Zapata Computing Holdings (Zapata Computing Holdings) Gross Margin % : 22.38% (As of Dec. 2023)

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What is Zapata Computing Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zapata Computing Holdings's Gross Profit for the six months ended in Dec. 2023 was $0.61 Mil. Zapata Computing Holdings's Revenue for the six months ended in Dec. 2023 was $2.74 Mil. Therefore, Zapata Computing Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 22.38%.

The historical rank and industry rank for Zapata Computing Holdings's Gross Margin % or its related term are showing as below:

ZPTA' s Gross Margin % Range Over the Past 10 Years
Min: -20.91 Med: 19.37 Max: 31.57
Current: 19.37

During the past 3 years, the highest Gross Margin % of Zapata Computing Holdings was 31.57%. The lowest was -20.91%. And the median was 19.37%.

ZPTA's Gross Margin % is ranked worse than
82.88% of 2634 companies
in the Software industry
Industry Median: 41.825 vs ZPTA: 19.37

Zapata Computing Holdings had a gross margin of 22.38% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Zapata Computing Holdings was 0.00% per year.

Zapata Computing Holdings Gross Margin % Historical Data

The historical data trend for Zapata Computing Holdings'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.

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Zapata Computing Holdings Gross Margin % Chart

Zapata Computing Holdings Annual Data

Trend

Dec21

Dec22

Dec23

Gross Margin %

-20.91

31.57

19.37

Zapata Computing Holdings Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	-	39.80	24.64	16.58	22.38

Competitive Comparison of Zapata Computing Holdings's Gross Margin %

For the Software - Infrastructure subindustry, Zapata Computing Holdings'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.

Zapata Computing Holdings's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Zapata Computing Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zapata Computing Holdings's Gross Margin % falls into.

Zapata Computing Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Zapata Computing Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1.1	/	5.683
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5.683 - 4.582)	/	5.683
	=	19.37 %

Zapata Computing Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	0.6	/	2.739
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.739 - 2.126)	/	2.739
	=	22.38 %

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.

Zapata Computing Holdings (NAS:ZPTA) 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

Zapata Computing Holdings had a gross margin of 22.38% for the quarter that ended in Dec. 2023 => Competition eroding margins

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.

Zapata Computing Holdings Gross Margin % Related Terms

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Zapata Computing Holdings (Zapata Computing Holdings) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

100 Federal Street, Floor 20, Boston, MA, USA, 02110

Website

https://www.zapata.ai

Zapata Computing Holdings Inc is an Industrial Generative AI software company that develops generative AI applications and provides accompanying services to solve complex industrial problems. Its computational approaches leverage the statistical advantages of math based on quantum physics. Its primary target customers are enterprise organizations. It offers subscription-based solutions that combine software and services to develop custom Industrial Generative AI applications designed to resolve its enterprise customers' specific problems.

Zapata Computing Holdings (Zapata Computing Holdings) Headlines

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