RDDTNEUTRAL

RDDT Gross Margin Analysis

91.5%

Higher than 100% of Communication Services sector peers

Updated 72h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services.

Sector Performance

100th percentile

RDDT

91.5%

Sector Median

54.0%

Sector Avg

58.6%

📊

Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services.

RDDT’s current gross margin of 91.5% means it retains $0.915 of every dollar in sales after covering those costs. This figure is far above the sector median of 54.0% for Communication Services, placing the company in the 100th percentile among its peers. No trend data is available because the year-over-year change and quarter-over-quarter change are both listed as N

Frequently Asked Questions

What does the Gross Margin tell investors about RDDT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does RDDT's Gross Margin compare to its sector?

RDDT's Gross Margin of 91.5% compares to a Communication Services sector median of 54.0%, placing it in the 100th percentile.

Who are RDDT's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), SNAP (56.5%), DASH (50.6%), TWLO (48.6%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.