Table:
|  | Years Ended December 31, |  | Change |  |
| --- | --- | --- | --- | --- |
|  | 2019 | 2018 | $ | % |
|  |  | (dollars in thousands) |  |  |
| Cost of revenues | $22,843 | $27,154 | $(4,311) | (16)% |
| Gross profit | 26,193 | 31,477 | (6,284) | (17) |
| Gross margin | 53% | 54% |  |  |
Paragraphs:
Cost of Revenues and Gross Margin
Cost of revenues in 2019 decreased by $4.3 million, or 16%, as compared to 2018. The decrease was primarily driven by a reduction in the number of global services and cloud infrastructure personnel, which led to a decrease of $2.2 million in compensation and benefits expense, including stock-based compensation expense, as compared to 2018. This reduction in headcount also contributed to a decrease in allocated facilities and information technology costs of $0.5 million in 2019. We also experienced a decrease of $0.9 million in hosting costs in 2019, due to a decline in the usage of our hosted platform as compared to 2018. Additionally, depreciation decreased $0.5 million in 2019, due to the nature and timing of capital expenditures and internal projects as compared to 2018.
Our gross margin decreased to 53% during 2019, as compared to 54% during 2018. This was primarily due to our revenues, net declining during the year at a slightly faster rate than the corresponding decrease in costs.
Question:
What is the company's average cost of revenues in 2018 and 2019?