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KonaTel (KonaTel) Gross Margin % : 20.01% (As of Mar. 2024)


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What is KonaTel Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KonaTel's Gross Profit for the three months ended in Mar. 2024 was $1.13 Mil. KonaTel's Revenue for the three months ended in Mar. 2024 was $5.64 Mil. Therefore, KonaTel's Gross Margin % for the quarter that ended in Mar. 2024 was 20.01%.

Warning Sign:

KonaTel Inc gross margin has been in long-term decline. The average rate of decline per year is -2.3%.


The historical rank and industry rank for KonaTel's Gross Margin % or its related term are showing as below:

KTEL' s Gross Margin % Range Over the Past 10 Years
Min: 17.65   Med: 28.1   Max: 44.64
Current: 17.65


During the past 13 years, the highest Gross Margin % of KonaTel was 44.64%. The lowest was 17.65%. And the median was 28.10%.

KTEL's Gross Margin % is ranked worse than
89.74% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.16 vs KTEL: 17.65

KonaTel had a gross margin of 20.01% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for KonaTel was -2.30% per year.


KonaTel Gross Margin % Historical Data

The historical data trend for KonaTel'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.

KonaTel Gross Margin % Chart

KonaTel Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.28 37.77 44.64 24.92 18.51

KonaTel Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.85 16.82 26.96 6.81 20.01

Competitive Comparison of KonaTel's Gross Margin %

For the Telecom Services subindustry, KonaTel'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.


KonaTel's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, KonaTel's Gross Margin % distribution charts can be found below:

* The bar in red indicates where KonaTel's Gross Margin % falls into.



KonaTel Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

KonaTel's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=3.4 / 18.224
=(Revenue - Cost of Goods Sold) / Revenue
=(18.224 - 14.85) / 18.224
=18.51 %

KonaTel's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=1.1 / 5.636
=(Revenue - Cost of Goods Sold) / Revenue
=(5.636 - 4.508) / 5.636
=20.01 %

* 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.

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.


KonaTel  (OTCPK:KTEL) 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

KonaTel had a gross margin of 20.01% for the quarter that ended in Mar. 2024 => Competition eroding margins


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.


KonaTel Gross Margin % Related Terms

Thank you for viewing the detailed overview of KonaTel's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


KonaTel (KonaTel) Business Description

Traded in Other Exchanges
N/A
Address
500 N. Central Expressway, Suite 202, Plano, TX, USA, 75074
KonaTel Inc is a reseller of U.S. wireless network service. The company operates in two segments: Hosted Services and Mobile Services. The Hosted Services segment includes a suite of hosted CPaaS services, including SIP/VoIP services, SMS/MMS, BOT integration, NLP, ML, mobile numbers, toll-free numbers, DID landline numbers, SMS to Email, Database Dip, SD-WAN, wireless data services, voice termination, and numerous API driven services. The Mobile Services include retail and wholesale cellular voice/text/data services and mobile data (IoT). It generates maximum revenue from the Mobile Services segment.
Executives
Jason N. Welch officer: President of IM Telecom (Sub.) 135 LIBERTYVILLE ROAD, SUSSEX NJ 07461
Todd Murcer officer: EVP Finance and Secretary 9248 RAEFORD DRIVE, DALLAS TX 75243
Charles David Griffin officer: COO, President 2702 BLACK CANYON WAY, CASTLE ROCK CO 80109
David S Mcewen director, 10 percent owner, officer: Chairman, President and CEO 500 N. CENTRAL EXPRESSWAY, SUITE 202, PLANO TX 75074
Matthew Hugh Atkinson 10 percent owner, officer: Secretary P. O. BOX 947, CROSSLAKE MN 56442
Robert Matthew Beaty director 7960 S. FILLMORE CT., CENTENNIAL CO 80122
Kenneth Paul Lapier officer: Vice President, Secretary 8205 MUNICH DRIVE, ROWLETT TX 75089
Joshua Ploude 10 percent owner 728 CYPRESS AVE., HERMOSA BEACH CA 90254
Jeffrey Pearl director 35 WEST MAIN #6013, FRISCO CO 80443
Mark S Savage director, 10 percent owner, officer: President, CEO, Treasurer, CFO 13911 RIDGEDALE DRIVE, SUITE 375, MINNETONKA MN 55305
Terry Wain Addington director 376 S. SANDERLIN MOUNTAIN DR., 11774 BIG CANOE, JASPER GA 30143
Dennis Miller director 18930 JASMINE ROAD, MANKATO MN 56001
Brian R. Riffle officer: CFO 241 BENTWOOD AVENUE, JOHNSTOWN PA 15904
Daniel E. Ryweck director 712 VISTA BLVD #305, WACONIA MN 55387
Brunson Chandler & Jones Pllc 10 percent owner 175 SOUTH MAIN ST., SUITE 1500, SALT LAKE CITY UT 84111

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