Skkynet Cloud Systems Inc revenue increased on 9.7% and EBITDA Margin jumped on 22.0 pp from -56.1% to -34.1%
02/13/2019 • About Skkynet Cloud Systems Inc (
$SKKY) • By InTwits
Skkynet Cloud Systems Inc reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Skkynet Cloud Systems Inc is a growth stock: FY2018 revenue growth was 9.7%, 5 year revenue CAGR was 13.3% at FY2018 ROIC -81.7%
- The company operates at negative EBITDA Margin: -34.1%
- Skkynet Cloud Systems Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -79.8%
- Skkynet Cloud Systems Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.0%.
- The company has unprofitable business model: ROIC is -81.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Skkynet Cloud Systems Inc's Revenue increased on 9.7%. Revenue growth showed acceleration in FY18Q4 - it increased 36.3% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.4 pp from -2.3% to 9.1% in 2018. EBITDA Margin followed a growing trend at 23.0 pp per annum in the last 5 years.
Gross Margin decreased slightly on 1.1 pp from 97.6% to 96.5% in FY2018. SG&A as a % of Revenue dropped on 23.1 pp from 154% to 131% in FY2018.
Net Income margin jumped on 22.1 pp from -55.6% to -33.5% in FY2018. Net Income margin grew at 21.6 pp per annum in FY2014-FY2018.
Return on investment
The company operates at negative ROIC (-81.7%) and ROE (-119.9%). ROIC jumped on 102 pp from -184% to -81.7% in FY2018. ROE surged on 233 pp from -353% to -120% in FY2018. During FY2014-FY2018 ROIC bottomed in FY2016 at -323% and was growing since that time.
Leverage (Debt)
The company has no debt. Cash surged on 16.2%.
Financial and operational results
FY ended 10/31/2018
Skkynet Cloud Systems Inc ($SKKY) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 0.841 | 1.222 | 1.172 | 1.336 | 1.466 | 9.7% |
| Gross Profit | 0.839 | 1.190 | 1.149 | 1.304 | 1.415 | 8.5% |
| SG&A | | 2.574 | 2.296 | 2.054 | 1.915 | -6.7% |
| EBITDA | -1.003 | -1.416 | -1.148 | -0.750 | -0.500 | |
| Net Income | -0.972 | -1.312 | -1.097 | -0.743 | -0.491 | |
Balance Sheet
|
|---|
| Cash | 0.867 | 0.470 | 0.267 | 0.583 | 0.677 | 16.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.002 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | 7.4% | 45.2% | -4.0% | 14.0% | 9.7% | |
| EBITDA growth | 219.2% | 41.1% | -18.9% | -34.7% | -33.3% | |
|
|---|
| Gross Margin | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% | -1.1% |
| EBITDA Margin | -119.2% | -115.9% | -97.9% | -56.1% | -34.1% | 22.0% |
| SG&A, % of revenue | | 210.7% | 195.9% | 153.7% | 130.6% | -23.1% |
| Net Income Margin | -115.5% | -107.4% | -93.6% | -55.6% | -33.5% | 22.1% |
| CAPEX, % of revenue | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | |
|
|---|
| ROIC | -272.0% | -301.3% | -322.9% | -184.1% | -81.7% | 102.4% |
| ROE | | -340.0% | -684.8% | -352.5% | -119.9% | 232.6% |
Skkynet Cloud Systems Inc ($SKKY) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 0 | | 34.1% | -18.7% | -2.4% | 36.3% |
| EBITDA | -0 | -0 | -0 | 0 | | | | | |
| Net Income | -0 | -0 | -0 | 0 | | | | | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 1 | | 251.1% | 6.9% | 4.9% | 16.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 96.5% | 96.6% | 93.7% | 98.9% | | 0.2% | 1.1% | -6.2% | 0.2% |
