ironSource (ironSource) Gross Margin % : 77.80% (As of Jun. 2022)

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What is ironSource Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ironSource's Gross Profit for the three months ended in Jun. 2022 was $142.2 Mil. ironSource's Revenue for the three months ended in Jun. 2022 was $182.8 Mil. Therefore, ironSource's Gross Margin % for the quarter that ended in Jun. 2022 was 77.80%.

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

IS' s Gross Margin % Range Over the Past 10 Years
Min: 80.87 Med: 82.56 Max: 83.88
Current: 81.08

During the past 3 years, the highest Gross Margin % of ironSource was 83.88%. The lowest was 80.87%. And the median was 82.56%.

IS's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.74 vs IS: 81.08

ironSource had a gross margin of 77.80% for the quarter that ended in Jun. 2022 => Durable competitive advantage

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

ironSource Gross Margin % Historical Data

The historical data trend for ironSource'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.

* Premium members only.

ironSource Gross Margin % Chart

ironSource Annual Data

Trend

Dec19

Dec20

Dec21

Gross Margin %

80.87

82.56

83.88

ironSource Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
Gross Margin %	Get a 7-Day Free Trial					83.14	84.51	84.48	78.86	77.80

Competitive Comparison of ironSource's Gross Margin %

For the Software - Application subindustry, ironSource'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.

ironSource's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where ironSource's Gross Margin % falls into.

ironSource Gross Margin % Calculation

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

ironSource's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )	=	Gross Profit (A: Dec. 2021 )	/	Revenue (A: Dec. 2021 )
	=	464.2	/	553.466
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(553.466 - 89.223)	/	553.466
	=	83.88 %

ironSource's Gross Margin for the quarter that ended in Jun. 2022 is calculated as

Gross Margin % (Q: Jun. 2022 )	=	Gross Profit (Q: Jun. 2022 )	/	Revenue (Q: Jun. 2022 )
	=	142.2	/	182.785
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(182.785 - 40.581)	/	182.785
	=	77.80 %

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.

ironSource (NYSE:IS) 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

ironSource had a gross margin of 77.80% for the quarter that ended in Jun. 2022 => Durable competitive advantage

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.

ironSource Gross Margin % Related Terms

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ironSource (ironSource) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ironSource Ltd (NYSE:IS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

121 Menachem Begin Street, Azrieli Sarona Tower, Tel Aviv, ISR, 6701203

Website

https://www.is.com

ironSource Ltd is a business platform that enables mobile content creators to prosper within the app economy. App developers use ironSource's platform to turn their apps into successful, scalable businesses. The ironSource platform also empowers telecom operators to create a richer device experiences for their customers.