Gross Margin % is calculated as gross profit divided by its revenue. UiPath's Gross Profit for the
three
months ended in Jan. 2024 was $352 Mil. UiPath's Revenue for the
three
months ended in Jan. 2024 was $405 Mil. Therefore, UiPath's Gross Margin % for the quarter that ended in Jan. 2024 was 86.84%.
The historical rank and industry rank for UiPath's Gross Margin % or its related term are showing as below:
PATH'
s Gross Margin % Range Over the Past 10 Years
Min: 81.07 Med: 82.99 Max: 89.16
Current: 85.02
During the past 5 years, the highestGross Margin % of UiPath was 89.16%. The lowest was 81.07%. And the median was 82.99%.
PATH's Gross Margin % is ranked better than 90.64% of 2628
companies
in the Software industry
Industry Median: 41.71
vs PATH: 85.02
UiPath had a gross margin of 86.84% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for UiPath was 0.00% per year.
UiPath Gross Margin % Historical Data
The historical data trend for UiPath'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 Software - Infrastructure subindustry, UiPath'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.
UiPath's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, UiPath's Gross Margin % distribution charts can be found below:
* The bar in red indicates where UiPath'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.
UiPath (NYSE:PATH) 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
UiPath had a gross margin of 86.84% for the quarter that ended in Jan. 2024 => 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.
UiPath Gross Margin % Related Terms
Thank you for viewing the detailed overview of UiPath's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
UiPath Inc creates an end-to-end platform that provides automation with user emulation at its core. Its platform is built to be used by employees throughout a company and to address a wide variety of use cases, from simple tasks to long-running, complex business processes. It generates revenue from the sale of licenses for its proprietary software, maintenance and support, and professional services. It generates a majority of its revenues from the US, followed by Romania.
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