SolarWinds Corp (SWI)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	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
Gross profit (ttm)	US$ in thousands	713,588	700,780	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
Revenue (ttm)	US$ in thousands	794,845	789,734	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
Gross profit margin		89.78%	88.74%	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%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $713,588K ÷ $794,845K
= 89.78%

The gross profit margin of SolarWinds Corp has shown a relatively stable and healthy trend over the provided periods. Starting at 72.44% as of March 31, 2020, the gross profit margin experienced a slight decline to 68.41% by December 31, 2021. However, from there on, the trend reversed as the gross profit margin consistently increased over the subsequent periods. By December 31, 2024, the gross profit margin had reached a significant high of 89.78%.

The overall trend indicates that SolarWinds Corp has been successful in managing its cost of goods sold relative to its revenue over time, resulting in improved profitability. The increasing gross profit margin figures suggest that the company may have been able to enhance its operational efficiency, negotiate better terms with suppliers, or increase prices effectively to improve its bottom line.

It is important to note that a rising gross profit margin reflects positively on the company's ability to generate profit from its core business activities. However, ongoing monitoring and analysis of this metric, along with other financial indicators, are essential to gain a comprehensive understanding of the company's financial health and performance.