SolarWinds Corp (SWI)

Gross profit margin

		Jun 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	Sep 30, 2019
Gross profit (ttm)	US$ in thousands	689,990	680,064	671,735	660,887	651,870	645,720	623,384	587,370	551,605	515,641	491,616	492,467	500,918	501,337	505,327	557,208	601,021	645,030	677,071	654,094
Revenue (ttm)	US$ in thousands	779,300	771,084	763,326	752,646	742,451	733,451	724,655	716,477	718,352	719,106	718,632	717,464	721,011	716,888	716,770	778,716	834,388	890,471	932,525	906,211
Gross profit margin		88.54%	88.20%	88.00%	87.81%	87.80%	88.04%	86.02%	81.98%	76.79%	71.71%	68.41%	68.64%	69.47%	69.93%	70.50%	71.55%	72.03%	72.44%	72.61%	72.18%

June 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $689,990K ÷ $779,300K
= 88.54%

SolarWinds Corp has shown a generally stable trend in its gross profit margin over the past few quarters. The company's gross profit margin has consistently remained above 80%, indicating strong profitability and efficient cost management. There was a slight decrease in the gross profit margin in the most recent quarter, dropping from 88.20% to 88.54%. However, overall, the company has maintained a high level of gross profit margin, with a peak of 88.54% in the latest quarter.

The significant improvement in the gross profit margin from 2019 to 2022, where it increased from 72.18% to 76.79%, reflects the company's ability to enhance its operational efficiency and generate more profit from its core business activities. However, the gross profit margin started to decline from the second half of 2022, reaching a low of 68.41% in the first quarter of 2022. Since then, the margin has shown a gradual recovery and stabilization around the 88% range.

In conclusion, SolarWinds Corp has demonstrated a strong gross profit margin performance, reflecting effective cost control and revenue generation. Monitoring future trends in the gross profit margin will be crucial to understanding the company's profitability and operational efficiency.