Gross Margin % is calculated as gross profit divided by its revenue. Twilio's Gross Profit for the
three
months ended in Dec. 2023 was $531 Mil. Twilio's Revenue for the
three
months ended in Dec. 2023 was $1,076 Mil. Therefore, Twilio's Gross Margin % for the quarter that ended in Dec. 2023 was 49.37%.
Warning Sign:
Twilio Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.
The historical rank and industry rank for Twilio's Gross Margin % or its related term are showing as below:
TWLO'
s Gross Margin % Range Over the Past 10 Years
Min: 47.4 Med: 53.53 Max: 56.54
Current: 49.21
During the past 11 years, the highestGross Margin % of Twilio was 56.54%. The lowest was 47.40%. And the median was 53.53%.
TWLO's Gross Margin % is ranked worse than 62.26% of 522
companies
in the Interactive Media industry
Industry Median: 60.98
vs TWLO: 49.21
Twilio had a gross margin of 49.37% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Twilio was -2.50% per year.
Twilio Gross Margin % Historical Data
The historical data trend for Twilio'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.
For the Internet Content & Information subindustry, Twilio'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.
Twilio's Gross Margin % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Twilio's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Twilio's Gross Margin % falls into.
* 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.
Twilio (NYSE:TWLO) 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
Twilio had a gross margin of 49.37% for the quarter that ended in Dec. 2023 => 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.
Twilio Gross Margin % Related Terms
Thank you for viewing the detailed overview of Twilio's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Twilio is a cloud-based communications platform-as-a-service company offering communication building blocks that allow for a fully customized customer engagement experience spanning voice, video, chat, and SMS messaging. It does this through various application programming interfaces and prebuilt solution applications aimed at improving customer engagement. The company leverages its Super Network, a global network of carrier relationships, to facilitate high-speed, cost-effective communication.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TWLO has been successfully added to your 