Actual Experience revenue jumped on 79.7% and EBITDA Margin surged on 338 pp from -599% to -261%
23 Jan 2020 • About Actual Experience (
$ACT) • By InTwits
Actual Experience reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- Actual Experience is a fast growth stock: FY2019 revenue growth was 79.7%, 5 year revenue CAGR was 27.8% at FY2019 ROIC -51.9%
- The company operates at negative EBITDA Margin: -260.6%
- Actual Experience motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2015-FY2019 was 0.0% while average EBITDA Margin was -561.9% for the sames years
- Actual Experience has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.8%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: £0m in FY2019, £0m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015
- The company has unprofitable business model: ROIC is -51.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Actual Experience's Revenue jumped on 79.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.9 pp from 24.5% to 27.4% in FY2019. During the last 5 years EBITDA Margin bottomed in FY2017 at -2,063% and was growing since that time.
Gross Margin surged on 49.1 pp from -8.2% to 40.9% in FY2019. During FY2015-FY2019 Gross Margin bottomed in FY2017 at -257% and was growing since that time. SG&A as a % of Revenue dropped on 207 pp from 444% to 237% in FY2019. During FY2015-FY2019 SG&A as a % of Revenue topped in FY2017 at 1,912% and was declining since that time.
Net Income margin jumped on 364 pp from -670% to -306% in FY2019. During the last 5 years Net Income margin bottomed in FY2017 at -2,028% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2019 the company had CAPEX/Revenue of 0.81%. Actual Experience showed big decline in CAPEX/Revenue of 39.1 pp from 39.9% in FY2016 to 0.81% in FY2019. For the last three years the average CAPEX/Revenue was 17.7%. During FY2015-FY2019 CAPEX as a % of Revenue topped in FY2017 at 48.7% and was declining since that time.
Return on investment
The company operates at negative ROIC (-51.9%) and ROE (-51.1%). ROIC decreased on 7.2 pp from -44.7% to -51.9% in FY2019. ROE decreased on 7.7 pp from -43.5% to -51.1% in FY2019.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and Debt / EBITDA. Debt surged while cash dropped on 26.9%.
Actual Experience has no short term refinancing risk: cash is higher than short term debt (7,327.6%).
Financial and operational results
FY ended 30 Nov -0001
Actual Experience ($ACT) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 0.700 | 0.716 | 0.365 | 1.076 | 1.934 | 79.7% |
| Gross Profit | 0.193 | -0.238 | -0.936 | -0.089 | 0.791 | |
| SG&A | 2.618 | 5.806 | 6.977 | 4.782 | 4.581 | -4.2% |
| EBITDA | -2.269 | -5.650 | -7.526 | -6.443 | -5.040 | |
| Net Income | -2.225 | -5.671 | -7.397 | -7.212 | -5.912 | |
Balance Sheet
|
|---|
| Cash | 15.275 | 9.416 | 18.210 | 10.777 | 7.877 | -26.9% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.107 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.866 | |
Cash flow
|
|---|
| Capex | 0.042 | 0.286 | 0.178 | 0.038 | 0.016 | -59.4% |
Ratios
|
|---|
| Revenue growth | 23.4% | 2.3% | -49.1% | 195.1% | 79.7% | |
| EBITDA growth | 107.9% | 149.0% | 33.2% | -14.4% | -21.8% | |
|
|---|
| Gross Margin | 27.6% | -33.3% | -256.5% | -8.2% | 40.9% | 49.1% |
| EBITDA Margin | -324.0% | -788.8% | -2,062.8% | -598.5% | -260.6% | 337.9% |
| SG&A, % of revenue | 373.7% | 810.5% | 1,912.3% | 444.2% | 236.9% | -207.3% |
