A10 Network (ATEN)

Operating 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
Operating income (ttm)	US$ in thousands	54,058	37,871	39,694	38,648	36,908	50,367	51,244	53,079	48,658	43,293	37,366	33,388	29,329	25,267	21,966	17,733	10,025	4,003	-6,336	-17,094
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
Operating profit margin		20.00%	14.81%	15.54%	15.35%	14.07%	18.30%	18.50%	18.93%	17.79%	16.25%	14.52%	13.35%	12.12%	10.83%	9.69%	7.86%	4.49%	1.82%	-2.93%	-8.05%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $54,058K ÷ $270,297K
= 20.00%

The operating profit margin of A10 Network has shown a significant improvement over the years, reflecting the company's ability to effectively manage its operating expenses relative to its revenue. The margin increased from a negative 8.05% on December 31, 2019, to a positive 20.00% on December 31, 2024.

This positive trend indicates that the company has been able to enhance its operational efficiency and profitability. The operating profit margin experienced fluctuations during the period, with some quarters showing minor declines, but overall displaying a consistent upward trajectory.

The company's ability to steadily increase its operating profit margin demonstrates its capacity to generate higher profits from its core business operations. This improvement may signify better cost control, revenue growth, strategic pricing, or a combination of these factors. A higher operating profit margin is generally considered favorable as it indicates that the company is generating more profit per dollar of revenue.

It will be important for A10 Network to continue monitoring and managing its operating expenses effectively to sustain and further improve its operating profit margin in the future. This performance metric is crucial for investors and stakeholders to assess the company's operational efficiency and profitability over time.