Gross Margin % is calculated as gross profit divided by its revenue. Paya Holdings's Gross Profit for the
three
months ended in Jun. 2022 was $36.8 Mil. Paya Holdings's Revenue for the
three
months ended in Jun. 2022 was $72.5 Mil. Therefore, Paya Holdings's Gross Margin % for the quarter that ended in Jun. 2022 was 50.70%.
The historical rank and industry rank for Paya Holdings's Gross Margin % or its related term are showing as below:
PAYA'
s Gross Margin % Range Over the Past 10 Years
Min: 48.12 Med: 50.25 Max: 52.18
Current: 51.64
During the past 4 years, the highestGross Margin % of Paya Holdings was 52.18%. The lowest was 48.12%. And the median was 50.25%.
PAYA's Gross Margin % is ranked better than 56.91% of 2483
companies
in the Software industry
Industry Median: 45.55
vs PAYA: 51.64
Paya Holdings had a gross margin of 50.70% for the quarter that ended in Jun. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Paya Holdings was 0.00% per year.
Paya Holdings Gross Margin % Historical Data
The historical data trend for Paya Holdings'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.
Paya Holdings Annual Data
Trend
Dec18
Dec19
Dec20
Dec21
Gross Margin %
48.12
50.06
50.44
52.18
Paya Holdings Quarterly Data
Dec18
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
52.80
51.63
51.68
52.66
50.70
Competitive Comparison
For the Software - Infrastructure subindustry, Paya Holdings'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.
Paya Holdings Gross Margin % Distribution
For the Software industry and Technology sector, Paya Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paya Holdings'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.
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
Paya Holdings had a gross margin of 50.70% for the quarter that ended in Jun. 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.
Paya Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Paya Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Paya Holdings Inc is a provider of integrated payment and frictionless commerce solutions that help customers accept and make payments, expedite receipt of money, and increase operating efficiencies. Its operating segment includes Integrated Solutions and Payment Services. The company generates maximum revenue from the Integrated Solutions segment. Integrated Solutions segment represents the delivery of credit and debit card payment solutions, and to a lesser extent, ACH processing solutions to customers via integrations with software partners across strategic vertical markets. Integrated Solutions partners also include vertical focused front-end Customer Relationship Management software providers as well as back-end Enterprise Resource Planning and accounting solutions.
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