A10 Network (ATEN)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Net income (ttm)	US$ in thousands	58,581	46,749	45,738	39,970	40,083	45,727	44,517	46,908	39,606	102,379	98,579	94,887	92,000	23,578	20,770	17,816	10,026	3,735	-5,844	-17,819
Revenue (ttm)	US$ in thousands	270,297	255,634	255,392	251,700	262,318	275,268	276,946	280,441	273,478	266,347	257,358	250,042	242,026	233,274	226,605	225,526	223,187	219,382	216,035	212,406
Net profit margin		21.67%	18.29%	17.91%	15.88%	15.28%	16.61%	16.07%	16.73%	14.48%	38.44%	38.30%	37.95%	38.01%	10.11%	9.17%	7.90%	4.49%	1.70%	-2.71%	-8.39%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $58,581K ÷ $270,297K
= 21.67%

Net profit margin is a key financial ratio that measures the percentage of net income a company generates from its total revenue.

Looking at the data provided for A10 Network's net profit margin over multiple quarters, we observe fluctuations in the margin over time. The company experienced negative net profit margins in the earlier periods (2019 and early 2020), showing that expenses were surpassing the revenue, resulting in losses.

However, as we move through the quarters, we see a significant improvement in the net profit margin, turning positive in mid-2020 and continuing to increase through 2021 and 2022. The company was able to effectively control its costs and improve its operational efficiency, leading to higher profitability.

The peak net profit margins were recorded in late 2021 and early 2022, reaching around 38%, indicating strong financial performance during this period. Subsequently, there was a slight decline in the margin, but it remained at a healthy level above 15% in the following quarters.

Overall, the trend in A10 Network's net profit margin shows a notable improvement from negative values to double-digit percentages, indicating better profitability and financial health of the company over the analyzed period.