A10 Network (ATEN)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 66,217 49,719 50,156 43,888 41,084 51,351 50,141 52,672 47,926 42,802 36,302 31,654 28,326 24,941 21,967 19,148 11,442 5,195 -4,618 -16,412
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
Pretax margin 24.50% 19.45% 19.64% 17.44% 15.66% 18.65% 18.10% 18.78% 17.52% 16.07% 14.11% 12.66% 11.70% 10.69% 9.69% 8.49% 5.13% 2.37% -2.14% -7.73%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $66,217K ÷ $270,297K
= 24.50%

The pretax margin of A10 Network has shown significant improvement over the years, indicating better cost management and operational efficiency. Starting from a negative figure of -7.73% in December 2019, the company managed to turn around its performance to achieve a positive pretax margin of 24.50% by the end of December 2024. This consistent growth reflects the company's ability to generate higher earnings before accounting for taxes relative to its revenue. The positive trend in pretax margin suggests that A10 Network has been successful in controlling its operating expenses and increasing profitability, which could be attributed to effective strategic decisions and operational enhancements. Investors may view this improvement positively as it indicates that the company is becoming more profitable over time. However, a slight dip in pretax margin in the most recent quarter ending September 2024 to 19.45% may warrant further examination to understand the factors influencing this change.