SolarWinds Corp (SWI)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	713,588	671,735	623,384	491,616	505,327
Revenue	US$ in thousands	796,895	758,740	719,367	718,632	716,770
Gross profit margin		89.55%	88.53%	86.66%	68.41%	70.50%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $713,588K ÷ $796,895K
= 89.55%

The gross profit margin of SolarWinds Corp has shown a generally positive trend over the years, indicating the company's ability to effectively manage its production costs and generate profits from its core operations. Starting at 70.50% as of December 31, 2020, the margin slightly decreased to 68.41% by December 31, 2021. However, there was a significant improvement in profitability with the margin increasing to 86.66% by December 31, 2022, and further rising to 88.53% by December 31, 2023. The most recent data point, as of December 31, 2024, shows an even higher gross profit margin of 89.55%. This upward trend suggests that SolarWinds Corp has been able to enhance its operational efficiency and optimize its revenue generation processes, potentially signaling a stronger financial performance and profitability in recent years.