue. PLAYSTUDIOS's Gross Profit for the
three
months ended in Dec. 2023 was $57.6 Mil. PLAYSTUDIOS's Revenue for the
three
months ended in Dec. 2023 was $77.1 Mil. Therefore, PLAYSTUDIOS's Gross Margin % for the quarter that ended in Dec. 2023 was 74.68%.
The historical rank and industry rank for PLAYSTUDIOS's Gross Margin % or its related term are showing as below:
MYPS'
s Gross Margin % Range Over the Past 10 Years
Min: 66.11 Med: 68.12 Max: 74.98
Current: 74.98
During the past 5 years, the highestGross Margin % of PLAYSTUDIOS was 74.98%. The lowest was 66.11%. And the median was 68.12%.
MYPS's Gross Margin % is ranked better than 63.41% of 522
companies
in the Interactive Media industry
Industry Median: 60.98
vs MYPS: 74.98
PLAYSTUDIOS had a gross margin of 74.68% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PLAYSTUDIOS was 0.00% per year.
PLAYSTUDIOS Gross Margin % Historical Data
The historical data trend for PLAYSTUDIOS'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.
For the Electronic Gaming & Multimedia subindustry, PLAYSTUDIOS'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.
PLAYSTUDIOS Gross Margin % Distribution
For the Interactive Media industry and Communication Services sector, PLAYSTUDIOS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PLAYSTUDIOS'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.
PLAYSTUDIOS (NAS:MYPS) 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
PLAYSTUDIOS had a gross margin of 74.68% 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.
PLAYSTUDIOS Gross Margin % Related Terms
Thank you for viewing the detailed overview of PLAYSTUDIOS's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
PLAYSTUDIOS Inc is engaged in gaming and related business. The Company develops and operates online and mobile social gaming applications (games or game), many of which incorporate a loyalty program offering real world rewards provided by a collection of awards partners. The Company's games are free-to-play and available via the Apple App Store, Google Play Store, Amazon Appstore, and Facebook (collectively, platforms or platform operators). The Company creates games based on its own original content as well as third-party licensed brands. The Company generates revenue through the in-game sale of virtual currency and through advertising. The company has one operating segment with one business activity, developing and monetizing social games.
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