SolarWinds Corp (SWI)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	111,903	-9,109	-929,413	-51,408	158,475
Revenue	US$ in thousands	796,895	758,740	719,367	718,632	716,770
Net profit margin		14.04%	-1.20%	-129.20%	-7.15%	22.11%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $111,903K ÷ $796,895K
= 14.04%

Based on the provided data, SolarWinds Corp's net profit margin has experienced significant fluctuations over the past five years. In December 2020, the company reported a healthy net profit margin of 22.11%, indicating that it was able to generate a profit of approximately 22.11 cents for every dollar of revenue.

However, in December 2021, the net profit margin turned negative at -7.15%, suggesting that the company experienced a loss equivalent to 7.15 cents for every dollar of revenue during that period. The trend worsened in December 2022, with a sharp decline to -129.20%, indicating substantial losses exceeding revenue.

By December 2023, the net profit margin improved slightly to -1.20%, still reflecting a loss but at a reduced rate compared to the previous year. Finally, in December 2024, the company managed to reverse the negative trend, achieving a net profit margin of 14.04%, signaling a return to profitability and indicating an ability to generate a profit of 14.04 cents for every dollar of revenue.

Overall, the performance of SolarWinds Corp's net profit margin has shown volatility and inconsistency over the past five years, with significant fluctuations from profitability to losses and then back to profitability. It is essential for the company to focus on stabilizing its financial performance and profitability to ensure long-term sustainability and growth.