SolarWinds Corp (SWI)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-9,109	-929,413	-51,408	158,475	18,642
Revenue	US$ in thousands	758,740	719,367	718,632	716,770	669,103
Net profit margin		-1.20%	-129.20%	-7.15%	22.11%	2.79%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $-9,109K ÷ $758,740K
= -1.20%

The net profit margin of SolarWinds Corp has shown significant fluctuation over the past five years. In 2019, the company achieved a net profit margin of 2.79%, indicating that for every dollar of revenue generated, the company retained approximately 2.79 cents as profit. This was followed by a notable increase in 2020, where the net profit margin improved to 22.11%, reflecting a substantial growth in profitability.

However, the trend reversed in 2021 as the net profit margin dropped to -7.15%, indicating that the company incurred a net loss equivalent to 7.15% of its total revenue. This negative trend persisted into 2022, with a significant decline leading to a net profit margin of -129.20%, implying a substantial loss exceeding the revenue generated during that period.

By the end of 2023, the net profit margin improved slightly but remained negative at -1.20%. This suggests that the company continued to face challenges in generating profits relative to its revenue. The negative net profit margins in recent years indicate operational inefficiencies, cost management issues, or other strategic challenges that have impacted the company's ability to generate profits. Further analysis of SolarWinds Corp's financial performance and strategic direction is recommended to identify and address the underlying causes of these fluctuations in net profit margin.