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Vonage Holdings Gross Margin %

: 53.54% (As of Dec. 2020)
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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 Dec. 2020 was $173 Mil. Vonage Holdings's Revenue for the three months ended in Dec. 2020 was $323 Mil. Therefore, Vonage Holdings's Gross Margin % for the quarter that ended in Dec. 2020 was 53.54%.

Warning Sign:

Vonage Holdings Corp gross margin has been in long term decline. The average rate of decline per year is -3.4%.


NAS:VG' s Gross Margin % Range Over the Past 10 Years
Min: 55.64   Med: 63.85   Max: 69.17
Current: 55.64

55.64
69.17

During the past 13 years, the highest Gross Margin % of Vonage Holdings was 69.17%. The lowest was 55.64%. And the median was 63.85%.

NAS:VG's Gross Margin % is ranked higher than
60% of the 374 Companies
in the Telecommunication Services industry.

( Industry Median: 49.47 vs. NAS:VG: 55.64 )

Vonage Holdings had a gross margin of 53.54% for the quarter that ended in Dec. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vonage Holdings was -3.40% per year.


Vonage Holdings Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Vonage Holdings Annual Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 62.84 59.60 59.29 57.03 55.64

Vonage Holdings Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 56.21 57.16 56.85 55.19 53.54

Competitive Comparison
* 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.


Vonage Holdings Gross Margin % Distribution

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



Vonage Holdings Gross Margin % Calculation

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. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=694.4 / 1247.934
=(Revenue - Cost of Goods Sold) / Revenue
=(1247.934 - 553.523) / 1247.934
=55.64 %

Vonage Holdings's Gross Margin for the quarter that ended in Dec. 2020 is calculated as


Gross Margin % (Q: Dec. 2020 )=Gross Profit (Q: Dec. 2020 ) / Revenue (Q: Dec. 2020 )
=173.1 / 323.295
=(Revenue - Cost of Goods Sold) / Revenue
=(323.295 - 150.216) / 323.295
=53.54 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 53.54% for the quarter that ended in Dec. 2020 => 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.


Vonage Holdings Gross Margin % Related Terms


Vonage Holdings Gross Margin % Headlines

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