TiVo Corporation reports 167% EBITDA decline in 2018 and 15.8% Revenue decline
02/26/2019 • About TiVo Corporation (
$TIVO) • By InTwits
TiVo Corporation reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: -18.7% in 2018, 23.4% in 2017, 22.4% in 2016, 31.6% in 2015, 33.0% in 2014
- TiVo Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 3.1%
- CAPEX is quite volatile: $24m in 2018, $38m in 2017, $20m in 2016, $11m in 2015, $23m in 2014
- The company has unprofitable business model: ROIC is -11.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 15.8%. Revenue decline showed acceleration in 18Q4 - it was 21.4% YoY. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 42.1 pp from 23.4% to -18.7% in 2018.
Gross Margin decreased slightly on 1.2 pp from 74.1% to 72.9% in 2018. Gross Margin declined at -2.1 pp per annum in 2014-2018. SG&A as a % of Revenue increased slightly on 1.2 pp from 24.8% to 26.0% in 2018.
Net Income margin dropped on 45.6 pp from -4.6% to -50.2% in 2018. During the last 5 years Net Income margin topped in 2016 at 5.0% and was declining since that time.
Investments (CAPEX, working capital and M&A)
TiVo Corporation's CAPEX/Revenue was 3.4% in 2018. TiVo Corporation showed small growth in CAPEX/Revenue of 1.3 pp from 2.1% in 2015 to 3.4% in 2018. For the last three years the average CAPEX/Revenue was 3.7%.
Return on investment
The company operates at negative ROIC (-11.0%) and ROE (-20.9%). ROIC dropped on 11.2 pp from 0.16% to -11.0% in 2018. ROE dropped on 18.9 pp from -2.0% to -20.9% in 2018. ROIC followed a declining trend in the last 5 years. During the last 5 years ROE topped in 2016 at 2.2% and was declining since that time.
Leverage (Debt)
Debt level is -2.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 4.4x from 4.4x to in 2018. Debt increased slightly on 0.92% while cash jumped on 25.6%.
TiVo Corporation has short term refinancing risk: cash is only 43.4% of short term debt.
Management team
The company's CFO is Peter C Halt. Peter C Halt has 2 years tenure at the company.
Financial and operational results
FY ended 12/31/2018
TiVo Corporation ($TIVO) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 542.3 | 526.3 | 649.1 | 826.5 | 695.9 | -15.8% |
| Gross Profit | 435.1 | 423.3 | 490.4 | 612.0 | 507.2 | -17.1% |
| SG&A | 136.7 | 154.4 | 192.8 | 205.0 | 181.0 | -11.7% |
| EBITDA | 179.1 | 166.1 | 145.1 | 193.6 | -130.2 | -167.2% |
| Net Income | -69.7 | -4.3 | 32.7 | -38.0 | -349.3 | |
Balance Sheet
|
|---|
| Cash | 154.6 | 101.7 | 192.6 | 129.0 | 162.0 | 25.6% |
| Short Term Debt | 302.4 | 7.0 | 7.0 | 7.0 | 373.4 | 5,233.7% |
| Long Term Debt | 798.9 | 960.2 | 967.7 | 976.1 | 618.8 | -36.6% |
Cash flow
|
|---|
| Capex | 23.4 | 11.3 | 20.3 | 38.0 | 23.9 | -37.1% |
Ratios
|
|---|
| Revenue growth | 0.9% | -3.0% | 23.3% | 27.3% | -15.8% | |
| EBITDA growth | 2.6% | -7.3% | -12.7% | 33.4% | -167.2% | |
|
|---|
| Gross Margin | 80.2% | 80.4% | 75.5% | 74.1% | 72.9% | -1.2% |
| EBITDA Margin | 33.0% | 31.6% | 22.4% | 23.4% | -18.7% | -42.1% |
| SG&A, % of revenue | 25.2% | 29.3% | 29.7% | 24.8% | 26.0% | 1.2% |
| Net Income Margin | -12.9% | -0.8% | 5.0% | -4.6% | -50.2% | -45.6% |
| CAPEX, % of revenue | 4.3% | 2.1% | 3.1% | 4.6% | 3.4% | -1.2% |
|
|---|
| ROIC | 3.6% | 3.3% | 0.9% | 0.2% | -11.0% | -11.2% |
| ROE | -5.8% | -0.4% | 2.2% | -2.0% | -20.9% | -18.9% |
| Net Debt/EBITDA | 5.3x | 5.2x | 5.4x | 4.4x | |
