SPS Commerce Inc (SPSC)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	354,841	297,810	253,598	212,794	186,885
Revenue	US$ in thousands	536,910	450,875	385,276	312,630	279,124
Gross profit margin		66.09%	66.05%	65.82%	68.07%	66.95%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $354,841K ÷ $536,910K
= 66.09%

The gross profit margin of SPS Commerce Inc. has remained relatively stable over the past five years, with figures ranging from 65.82% to 68.07%. In 2023, the gross profit margin stood at 66.09%, showing a slight increase compared to the previous year. This indicator reflects the company's ability to generate profit from its core operations after deducting direct costs associated with goods or services sold. SPS Commerce Inc. has maintained a healthy gross profit margin, suggesting efficient cost management and pricing strategies.