Twilio Inc (TWLO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -40,435 | -386,848 | -993,467 | -900,590 | -471,136 |
| Revenue | US$ in thousands | 4,458,040 | 4,153,940 | 3,826,320 | 2,841,840 | 1,761,780 |
| Operating profit margin | -0.91% | -9.31% | -25.96% | -31.69% | -26.74% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-40,435K ÷ $4,458,040K
= -0.91%
The operating profit margin of Twilio Inc. has exhibited a pattern of progressive improvement over the period from December 31, 2020, to December 31, 2024. Specifically, the margin was -26.74% at the end of 2020, indicating a significant operating loss relative to revenue. This negative margin deepened further by 2021, reaching -31.69%, suggesting increased operating losses during that year.
However, starting in 2022, there was a noticeable shift as the operating profit margin improved to -25.96%, reflecting some alleviation of operating losses. The most significant positive trend is observed in 2023, when the margin reduced sharply to -9.31%, indicating a substantial narrowing of operating losses, likely due to improved operational efficiencies or revenue growth outpacing costs. Continuing this trend into 2024, the margin further improved to -0.91%, approaching break-even territory.
Overall, the trend suggests that Twilio has been making consistent strides towards achieving operational profitability, with the margin nearing zero by the end of 2024. This progression signifies effective cost management, increased revenue contributions, or both, and highlights the company's ongoing efforts to transition from an operating loss position to a potentially sustainable profit margin in the near future.
Peer comparison
Dec 31, 2024