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Gross Margin % is calculated as gross profit divided by its revenue. Vonage Holdings's Gross Profit for the three months ended in Mar. 2022 was $176 Mil. Vonage Holdings's Revenue for the three months ended in Mar. 2022 was $359 Mil. Therefore, Vonage Holdings's Gross Margin % for the quarter that ended in Mar. 2022 was 49.17%.
Warning Sign:
Vonage Holdings Corp gross margin has been in long-term decline. The average rate of decline per year is -3.7%.
The historical rank and industry rank for Vonage Holdings's Gross Margin % or its related term are showing as below:
During the past 13 years, the highest Gross Margin % of Vonage Holdings was 69.17%. The lowest was 49.82%. And the median was 61.22%.
Vonage Holdings had a gross margin of 49.17% for the quarter that ended in Mar. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Vonage Holdings was -3.70% per year.
The historical data trend for Vonage 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.
Vonage Holdings Annual Data | |||||||||||||||||||||
Trend | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 59.60 | 59.29 | 57.03 | 55.64 | 50.71 |
Vonage Holdings Quarterly Data | ||||||||||||||||||||
Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | |
Gross Margin % | Get a 7-Day Free Trial | 52.90 | 51.97 | 50.36 | 47.84 | 49.17 |
For the Telecom Services subindustry, Vonage 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.
For the Telecommunication Services industry and Communication Services sector, Vonage Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vonage Holdings's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Vonage Holdings'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 ) |
= | 714.5 | / | 1409.015 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (1409.015 - 694.509) | / | 1409.015 | |
= | 50.71 % |
Vonage Holdings's Gross Margin for the quarter that ended in Mar. 2022 is calculated as
Gross Margin % (Q: Mar. 2022 ) | = | Gross Profit (Q: Mar. 2022 ) | / | Revenue (Q: Mar. 2022 ) |
= | 176.4 | / | 358.828 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (358.828 - 182.385) | / | 358.828 | |
= | 49.17 % |
* 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.
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.
Vonage Holdings (NAS:VG) 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
Vonage Holdings had a gross margin of 49.17% for the quarter that ended in Mar. 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.
Thank you for viewing the detailed overview of Vonage Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vinod Lala | officer: SVP Corporate Development | 23 MAIN STREET C/O VONAGE HOLDINGS CORP. HOLMDEL NJ 07733 |
Randy K. Rutherford | officer: Interim Chief Legal Officer | C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733 |
Rory P Read | director, officer: Chief Executive Officer | ONE DELL WAY, ROUND ROCK TX 78682 |
Joy Corso | officer: Chief Marketing Officer | C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733 |
Jeffrey A Citron | director, 10 percent owner, officer: Chairman and Chief Strategist | VONAGE HOLDING CORP. 23 MAIN STREET HOLMDEL NJ 07733 |
Ward Jr Stephen M | director | C/O CARPENTER TECHNOLOGY CORP, PO BOX 14662, READING PA 19612 |
Omar Muhammad Javaid | officer: Chief Product Officer | C/O VONAGE HOLDINGS CORP.,23 MAIN STREET HOLMDEL NJ 07733 |
Savinay M Berry | officer: EVP, Product & Engineering | C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733 |
Stephen L Lasher | officer: Chief Financial Officer | C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733 |
Joseph Anthony Bellissimo | officer: Chief Operating Officer | C/O VONAGE HOLDINGS CORP. 23 MAIN STREET HOLMDEL NJ 07733 |
Timothy S Shaughnessy | officer: Chief Financial Officer | IBM CORPORATION, NEW ORCHARD ROAD, ARMONK NY 10504 |
David T. Pearson | officer: CFO & Treasurer | C/O VONAGE HOLDINGS CORP, 23 MAIN STREET, HOLMDEL NJ 07733 |
Vonage Holdings Corp | officer: Chief Marketing Officer | 101 CRAWFORDS CORNER ROAD SUITE 2416, 4TH FLOOR, BUILDING 2 HOLMDEL NJ 07733 |
Sagi Dudai | officer: SVP Software Engineering | 23 MAIN STREET C/O VONAGE HOLDINGS CORP. HOLMDEL NJ 07733 |
Tien Tzuo | director | C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065 |
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