SolarWinds Corp (SWI)

Operating 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
Operating income (ttm)	US$ in thousands	208,419	191,439	178,280	161,439	150,373	135,040	-165,964	-795,187	-819,579	-857,977	-599,320	-10,288	-32,871	-20,583	4,234	46,921	85,746	69,137	82,561	77,750
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
Operating profit margin		26.22%	24.24%	22.88%	20.94%	19.70%	17.94%	-22.35%	-108.42%	-113.10%	-119.75%	-83.43%	-1.43%	-4.57%	-2.87%	0.59%	6.55%	11.96%	8.88%	9.89%	8.73%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $208,419K ÷ $794,845K
= 26.22%

The operating profit margin of SolarWinds Corp has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The company's operating profit margin started at 8.73% in March 2020, showing a slight increase to 9.89% by June 2020. However, it dipped to 6.55% in March 2021 and further declined to 0.59% in June 2021.

Subsequently, the operating profit margin turned negative from September 2021, hitting its lowest point at -119.75% by September 30, 2022. This negative trend continued until March 31, 2023, reaching -108.42%. From the second quarter of 2023, the operating profit margin started to show signs of improvement, turning positive at 17.94% by September 30, 2023, and further increasing to 26.22% by December 31, 2024.

The significant fluctuations in the operating profit margin reflect the company's challenges and efforts in maintaining profitability. It is essential to monitor this metric closely to assess SolarWinds Corp's operational efficiency and financial performance.