Twilio Inc (TWLO)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands -88,613 -996,729 -1,243,630 -960,929 -504,426
Revenue US$ in thousands 4,458,040 4,153,940 3,826,320 2,841,840 1,761,780
Pretax margin -1.99% -23.99% -32.50% -33.81% -28.63%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-88,613K ÷ $4,458,040K
= -1.99%

The pretax margin of Twilio Inc. has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. Initially, the company reported a significantly negative pretax margin of -28.63% in 2020. This indicator further deteriorated in 2021, reaching -33.81%, and remained relatively stable in 2022 at -32.50%. However, by December 31, 2023, the pretax margin showed some improvement, decreasing in negativity to -23.99%. The most recent data for December 31, 2024, indicates a substantial improvement, with the pretax margin narrowing to -1.99%. Overall, the trend reflects a gradual reduction in the negative pretax margin, suggesting progress towards less detrimental pre-tax profitability, though the company still operates with a negative pretax margin as of the latest reporting date.