| EBITDA Margin | -38.7% | -78.5% | -47.4% | 13.8% | | 45.9% | -32.1% | -20.5% | 89.8% |
| Net Income Margin | -44.2% | -84.7% | -34.8% | 14.8% | | 42.1% | -41.3% | -4.2% | 86.3% |
Peers in Application Software
Below we provide Skkynet Cloud Systems Inc benchmarking against other companies in Application Software 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| nFusz Inc ($FUSZ) | | | | | 433.3% |
| CloudCommerce Inc ($CLWD) | | -38.1% | 247.6% | 40.9% | 301.1% |
| Seven Stars Cloud Group, Inc. ($SSC) | | 134.7% | 663.8% | 310.3% | 161.7% |
| Aurora Mobile Limited ($JG) | | | | 304.9% | 150.8% |
| Intelligent Systems Corporation ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (151 companies) | -43.3% | 13.5% | 14.3% | 15.7% | 15.2% |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | | 45.2% | -4.0% | 14.0% | 9.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| hopTo Inc ($HPTO) | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% |
| Aware, Inc. ($AWRE) | 75.4% | 87.2% | 90.3% | 94.6% | 92.3% |
| Alteryx, Inc. ($AYX) | 77.5% | 80.5% | 81.3% | 83.4% | 91.0% |
| Aspen Technology, Inc. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| Datawatch Corporation ($DWCH) | 79.0% | 79.7% | 83.6% | 88.3% | 88.2% |
| |
|---|
| Median (150 companies) | 62.8% | 61.7% | 63.8% | 64.4% | 65.7% |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Aspen Technology, Inc. ($AZPN) | 34.5% | 42.2% | 46.0% | 45.2% | 43.3% |
| ANSYS, Inc. ($ANSS) | 45.9% | 45.8% | 45.1% | 41.9% | 41.4% |
| Paycom Software, Inc. ($PAYC) | 15.1% | 19.5% | 35.1% | 34.4% | 35.9% |
| j2 Global, Inc. ($JCOM) | 41.6% | 40.6% | 41.7% | 36.5% | 35.7% |
| Adobe Inc. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (152 companies) | -10.1% | -9.4% | -4.7% | -3.3% | -3.2% |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | -119.2% | -115.9% | -97.9% | -56.1% | -34.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TimefireVR Inc ($TFVR) | 0.0% | 350.5% | 4.3% | | 1,021.9% |
| MGT Capital Investments Inc ($MGTI) | 0.0% | 36.5% | 221.4% | 129.8% | 344.5% |
| Integrated Ventures Inc ($INTV) | | | | | 199.9% |
| ShotSpotter, Inc. ($SSTI) | | 18.3% | 28.9% | 27.1% | 24.3% |
| Ellie Mae, Inc. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (153 companies) | 2.8% | 2.7% | 3.0% | 2.3% | 2.4% |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InsPro Technologies Corp ($ITCC) | -558.9% | | | | 127.4% |
| Manhattan Associates, Inc. ($MANH) | 64.8% | 78.7% | 99.3% | 102.5% | 80.9% |
| Intuit Inc. ($INTU) | 34.2% | 23.7% | 52.1% | 72.6% | 66.8% |
| Aspen Technology, Inc. ($AZPN) | 133.4% | | | | 58.1% |
| Paycom Software, Inc. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (179 companies) | -14.2% | -11.2% | -9.2% | -10.2% | -9.3% |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | -272.0% | -301.3% | -322.9% | -184.1% | -81.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Upland Software, Inc. ($UPLD) | | | 16.4x | 115.6x | 16.7x |
| Nuance Communications, Inc. ($NUAN) | 7.9x | 5.7x | 5.3x | 7.1x | 15.2x |
| Asure Software Inc ($ASUR) | 3.4x | 4.5x | 3.6x | 9.5x | 14.5x |
| SS&C Technologies Holdings, Inc. ($SSNC) | 1.7x | 7.3x | 4.6x | 3.1x | 8.5x |
| Avaya Holdings Corp. ($AVYA) | | | | | 7.4x |
| |
|---|
| Median (70 companies) | -1.4x | -1.0x | -0.9x | -0.8x | -0.7x |
|---|
