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Points.com (Points.com) Gross Margin % : 14.67% (As of Mar. 2022)


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What is Points.com Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Points.com's Gross Profit for the three months ended in Mar. 2022 was $18.7 Mil. Points.com's Revenue for the three months ended in Mar. 2022 was $127.4 Mil. Therefore, Points.com's Gross Margin % for the quarter that ended in Mar. 2022 was 14.67%.


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


PCOM's Gross Margin % is not ranked *
in the Interactive Media industry.
Industry Median: 60.98
* Ranked among companies with meaningful Gross Margin % only.

Points.com had a gross margin of 14.67% for the quarter that ended in Mar. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Points.com was 0.00% per year.


Points.com Gross Margin % Historical Data

The historical data trend for Points.com'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.

Points.com Gross Margin % Chart

Points.com Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.35 14.33 16.32 16.10 13.73

Points.com Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 13.84 11.95 14.26 14.85 14.67

Competitive Comparison of Points.com's Gross Margin %

For the Internet Content & Information subindustry, Points.com'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.


Points.com's Gross Margin % Distribution in the Interactive Media Industry

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

* The bar in red indicates where Points.com's Gross Margin % falls into.



Points.com Gross Margin % Calculation

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

Points.com's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=50.8 / 370.008
=(Revenue - Cost of Goods Sold) / Revenue
=(370.008 - 319.217) / 370.008
=13.73 %

Points.com's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=18.7 / 127.416
=(Revenue - Cost of Goods Sold) / Revenue
=(127.416 - 108.73) / 127.416
=14.67 %

* 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.


Points.com  (NAS:PCOM) 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

Points.com had a gross margin of 14.67% for the quarter that ended in Mar. 2022 => No sustainable 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.


Points.com Gross Margin % Related Terms

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


Points.com (Points.com) Business Description

Traded in Other Exchanges
N/A
Address
111 Richmond Street, Suite 700, Toronto, ON, CAN, M5H 2G4
Points.com Inc is a Canadian company which is engaged in providing web-based solutions to the loyalty program industry. It offers e-commerce services include the retailing and wholesaling of loyalty program currencies, a range of additional e-commerce products and management of an online consumer-focused loyalty points management web-portal. The company's operating segments are Loyalty Currency Retailing, Platform Partners, and Points Travel. It generates maximum revenue from the Loyalty Currency Retailing segment. The majority of the company's revenue is derived from the United States.
Executives
D Jonathan Merriman 10 percent owner MERRIMAN CURHAN FORD & CO 600 CALIFORNIA ST., 9TH FLOOR SAN FRANCISCO CA 94108
Phineus Voyager Fund, Lp 10 percent owner 600 CALIFORNIA STREET 9TH FLOOR SAN FRANCISCO CA 94108
Tamalpais Management Group, Lp 10 percent owner 600 CALIFORNIA STREET 9TH FLOOR SAN FRANCISCO CA 94108
Tamalpais Masterfund, Ltd 10 percent owner 600 CALIFORNIA STREET SUITE 540 SAN FRANCISCO CA 94108
Merriman Curhan Ford & Co 10 percent owner 600 CALIFORNIA STREET 9TH FLOOR SAN FRANCISCO CA 94108