Vtex (VTEX) Gross Margin % : 71.96% (As of Mar. 2024)

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What is Vtex Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vtex's Gross Profit for the three months ended in Mar. 2024 was $37.9 Mil. Vtex's Revenue for the three months ended in Mar. 2024 was $52.6 Mil. Therefore, Vtex's Gross Margin % for the quarter that ended in Mar. 2024 was 71.96%.

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

VTEX' s Gross Margin % Range Over the Past 10 Years
Min: 60.57 Med: 66.48 Max: 71.14
Current: 71.14

During the past 6 years, the highest Gross Margin % of Vtex was 71.14%. The lowest was 60.57%. And the median was 66.48%.

VTEX's Gross Margin % is ranked better than
79.67% of 2631 companies
in the Software industry
Industry Median: 41.74 vs VTEX: 71.14

Vtex had a gross margin of 71.96% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vtex was 0.00% per year.

Vtex Gross Margin % Historical Data

The historical data trend for Vtex'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.

Vtex Gross Margin % Chart

Vtex Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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66.99

64.68

60.57

66.48

69.75

Vtex Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial													65.55	67.62	70.33	73.89	71.96

Competitive Comparison of Vtex's Gross Margin %

For the Software - Application subindustry, Vtex'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.

Vtex's Gross Margin % Distribution in the Software Industry

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

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

Vtex Gross Margin % Calculation

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

Vtex'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 )
	=	140.6	/	201.517
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(201.517 - 60.949)	/	201.517
	=	69.75 %

Vtex's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	37.9	/	52.648
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(52.648 - 14.76)	/	52.648
	=	71.96 %

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.

Vtex (NYSE:VTEX) 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

Vtex had a gross margin of 71.96% for the quarter that ended in Mar. 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.

Vtex Gross Margin % Related Terms

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Vtex (VTEX) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

125 Kingsway, Aviation House, London, GBR, WC2B 6NH

Website

https://www.vtex.com

Vtex provides a software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It generates maximum revenues from Brazil followed by Latin America and the rest of the world.