SolarWinds Corp (SWI)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	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	15,497	-2,314
Revenue (ttm)	US$ in thousands	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	932,525	906,211
Pretax margin		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%	1.66%	-0.26%

June 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $65,285K ÷ $779,300K
= 8.38%

The pretax margin of SolarWinds Corp has shown fluctuations over the periods analyzed. There was a significant negative pretax margin in Jun 30, 2023, Mar 31, 2023, and Dec 31, 2022, indicating that the company's expenses exceeded its revenues during these periods.

However, the company's pretax margin started to improve from Mar 31, 2023 onwards, reaching positive territory in Mar 31, 2021 and showing a steady increase in profitability until Jun 30, 2024. The pretax margin of 8.38% in Jun 30, 2024 is a positive sign of the company's ability to generate profits before accounting for taxes.

Overall, the upward trend in pretax margin reflects an improvement in the company's operational efficiency and cost management, which could contribute to its overall financial health and sustainability.