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Revenue is up 50%, but profit margin is down a bit, 76.6% in 2020 versus 77.9% in 2019. Plus, the upper range of their expected 2021 revenue is ~$593 million, w

Revenue is up 50%, but profit margin is down a bit, 76.6% in 2020 versus 77.9% in 2019. Plus, the upper range of their expected 2021 revenue is ~$593 million, which would be about 40% revenue growth if I did that math right ($431 * 1.38 = $594). So less growth, decreasing margins = sell I guess?

noncoml 6y ago
Genuine question, why are you looking at the gross profit margin? .
- cholmon 6y ago
  I figure more margin is better than less, and it decreased from 2019 to 2020. Is that not a valid way to look at gross profit margin?
  - noncoml 6y ago
    It definitely is. I was just asking why are you focusing on gross profit margin and not opex or net margin.