Avid Technology's gross profit for the
three
months ended in Sep. 2023 was $57.9 Mil. Avid Technology's gross profit for the trailing twelve months (TTM) ended in Sep. 2023 was $261.0 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Avid Technology's gross profit for the
three
months ended in Sep. 2023 was $57.9 Mil. Avid Technology's Revenue for the
three
months ended in Sep. 2023 was $91.0 Mil. Therefore, Avid Technology's Gross Margin % for the quarter that ended in Sep. 2023 was 63.63%.
Avid Technology had a gross margin of 63.63% for the quarter that ended in Sep. 2023 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Avid Technology was 65.75%. The lowest was 57.78%. And the median was 61.20%.
Avid Technology Gross Profit Historical Data
The historical data trend for Avid Technology's Gross Profit 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.
Competitive Comparison of Avid Technology's Gross Profit
For the Software - Application subindustry, Avid Technology's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Avid Technology's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, Avid Technology's Gross Profit distribution charts can be found below:
* The bar in red indicates where Avid Technology's Gross Profit falls into.
Avid Technology Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Avid Technology's Gross Profit for the fiscal year that ended in Dec. 2022 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $261.0 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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
Avid Technology had a gross margin of 63.63% for the quarter that ended in Sep. 2023 => Durable competitive advantage
Avid Technology Gross Profit Related Terms
Thank you for viewing the detailed overview of Avid Technology's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Avid Technology (Avid Technology) Business Description
Avid Technology Inc develops and sells software and hardware for digital media production and management. Its products are used in production, film studios, cable television stations, recording studios, and other agencies. The company has operations in the U.S.; the Americas; Europe, Middle East, and Africa; and Asia-Pacific. Most of its revenue is split fairly evenly between the U.S. and EMEA. The company's products are organized into suites, including Artist Suite, which includes video editing and digital audio workstations; Media Suite, which provides newsroom management solutions; Studio Suite, which provides tools for on-air programming; and Storage Suite, which provides products for digital storage. It derives most of the revenue from video and audio products and services.
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