Large-cap Internet Content & Information company Twilio is down -6.1% during this afternoon's trading session, while the S&P 500 moved -2.0%. With last year's reported gross margins at -32.2%, you might be wondering if today's drop is an opportunity to pick up shares of a profitable company at a discount.
Date Reported | Revenue ($) | Cost of Revenue ($) | Gross Margins (%) | YoY Growth (%) |
---|---|---|---|---|
2021-12-31 | 2,841,839,000.0 | 1,451,126,000.0 | 48.94 | -5.83 |
2020-12-31 | 1,761,776,000.0 | 846,115,000.0 | 51.97 | -3.19 |
2019-12-31 | 1,134,468,000.0 | 525,447,000.0 | 53.68 | -0.07 |
2018-12-31 | 650,067,000.0 | 300,841,000.0 | 53.72 | n/a |
Twilio's gross margins are currently in the green, but this might not be the case for long. Since its cost of revenue is growing at a rate of 125.4%, its gross margins have been shrinking -3.0% on average each year.
Date Reported | Total Revenue ($) | Operating Expenses ($) | Operating Margins (%) | YoY Growth (%) |
---|---|---|---|---|
2021-12-31 | 2,841,839,000.0 | 3,757,423,000.0 | -32.22 | -20.22 |
2020-12-31 | 1,761,776,000.0 | 2,233,877,000.0 | -26.8 | 17.79 |
2019-12-31 | 1,134,468,000.0 | 1,504,253,000.0 | -32.6 | -94.39 |
2018-12-31 | 650,067,000.0 | 759,111,000.0 | -16.77 | n/a |
The table above tells us that, on average, Twilio has not been profitable over the last four years, which should be a warning sign to prospective investors. Indeed, the company's operating margins are sinking at rate of -32.3%