Gross Margin % is calculated as gross profit divided by its revenue. Vimeo's Gross Profit for the
three
months ended in Dec. 2023 was $82.3 Mil. Vimeo's Revenue for the
three
months ended in Dec. 2023 was $105.5 Mil. Therefore, Vimeo's Gross Margin % for the quarter that ended in Dec. 2023 was 77.96%.
The historical rank and industry rank for Vimeo's Gross Margin % or its related term are showing as below:
VMEO'
s Gross Margin % Range Over the Past 10 Years
Min: 60.38 Med: 73.82 Max: 78.05
Current: 78.05
During the past 5 years, the highestGross Margin % of Vimeo was 78.05%. The lowest was 60.38%. And the median was 73.82%.
VMEO's Gross Margin % is ranked better than 85.46% of 2628
companies
in the Software industry
Industry Median: 41.71
vs VMEO: 78.05
Vimeo had a gross margin of 77.96% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Vimeo was 0.00% per year.
Vimeo Gross Margin % Historical Data
The historical data trend for Vimeo'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.
For the Software - Application subindustry, Vimeo'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.
Vimeo's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Vimeo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vimeo's Gross Margin % falls into.
* 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.
Vimeo (NAS:VMEO) 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
Vimeo had a gross margin of 77.96% 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.
Vimeo Gross Margin % Related Terms
Thank you for viewing the detailed overview of Vimeo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vimeo Inc is the all-in-one video software solution, providing the full breadth of video tools through a software-as-a-service model. The company's comprehensive and cloud-based tools empower its users to create, collaborate and communicate with video on a single, turnkey platform. The company derives its revenue from SaaS subscription fees paid by customers for subscription plans.
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