Name: Operating Profit Margin

Definition: Operating profit margin focuses on profits from the company’s core business — before interest payments and taxes. It reflects how well the business manages operating costs relative to sales. Strong operating margins show efficient day-to-day operations. Shrinking margins may reveal rising overhead, pricing weakness, or declining efficiency.

Interpretation:
• In '2021', GDDY's operating profit margin was 10.0%, highlighting profit earned from core business operations. Industry average for EDP Services in '2021' stood at -62.4%.
• In '2022', GDDY's operating profit margin was 12.6%, highlighting profit earned from core business operations. The increase since '2021' reflects strengthening financial performance. Industry average for EDP Services in '2022' stood at -56.8%. Industry average increased by 5.6% compared to previous year.
• In '2023', GDDY's operating profit margin was 15.0%, highlighting profit earned from core business operations. The increase since '2022' reflects strengthening financial performance. Industry average for EDP Services in '2023' stood at -48.9%. Industry average increased by 7.9% compared to previous year.
• In '2024', GDDY's operating profit margin was 20.4%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for EDP Services in '2024' stood at -53.5%. Industry average declined by 4.7% from previous year.
Overall, GDDY's operating profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Operating Profit Margin = Operating Income / Revenue

Good Range: Often 10%-30% depending on business model.