TechTarget Inc (TTGT)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	4,461	41,609	949	17,068	16,875
Revenue	US$ in thousands	246,651	298,349	240,152	148,059	133,266
Net profit margin		1.81%	13.95%	0.40%	11.53%	12.66%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $4,461K ÷ $246,651K
= 1.81%

Techtarget Inc.'s net profit margin has exhibited fluctuations over the past five years. In 2023, the net profit margin decreased significantly to 1.94% from 13.99% in 2022. This decline indicates that the company's profitability relative to its revenue has weakened. The sharp decrease in net profit margin could suggest challenges in controlling costs or generating sufficient revenue to maintain historical levels of profitability.

Comparing this trend to earlier years, the net profit margin was also relatively low in 2021 at 0.36%, before experiencing a recovery in 2022. The higher net profit margins in 2022 and 2019 at 13.99% and 12.60% respectively indicate that Techtarget Inc. was more profitable in those years compared to 2023. The fluctuating nature of the net profit margin over the years may indicate the company's susceptibility to changes in market conditions and its ability to effectively manage expenses.

Additionally, the comparatively high net profit margins in 2020 and 2019 at 11.50% and 12.60% respectively suggest that Techtarget Inc. was able to maintain a healthier profitability level during those years. Overall, continual monitoring and analysis of the factors affecting the company's net profit margin are crucial for understanding its financial performance and making informed decisions for the future.