SolarWinds Corp (SWI)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 103,762 | 81,165 | 65,285 | 47,096 | 34,139 | 18,543 | -278,625 | -896,093 | -908,071 | -936,938 | -677,160 | -76,631 | -83,856 | -62,917 | -20,610 | 10,259 | 25,129 | 37,406 | 30,687 | 14,617 |
| 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 |
| Pretax margin | 13.05% | 10.28% | 8.38% | 6.11% | 4.47% | 2.46% | -37.53% | -122.17% | -125.31% | -130.77% | -94.27% | -10.66% | -11.67% | -8.77% | -2.86% | 1.43% | 3.51% | 4.80% | 3.68% | 1.64% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $103,762K ÷ $794,845K
= 13.05%
The pretax margin of SolarWinds Corp has exhibited significant fluctuations over the period under review. Starting at a low point of 1.64% as of March 31, 2020, the margin showed some improvement by June 30, 2020, reaching 3.68%. The company continued to enhance its pretax margin, achieving 4.80% by September 30, 2020. However, by December 31, 2020, there was a slight decrease to 3.51%.
The trend took a negative turn in the following periods, with the pretax margin dipping to 1.43% by March 31, 2021, and experiencing a significant decline to -2.86% by June 30, 2021. The margin continued to deteriorate, reaching -8.77% by September 30, 2021, and further plummeting to -11.67% by December 31, 2021.
The downward trend persisted into the following quarters, with the pretax margin hitting its lowest point at -130.77% on September 30, 2022, and remaining in negative territory until June 30, 2023. However, the company displayed a notable recovery, with the pretax margin turning positive again at 2.46% by September 30, 2023, and further improving to 4.47% by December 31, 2023.
The positive momentum continued over the subsequent quarters, with the pretax margin climbing to 6.11% by March 31, 2024, and showing a steady increase to 13.05% by December 31, 2024. This improvement suggests that SolarWinds Corp implemented strategic measures to enhance profitability and operational efficiency during the latter part of the period under review.
Peer comparison
Dec 31, 2024