SolarWinds Corp (SWI)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	671,735	623,384	491,616	505,327	470,969
Revenue	US$ in thousands	758,740	719,367	718,632	716,770	669,103
Gross profit margin		88.53%	86.66%	68.41%	70.50%	70.39%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $671,735K ÷ $758,740K
= 88.53%

The gross profit margin of SolarWinds Corp has shown a generally positive trend over the past five years. In 2023, the company achieved a robust gross profit margin of 88.53%, reflecting a significant increase from the previous year's margin of 86.66%. This improvement indicates the company's ability to effectively manage its production costs and generate higher profits from its core operations.

Comparing the current margin to earlier years, we observe a notable growth trajectory. In 2021 and 2022, the company experienced a substantial jump in its gross profit margin from the levels seen in 2020 and 2019. This upward trend signifies enhanced efficiency in cost control and potential economies of scale achieved by SolarWinds Corp during this period.

Overall, SolarWinds Corp's consistent enhancement of its gross profit margin highlights its strong performance in optimizing production processes and maximizing profitability. This trend bodes well for the company's financial health and operational effectiveness in generating returns from its revenue.