Twilio Inc (TWLO)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	2,229,090	1,962,790	1,764,910	1,314,370	876,668
Revenue	US$ in thousands	4,458,040	4,153,940	3,826,320	2,841,840	1,761,780
Gross profit margin		50.00%	47.25%	46.13%	46.25%	49.76%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,229,090K ÷ $4,458,040K
= 50.00%

The gross profit margin of Twilio Inc over the specified period exhibits a relatively stable trend with slight fluctuations. At the end of 2020, the gross profit margin stood at 49.76%, indicating that nearly half of the company's revenue was retained after accounting for the cost of goods sold. In 2021, there was a decline to 46.25%, suggesting a slight compression in profitability, which could be attributable to increased cost pressures or changes in product mix. This marginal decrease persisted into 2022, with the margin marginally declining further to 46.13%, reflecting continued challenges or competitive factors influencing gross profitability.

However, there was a notable improvement by 2023, when the gross profit margin increased to 47.25%, indicating some recovery or enhancements in cost management or revenue quality. The upward trend continued into 2024, with the margin reaching 50.00%, surpassing prior levels and indicating an improvement in Twilio’s gross profitability. This sustained rise suggests effective efficiencies, favorable revenue composition, or better control over costs related to gross profit generation.

Overall, the trend from 2020 to 2024 demonstrates a recovery and enhancement of Twilio’s gross profit margin, culminating in the highest margin observed in 2024. This trajectory underscores an overarching positive shift in the company's ability to retain a larger proportion of revenue as gross profit over the period.