Lightspeed Commerce (TSX:LSPD) Gross Margin % : 42.34% (As of Dec. 2023)

View and export this data going back to 2019. Start your Free Trial

What is Lightspeed Commerce Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lightspeed Commerce's Gross Profit for the three months ended in Dec. 2023 was C$136 Mil. Lightspeed Commerce's Revenue for the three months ended in Dec. 2023 was C$322 Mil. Therefore, Lightspeed Commerce's Gross Margin % for the quarter that ended in Dec. 2023 was 42.34%.

Warning Sign:

Lightspeed Commerce Inc gross margin has been in long-term decline. The average rate of decline per year is -8.9%.

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

TSX:LSPD' s Gross Margin % Range Over the Past 10 Years
Min: 43.17 Med: 61.79 Max: 69.56
Current: 43.17

During the past 8 years, the highest Gross Margin % of Lightspeed Commerce was 69.56%. The lowest was 43.17%. And the median was 61.79%.

TSX:LSPD's Gross Margin % is ranked better than
52.05% of 2628 companies
in the Software industry
Industry Median: 41.71 vs TSX:LSPD: 43.17

Lightspeed Commerce had a gross margin of 42.34% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lightspeed Commerce was -8.90% per year.

Lightspeed Commerce Gross Margin % Historical Data

The historical data trend for Lightspeed Commerce'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.

Lightspeed Commerce Gross Margin % Chart

Lightspeed Commerce Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

Get a 7-Day Free Trial

69.56

64.19

57.58

49.45

45.44

Lightspeed Commerce Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															45.58	47.20	42.04	41.76	42.34

Competitive Comparison of Lightspeed Commerce's Gross Margin %

For the Software - Application subindustry, Lightspeed Commerce'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.

Lightspeed Commerce's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Lightspeed Commerce's Gross Margin % falls into.

Lightspeed Commerce Gross Margin % Calculation

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

Lightspeed Commerce's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	454.2	/	999.551
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(999.551 - 545.329)	/	999.551
	=	45.44 %

Lightspeed Commerce's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	136.1	/	321.575
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(321.575 - 185.433)	/	321.575
	=	42.34 %

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.

Lightspeed Commerce (TSX:LSPD) 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

Lightspeed Commerce had a gross margin of 42.34% for the quarter that ended in Dec. 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.

Lightspeed Commerce Gross Margin % Related Terms

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

Lightspeed Commerce (TSX:LSPD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Lightspeed Commerce Inc (TSX:LSPD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

LSPD:USA 3L50:Germany

Address

700 Saint-Antoine Street East, Suite 300, Montreal, QC, CAN, H2Y 1A6

Website

https://www.lightspeedhq.com

Lightspeed Commerce Inc provides an omni-channel commerce-enabling SaaS platform. Its software platform provides customers with the functionality it needs to engage with consumers, manage their operations, accept payments, and grow their business. The company sells its platform through a direct sales force in the United States, Canada, New Zealand, United Kingdom, Australia and other countries. It derives a majority of its revenue from the United States.