TransMedics Group Inc (TMDX)

Gross profit margin

		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	Dec 31, 2019
Gross profit (ttm)	US$ in thousands	237,992	217,809	185,289	154,093	126,872	104,325	81,934	65,272	51,555	37,213	28,452	21,159	19,001	20,266	16,586	16,635	15,548	14,726	16,150	13,863
Revenue (ttm)	US$ in thousands	401,090	358,759	296,919	241,623	191,824	151,077	119,133	93,459	71,752	51,439	39,089	30,262	28,221	29,942	25,162	25,639	24,069	24,183	26,458	23,604
Gross profit margin		59.34%	60.71%	62.40%	63.77%	66.14%	69.05%	68.78%	69.84%	71.85%	72.34%	72.79%	69.92%	67.33%	67.68%	65.92%	64.88%	64.60%	60.89%	61.04%	58.73%

September 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $237,992K ÷ $401,090K
= 59.34%

The gross profit margin of TransMedics Group Inc has shown a gradual decline over the past several quarters, starting at 58.73% in December 2019 and reaching its peak at 72.79% in March 2022. However, since then, the trend has been reversing, with the margin decreasing to 59.34% in September 2024. This indicates that the company's profitability from its core operations has been eroding.

A declining gross profit margin may suggest that the company is facing challenges in maintaining its cost efficiency in producing goods or services. It could also indicate pricing pressures or an increase in the cost of goods sold, impacting the company's profitability. TransMedics Group Inc should closely analyze its cost structure, pricing strategies, and operational efficiency to address these declining margins and ensure sustainable profitability in the future.