SPS Commerce Inc (SPSC)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	427,051	407,654	385,732	370,026	354,841	339,393	325,134	310,910	297,810	284,454	272,117	263,278	253,598	242,864	233,832	222,270	212,794	205,231	198,384	191,966
Revenue (ttm)	US$ in thousands	637,765	611,823	583,798	560,618	536,910	513,963	492,788	471,550	450,875	431,613	415,014	400,375	385,276	365,828	347,498	328,532	312,630	302,055	293,426	286,382
Gross profit margin		66.96%	66.63%	66.07%	66.00%	66.09%	66.03%	65.98%	65.93%	66.05%	65.90%	65.57%	65.76%	65.82%	66.39%	67.29%	67.66%	68.07%	67.94%	67.61%	67.03%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $427,051K ÷ $637,765K
= 66.96%

The gross profit margin of SPS Commerce Inc has shown fluctuations over the years, with a general trend of stability and slight variations.

The company's gross profit margin has ranged from a low of 65.57% on June 30, 2022, to a high of 68.07% on December 31, 2020. Overall, the gross profit margin has stayed within a relatively narrow range, with the latest reported figure as of December 31, 2024, at 66.96%.

This stability in the gross profit margin indicates that SPS Commerce Inc has been able to effectively manage its cost of goods sold relative to its revenue, maintaining a healthy level of profitability. However, the slight decline in the margin from the high point in December 2020 suggests that the company may have faced some challenges in controlling its cost structure or managing pricing dynamics.

Monitoring the gross profit margin is important for investors and stakeholders as it provides insight into the company's ability to generate profits from its core business activities. Overall, SPS Commerce Inc's gross profit margin has been relatively consistent, signaling a level of operational efficiency and profitability in its business operations.