XTM (XCNQ:PAID) Gross Margin % : 5.12% (As of Sep. 2023)

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What is XTM Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. XTM's Gross Profit for the three months ended in Sep. 2023 was C$0.10 Mil. XTM's Revenue for the three months ended in Sep. 2023 was C$1.90 Mil. Therefore, XTM's Gross Margin % for the quarter that ended in Sep. 2023 was 5.12%.

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

XCNQ:PAID' s Gross Margin % Range Over the Past 10 Years
Min: 2.7 Med: 19.65 Max: 31.93
Current: 9.65

During the past 5 years, the highest Gross Margin % of XTM was 31.93%. The lowest was 2.70%. And the median was 19.65%.

XCNQ:PAID's Gross Margin % is ranked worse than
92.73% of 2629 companies
in the Software industry
Industry Median: 41.73 vs XCNQ:PAID: 9.65

XTM had a gross margin of 5.12% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

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

XTM Gross Margin % Historical Data

The historical data trend for XTM'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.

XTM Gross Margin % Chart

XTM Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

31.93

24.45

9.73

2.70

19.65

XTM Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial														23.09	20.84	13.78	12.25	5.12

Competitive Comparison of XTM's Gross Margin %

For the Information Technology Services subindustry, XTM'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.

XTM's Gross Margin % Distribution in the Software Industry

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

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

XTM Gross Margin % Calculation

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

XTM's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	0.9	/	4.734
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4.734 - 3.804)	/	4.734
	=	19.65 %

XTM's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	0.1	/	1.895
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.895 - 1.798)	/	1.895
	=	5.12 %

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.

XTM (XCNQ:PAID) 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

XTM had a gross margin of 5.12% for the quarter that ended in Sep. 2023 => No sustainable 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.

XTM Gross Margin % Related Terms

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XTM (XCNQ:PAID) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » XTM Inc (XCNQ:PAID) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

XTMIF:USA 7XT:Germany

Address

67 Mowat Avenue, Suite 437, Toronto, ON, CAN, M6K 1E3

Website

https://www.xtminc.com

XTM Inc is a fintech company. The company provides necessary support systems including mobile and web applications and ancillary banking services. Its product includes Issuing Cards; Pre-Authorized Debit; Direct Deposit Accounts; Digital Banking; Visa Direct/Mastercard Send; ACH/EFT transfers and Reverse ATM. The company serves Hospitality and Salons; Payroll; Government Payouts companies. Its revenues are primarily generated from financial service fees charged to cardholders and merchants accepting the cards for payment. Revenue from financial services is generated from multiple sources including transaction fees, cardholder fees, load fees, and interchange fees.

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