Vonage Holdings (Vonage Holdings) Gross Margin % : 49.17% (As of Mar. 2022)

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What is Vonage Holdings Gross Margin %?

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:

VG' s Gross Margin % Range Over the Past 10 Years
Min: 49.82 Med: 61.22 Max: 69.17
Current: 49.82

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%.

VG's Gross Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 49.06 vs VG: 49.82

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.

Vonage Holdings Gross Margin % Historical Data

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.

* Premium members only.

Vonage Holdings Gross Margin % Chart

Vonage Holdings Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Gross Margin %

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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

Competitive Comparison of Vonage Holdings's Gross Margin %

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.

Vonage Holdings's Gross Margin % Distribution in the Telecommunication Services Industry

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.

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. 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 %

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.

Vonage Holdings Gross Margin % Related Terms

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Vonage Holdings (Vonage Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Vonage Holdings Corp (NAS:VG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

23 Main Street, Holmdel, NJ, USA, 07733

Website

https://www.vonage.com

Vonage Holdings Corp is a North American technology company that provides cloud communication services to businesses and consumers. For businesses, the company provides unified communications (as a service), which consists of integrated voice, text, video, data, and mobile applications over Voice over Internet Protocol network. Its reportable operating segments include Vonage Communications Platform and Consumer. For consumer service customers, there is a home telephone replacement service. This can include services such as voicemail, call waiting, and call forwarding. This service is delivered over the Internet. The company generates most of its revenue within the United States.

Executives

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