Vertex (Vertex) Gross Margin % : 60.42% (As of Dec. 2023)

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What is Vertex Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vertex's Gross Profit for the three months ended in Dec. 2023 was $93.6 Mil. Vertex's Revenue for the three months ended in Dec. 2023 was $154.9 Mil. Therefore, Vertex's Gross Margin % for the quarter that ended in Dec. 2023 was 60.42%.

Warning Sign:

Vertex Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.

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

VERX' s Gross Margin % Range Over the Past 10 Years
Min: 55.86 Med: 61.43 Max: 65.67
Current: 60.9

During the past 6 years, the highest Gross Margin % of Vertex was 65.67%. The lowest was 55.86%. And the median was 61.43%.

VERX's Gross Margin % is ranked better than
69.29% of 2628 companies
in the Software industry
Industry Median: 41.71 vs VERX: 60.90

Vertex had a gross margin of 60.42% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vertex was -1.30% per year.

Vertex Gross Margin % Historical Data

The historical data trend for Vertex'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.

Vertex Gross Margin % Chart

Vertex Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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65.67

55.86

61.96

60.72

60.90

Vertex 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															62.27	61.02	61.43	60.79	60.42

Competitive Comparison of Vertex's Gross Margin %

For the Software - Application subindustry, Vertex'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.

Vertex's Gross Margin % Distribution in the Software Industry

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

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

Vertex Gross Margin % Calculation

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

Vertex's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	348.6	/	572.387
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(572.387 - 223.808)	/	572.387
	=	60.90 %

Vertex'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 )
	=	93.6	/	154.914
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(154.914 - 61.311)	/	154.914
	=	60.42 %

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.

Vertex (NAS:VERX) 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

Vertex had a gross margin of 60.42% 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.

Vertex Gross Margin % Related Terms

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Vertex (Vertex) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Vertex Inc (NAS:VERX) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

56X:Germany

Address

2301 Renaissance Boulevard, King of Prussia, PA, USA, 19406

Website

https://www.vertexinc.com

Vertex Inc is a provider of tax technology and services. It enables companies to realize the full strategic potential of the tax function by automating and integrating tax processes while leveraging advanced and predictive analytics of tax data. Vertex provides cloud-based and on-premise solutions to specific industries for every line of tax, including income, sales, consumer use, value-added, and payroll. The company offers solutions such as tax determination, Tax Data Management, document management, and compliance and reporting among others. The company derives revenue from software subscriptions.

Executives

John R Schwab	officer: Chief Financial Officer	C/O NCO GROUP, INC., 507 PRUDENTIAL ROAD, HORSHAM PA 19044
Item Second Irr. Trust Fbo Jacob J. Westphal U/a Of Jeffrey R. Westphal Dated October 5, 2001	10 percent owner, other: 13(d) Group Member	C/O VERTEX, INC., 2301 RENAISSANCE BLVD., KING OF PRUSSIA PA 19406
Item Second Irr. Trust Fbo Anne Marie Westphal U/a Of Jeffrey R. Westphal Dated October 5, 2001	10 percent owner, other: 13(d) Group Member	C/O VERTEX, INC., 2301 RENAISSANCE BLVD., KING OF PRUSSIA PA 19406
Eric C. Andersen	director	C/O AMERICAN PUBLIC EDUCATION, INC., 111 W. CONGRESS STREET, CHARLES TOWN WV 25414
Jeffery Westphal	director, 10 percent owner	C/O VERTEX, INC., 2301 RENAISSANCE BLVD., KING OF PRUSSIA PA 19406
Item Second Irr. Trust Fbo Kyle R. Westphal U/a Of Jeffrey R. Westphal Dated October 5, 2001	10 percent owner, other: 13(d) Group Member	C/O VERTEX, INC., 2301 RENAISSANCE BLVD., KING OF PRUSSIA PA 19406
Tensile Capital Management Lp	10 percent owner	700 LARKSPUR LANDING CIRCLE, SUITE 255, LARKSPUR CA 94939
John Richard Stamm	director	C/O VERTEX, INC., 2301 RENAISSANCE BLVD., KING OF PRUSSIA PA 19406
Lisa Butler	officer: Chief Accounting Officer	C/O VERTEX, INC., 2301 RENAISSANCE BLVD., KING OF PRUSSIA PA 19406
David Destefano	director, officer: President & CEO	C/O VERTEX, INC., 2301 RENAISSANCE BLVD., KING OF PRUSSIA PA 19406
Rowland Bryan T.r.	officer: General Counsel	101 WOLF DRIVE, THOROFARE NJ 08086
Kevin L Robert	director	501 KANSAS AVENUE, KANSAS CITY KS 66105
Philip Seth Saunders	director	13 MAPLE KNOLL LANE, MANALAPAN NJ 07726
Amanda Westphal Radcliffe	director, 10 percent owner	C/O VERTEX, INC., 2301 RENAISSANCE BLVD., KING OF PRUSSIA PA 19406
Bradley M Gayton	director	ONE COCA-COLA PLAZA, ATLANTA GA 30313