KLR - Kaleyra: Q4 Margin Questions Are Explainable 2021 Is Set Up Extremely Well
- Kaleyra reported earnings on Feb 16th that showed strong revenue generation and that a foothold in the Americas has been cemented, however, they missed the mark on margins.
- Long term, the company's margins will improve, however, they may never match USA-based Twilio due to geographic and product mix.
- The company looks well positioned in 2021 with voice making a strong comeback and hopefully a wide margin expansion to come.
- Valuation, even with the rally from my initial recommendation is dirt cheap and I still view fair value above $30.
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Kaleyra: Q4 Margin Questions Are Explainable, 2021 Is Set Up Extremely Well