The common-size income statement reveals significant fluctuations in revenue composition and profitability over the observed period. Revenue concentration shifted between service and product offerings, impacting overall gross margins and operating performance. Cost structures also exhibited variability, particularly in relation to revenue streams. Overall, the period demonstrates a dynamic business environment with notable shifts in key financial metrics.
Revenue Composition
Service revenue consistently represented the majority of net revenue, ranging from approximately 67.87% to 90.16% throughout the period. However, its proportion fluctuated, with a notable increase in the April 2020 and April 2021 quarters, peaking at 87.23% and 89.80% respectively. Product and other revenue correspondingly varied inversely, ranging from 9.84% to 32.13%. A trend towards increased service revenue dominance is observed in the later periods, culminating in approximately 89.77% and 89.90% in April 2024 and April 2025.
Cost of Revenue
The cost of revenue, as a percentage of net revenue, demonstrated considerable volatility. It ranged from a low of 14.19% to a high of 26.29%. Notably, the cost of service revenue consistently comprised the larger portion of the total cost of revenue, generally fluctuating between -13.49% and -24.86%. The cost of product and other revenue remained relatively lower, between -0.38% and -1.70%. A general upward trend in cost of revenue is apparent in the later years of the observed period.
Gross Profit
Gross profit margins exhibited substantial variation, ranging from 24.50% to 85.81%. The highest margins were observed in the April 2020 and April 2021 quarters, coinciding with the peaks in service revenue proportion. Conversely, the lowest margin occurred in July 2022, at -3.11%. A general decline in gross profit margin is observed from 2021 through 2022, followed by a recovery towards the end of the period.
Operating Expenses
Selling and marketing expenses consistently represented a significant portion of net revenue, fluctuating between 20.54% and 36.80%. Research and development expenses also constituted a substantial portion, ranging from 9.12% to 28.67%. General and administrative expenses remained relatively stable, between 5.08% and 15.86%. Amortization of other acquired intangible assets showed an increasing trend, peaking at -5.01% in July 2022. These expenses collectively impacted operating income significantly.
Operating Income
Operating income demonstrated the most significant fluctuations, ranging from -1.59% to 47.07%. The period between October 2019 and January 2021 showed a generally increasing trend, followed by a period of volatility and decline in 2022. A recovery in operating income is observed in the later periods, reaching 18.38% in January 2026.
Net Income
Net income, as a percentage of net revenue, mirrored the trends in operating income, ranging from -0.63% to 14.15%. The impact of income tax provisions and benefits was substantial, contributing to the volatility. The period from October 2024 to January 2026 shows a positive trend in net income, suggesting improved profitability.
In summary, the financial performance exhibited cyclical patterns influenced by revenue mix, cost management, and expense control. The company demonstrated an ability to achieve high gross profit margins during periods of service revenue dominance, but also experienced periods of lower profitability due to increased costs and expenses. The later periods suggest a potential stabilization and improvement in financial performance.