| Net Income Margin | -317.7% | -791.7% | -2,027.5% | -670.0% | -305.7% | 364.3% |
| CAPEX, % of revenue | 6.0% | 39.9% | 48.7% | 3.6% | 0.8% | -2.8% |
|
|---|
| ROIC | -25.7% | -46.5% | -51.4% | -44.7% | -51.9% | -7.2% |
| ROE | -23.6% | -43.7% | -48.8% | -43.5% | -51.1% | -7.7% |
Peers in Software & Computer Services
Below we provide Actual Experience benchmarking against other companies in Software & Computer Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Micro Focus International ($MCRO) | 92.7% | 49.2% | 29.3% | 128.8% | |
| Proactis Holdings ($PHD) | 69.6% | 12.5% | 31.1% | 105.6% | |
| Zoo Digital Group ($ZOO) | 19.9% | 1.5% | 41.7% | 73.2% | |
| Sanderson Group ($SND) | 16.9% | 11.1% | 1.1% | 48.7% | |
| IMImobile ($IMO) | 12.6% | 26.1% | 23.5% | 46.3% | |
| |
|---|
| Median (16 companies) | 6.3% | 12.2% | 14.1% | 16.7% | 4.3% |
|---|
| Actual Experience ($ACT) | | 2.3% | -49.1% | 195.1% | 79.7% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Netcall ($NET) | 90.9% | 91.2% | 91.7% | 90.2% | |
| Proactis Holdings ($PHD) | 80.4% | 82.4% | 86.0% | 88.6% | |
| Sanderson Group ($SND) | 84.5% | 84.1% | 82.2% | 79.6% | |
| Dotdigital Group ($DOTD) | 89.3% | 87.4% | 86.1% | 78.9% | |
| Micro Focus International ($MCRO) | 89.0% | 89.1% | 77.2% | 73.0% | |
| |
|---|
| Median (16 companies) | 60.2% | 60.8% | 57.6% | 46.0% | 59.3% |
|---|
| Actual Experience ($ACT) | 27.6% | -33.3% | -256.5% | -8.2% | 40.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Micro Focus International ($MCRO) | 31.6% | 40.9% | 38.9% | 27.5% | |
| Dotdigital Group ($DOTD) | 32.0% | 30.4% | 31.7% | 26.9% | |
| Proactis Holdings ($PHD) | 26.4% | 23.7% | 3.7% | 25.4% | |
| Oxford Metrics ($OMG) | 28.4% | 23.1% | 19.9% | 23.5% | 21.3% |
| International Bus Mach Corp ($IBM) | 23.1% | 19.8% | 20.5% | 20.9% | 20.7% |
| |
|---|
| Median (16 companies) | 12.5% | 10.5% | 11.3% | 12.2% | 21.0% |
|---|
| Actual Experience ($ACT) | -324.0% | -788.8% | -2,062.8% | -598.5% | -260.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Csf Group ($CSFG) | 7.1% | 4.9% | 8.5% | 16.5% | |
| International Bus Mach Corp ($IBM) | 4.4% | 4.5% | 4.1% | 4.3% | 3.1% |
| Oxford Metrics ($OMG) | 2.4% | 1.8% | 5.8% | 3.9% | 1.3% |
| Unisys Corp ($USY) | 5.0% | 3.0% | 4.1% | 3.8% | |
| Proactis Holdings ($PHD) | 1.3% | 0.9% | 0.3% | 2.1% | |
| |
|---|
| Median (16 companies) | 1.0% | 1.1% | 1.2% | 0.9% | 2.2% |
|---|
| Actual Experience ($ACT) | 6.0% | 39.9% | 48.7% | 3.6% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Triad Group ($TRD) | 61.5% | 74.4% | 61.1% | 41.0% | |
| Rm ($RM.) | 289.2% | 254.7% | 73.8% | 39.0% | |
| Dotdigital Group ($DOTD) | 31.4% | 28.9% | 29.3% | 26.6% | |
| International Bus Mach Corp ($IBM) | 29.7% | 21.5% | 19.5% | 19.8% | 13.0% |
| Oxford Metrics ($OMG) | 14.6% | 16.3% | 12.7% | 16.4% | 14.7% |
| |
|---|
| Median (18 companies) | 6.2% | 9.2% | 6.4% | 6.4% | 13.0% |
|---|
| Actual Experience ($ACT) | -25.7% | -46.5% | -51.4% | -44.7% | -51.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Micro Focus International ($MCRO) | 5.3x | 2.1x | 6.6x | 4.2x | |
| Proactis Holdings ($PHD) | -0.3x | 0.1x | 1.0x | 2.5x | |
| International Bus Mach Corp ($IBM) | 1.3x | 1.7x | 1.8x | 1.7x | 3.8x |
| Zoo Digital Group ($ZOO) | | 38.3x | 3.2x | 0.9x | |
| Netcall ($NET) | -3.4x | -4.3x | -4.3x | 0.3x | |
| |
|---|
| Median (14 companies) | -0.5x | -0.8x | -0.5x | -0.1x | 1.0x |
|---|
