Sonic Foundry Inc gross margin has been in long-term decline. The average rate of decline per year is -3.6%.
The historical rank and industry rank for Sonic Foundry's Gross Margin % or its related term are showing as below:
SOFO'
s Gross Margin % Range Over the Past 10 Years
Min: 58.14 Med: 71.69 Max: 73.71
Current: 58.14
During the past 13 years, the highestGross Margin % of Sonic Foundry was 73.71%. The lowest was 58.14%. And the median was 71.69%.
SOFO's Gross Margin % is ranked better than 66.32% of 2628
companies
in the Software industry
Industry Median: 41.685
vs SOFO: 58.14
Sonic Foundry had a gross margin of 57.88% for the quarter that ended in Sep. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sonic Foundry was -3.60% 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.
Competitive Comparison of Sonic Foundry's Gross Margin %
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's Gross Margin % Distribution in the Software Industry
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.
* 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 57.88% for the quarter that ended in Sep. 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.
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 (Sonic Foundry) Business Description
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 streaming solutions as well as virtual and hybrid events in education, business, and government. Sonic Foundry's family of brands includes Mediasite, Video Solutions, Vidable and Global Learning Exchange. 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.
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