Gross Margin % is calculated as gross profit divided by its revenue. Paymentus Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $49.5 Mil. Paymentus Holdings's Revenue for the
three
months ended in Dec. 2023 was $164.8 Mil. Therefore, Paymentus Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 30.03%.
The historical rank and industry rank for Paymentus Holdings's Gross Margin % or its related term are showing as below:
PAY'
s Gross Margin % Range Over the Past 10 Years
Min: 29.67 Med: 30.69 Max: 31.57
Current: 29.67
During the past 5 years, the highestGross Margin % of Paymentus Holdings was 31.57%. The lowest was 29.67%. And the median was 30.69%.
PAY's Gross Margin % is ranked worse than 66.1% of 2628
companies
in the Software industry
Industry Median: 41.685
vs PAY: 29.67
Paymentus Holdings had a gross margin of 30.03% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Paymentus Holdings was 0.00% per year.
Paymentus Holdings Gross Margin % Historical Data
The historical data trend for Paymentus 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.
Paymentus Holdings Annual Data
Trend
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
31.57
30.69
30.69
30.12
29.67
Paymentus Holdings Quarterly Data
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
31.12
27.02
30.79
30.78
30.03
Competitive Comparison
For the Software - Infrastructure subindustry, Paymentus 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.
Paymentus Holdings Gross Margin % Distribution
For the Software industry and Technology sector, Paymentus Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paymentus 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
Paymentus Holdings had a gross margin of 30.03% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
Paymentus Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Paymentus Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Paymentus Holdings (Paymentus Holdings) Business Description
Paymentus Holdings Inc provides electronic bill presentment and payment services, enterprise customer communication and self-service revenue management to billers and financial institutions through a Software-as-a-Service, (SaaS), secure, omni-channel technology platform. The platform integrates into a biller's core financial and operating systems to provide flexible and secure access to payment processing of credit cards, debit cards, eChecks and digital wallets across a number of channels including online, mobile, IVR, call center, chatbot and voice-based assistants. The Company generates revenue from payment transaction fees processed through the Company's platform. The fees are generated as a percentage of transaction value or a specified fee per transaction.
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