SPS Commerce Inc (SPSC)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	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	186,885	182,073	176,865	172,725
Revenue (ttm)	US$ in thousands	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	279,124	271,580	263,520	256,082
Gross profit margin		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%	66.95%	67.04%	67.12%	67.45%

December 31, 2023 calculation

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

Over the past eight quarters, SPS Commerce Inc. has maintained relatively stable gross profit margins, ranging from 65.57% to 66.09%. This consistency indicates effective management of production costs and pricing strategies. Despite minor fluctuations quarter to quarter, the overall trend suggests a strong ability to generate profit from sales after accounting for the cost of goods sold. The company's ability to sustain gross profit margins above 65% demonstrates operational efficiency and potential for sustained profitability.