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Sonic Foundry Gross Margin %

: 69.73% (As of Jun. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Sonic Foundry's Gross Profit for the three months ended in Jun. 2021 was $6.04 Mil. Sonic Foundry's Revenue for the three months ended in Jun. 2021 was $8.66 Mil. Therefore, Sonic Foundry's Gross Margin % for the quarter that ended in Jun. 2021 was 69.73%.


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

OTCPK:SOFO' s Gross Margin % Range Over the Past 10 Years
Min: 70.83   Med: 72.25   Max: 73.71
Current: 71.42

70.83
73.71

During the past 13 years, the highest Gross Margin % of Sonic Foundry was 73.71%. The lowest was 70.83%. And the median was 72.25%.

OTCPK:SOFO's Gross Margin % is ranked higher than
62% of the 525 Companies
in the Software industry.

( Industry Median: 60.80 vs. OTCPK:SOFO: 71.42 )

Sonic Foundry had a gross margin of 69.73% for the quarter that ended in Jun. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sonic Foundry was 0.20% per year.


Sonic Foundry Gross Margin % Historical Data

The historical data trend for Sonic Foundry'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.

Sonic Foundry Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 73.71 72.59 72.05 73.32 72.28

Sonic Foundry Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 72.59 71.64 73.69 70.44 69.73

Competitive Comparison

For the Software - Application subindustry, Sonic Foundry'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.

   

Sonic Foundry Gross Margin % Distribution

For the Software industry and Technology sector, Sonic Foundry's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sonic Foundry's Gross Margin % falls into.



Sonic Foundry Gross Margin % Calculation

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

Sonic Foundry's Gross Margin for the fiscal year that ended in Sep. 2020 is calculated as

Gross Margin % (A: Sep. 2020 )=Gross Profit (A: Sep. 2020 ) / Revenue (A: Sep. 2020 )
=25.1 / 34.753
=(Revenue - Cost of Goods Sold) / Revenue
=(34.753 - 9.634) / 34.753
=72.28 %

Sonic Foundry's Gross Margin for the quarter that ended in Jun. 2021 is calculated as


Gross Margin % (Q: Jun. 2021 )=Gross Profit (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=6 / 8.661
=(Revenue - Cost of Goods Sold) / Revenue
=(8.661 - 2.622) / 8.661
=69.73 %

* 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.


Sonic Foundry  (OTCPK:SOFO) 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

Sonic Foundry had a gross margin of 69.73% for the quarter that ended in Jun. 2021 => 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.


Sonic Foundry Gross Margin % Related Terms

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


Sonic Foundry Business Description

Sonic Foundry logo
Industry
Technology » Software NAICS : 511210 SIC : 7372
Traded in Other Exchanges
N/A
Address
222 W. Washington Avenue, Madison, WI, USA, 53703
Sonic Foundry Inc is engaged in the business of providing video enterprise solutions and services for the digital-first, distance learning, and corporate communications market. It offers video capture, management, and Webcasting solutions in education, business, and government. The company also offers video solutions, including Mediasite Video Platform, Mediasite Video Cloud, Mediasite Capture Solutions, Mediasite Events, Mediasite Services, and Mediasite Customer Care. The company has a geographical presence in the United States, Europe, and the Middle East, Asia, and other places.
Executives
Burish Mark D director, 10 percent owner HURLEY, BURISH, MILLIKEN S.C. 301 NORTH BROOM STREET MADISON WI 53703
Kopko Frederick H Jr director 4901 S ELLIS AVE CHICAGO IL 60615
Murphy Nelson A director 2300 W INNES ST SALISBURY NC 28144
Wiegand Brian director 8215 GREENWAY BLVD, SUITE 340 MIDDLETON WI 53562
Slayton David director 701 WASHINGTON AVE N. SUITE #400 MINNEAPOLIS WI 55401
Norregaard Michael officer: Chief Executive Officer 4891 ENCHANTED VALLEY ROAD MIDDLETON WI 53562
Burish Andrew D. 10 percent owner 8020 EXCELSIOR DRIVE MADISON WI 53717
Minor Kenneth A officer: Chief Financial Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MINOR KENNETH A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Weis Gary director, officer: Chief Executive Officer & CTO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: WEIS GARY a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Lipps Robert M officer: Executive Vice President Sales 222 W. WASHINGTON AVE. MADISON WI 53703
Kleinman David director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: KLEINMAN DAVID a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Peercy Paul S director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: PEERCY PAUL S a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Michael Janowiak director 549 W RANDOLPH #600 CHICAGO IL 60651
Buinevicius Rimas director, officer: Chairman & Strategy Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BUINEVICIUS RIMAS a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Schmidt Monty director, 10 percent owner, officer: Chief Technology Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SCHMIDT MONTY a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
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