TiVo Corporation ($TIVO) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 190 | 173 | 165 | 168 | | -7.7% | -17.1% | -16.8% | -21.4% |
| EBITDA | 38 | 38 | 35 | -240 | | -10.3% | -32.2% | -22.8% | -573.5% |
| Net Income | -18 | -21 | -23 | -288 | | | | | -1,663.1% |
Balance Sheet
|
|---|
| Cash | 140 | 132 | 150 | 162 | | -25.2% | 47.0% | 61.3% | 25.6% |
| Short Term Debt | 7 | 7 | 7 | 373 | | 0.0% | 0.0% | 0.0% | 5,233.7% |
| Long Term Debt | 978 | 981 | 983 | 619 | | 0.9% | 0.9% | 0.9% | -36.6% |
Ratios
|
|---|
| Gross Margin | 74.6% | 72.5% | 72.7% | 71.6% | | 2.0% | -3.0% | -0.7% | -3.1% |
| EBITDA Margin | 19.8% | 21.9% | 21.2% | -142.7% | | -0.6% | -4.9% | -1.6% | -166.4% |
| Net Income Margin | -9.3% | -11.9% | -13.9% | -171.1% | | 7.5% | -9.6% | -5.3% | -179.7% |
Peers in Systems Software
Below you can find TiVo Corporation benchmarking vs. other companies in Systems Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Advantego Corp ($ADGO) | | | | | 973.8% |
| Solbright Group Inc ($SBRT) | | | 286.4% | 25.4% | 414.0% |
| Duos Technologies Group Inc ($DUOT) | | 61.0% | -9.8% | -36.4% | 210.2% |
| Dell Technologies Inc. ($DVMT) | | | | | 145.7% |
| Finjan Holdings, Inc. ($FNJN) | | -6.2% | 292.3% | 174.6% | 63.0% |
| |
|---|
| Median (48 companies) | | 20.6% | 14.6% | 14.0% | 20.4% |
|---|
| TiVo Corporation ($TIVO) | | -3.0% | 23.3% | 27.3% | -15.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| StrikeForce Technologies Inc ($SFOR) | 97.0% | 96.9% | 98.3% | 95.4% | 94.0% |
| Varonis Systems, Inc. ($VRNS) | 90.2% | 90.6% | 90.5% | 90.4% | 89.8% |
| Check Point Software Technologies Ltd. ($CHKP) | 88.2% | 88.5% | 88.5% | 88.6% | 89.6% |
| Tableau Software, Inc. ($DATA) | 91.0% | 88.7% | 88.0% | 87.1% | 87.7% |
| Attunity Ltd. ($ATTU) | 90.7% | 84.9% | 83.9% | 84.1% | 87.5% |
| |
|---|
| Median (53 companies) | 76.1% | 74.5% | 73.1% | 73.9% | 75.0% |
|---|
| TiVo Corporation ($TIVO) | 80.2% | 80.4% | 75.5% | 74.1% | 72.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Check Point Software Technologies Ltd. ($CHKP) | 54.3% | 52.4% | 49.8% | 50.7% | 48.8% |
| SolarWinds Corporation ($SWI) | | | -8.0% | 44.0% | 44.8% |
| Finjan Holdings, Inc. ($FNJN) | -192.1% | -295.2% | 2.2% | 30.2% | 42.0% |
| Oracle Corporation ($ORCL) | 46.2% | 43.8% | 40.8% | 40.2% | 40.8% |
| CA Inc. ($CA) | 33.9% | 36.7% | 37.2% | 36.1% | 35.3% |
| |
|---|
| Median (47 companies) | -2.4% | -6.6% | -9.8% | -5.4% | -3.9% |
|---|
| TiVo Corporation ($TIVO) | 33.0% | 31.6% | 22.4% | 23.4% | -18.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| The Rubicon Project, Inc. ($RUBI) | 15.6% | 11.4% | 12.0% | 26.0% | 16.0% |
| CYREN Ltd. ($CYRN) | 2.4% | 4.4% | 3.2% | 5.8% | 9.2% |
| ServiceNow, Inc. ($NOW) | 8.0% | 8.7% | 7.6% | 7.8% | 8.6% |
| Qualys, Inc. ($QLYS) | 10.4% | 12.2% | 11.7% | 16.4% | 8.2% |
| Zscaler, Inc. ($ZS) | | 12.5% | 7.8% | 6.5% | 8.0% |
| |
|---|
| Median (48 companies) | 2.7% | 2.2% | 2.0% | 2.2% | 2.5% |
|---|
| TiVo Corporation ($TIVO) | 4.3% | 2.1% | 3.1% | 4.6% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Finjan Holdings, Inc. ($FNJN) | -42.6% | -113.5% | 3.4% | 46.6% | 64.1% |
| Fortinet, Inc. ($FTNT) | 9.2% | 2.1% | 5.3% | 15.0% | 28.0% |
| Check Point Software Technologies Ltd. ($CHKP) | 22.2% | 23.7% | 24.7% | 26.8% | 25.5% |
| MAM Software Group, Inc. ($MAMS) | 13.3% | 19.3% | 21.1% | 24.2% | 25.2% |
| Red Hat, Inc. ($RHT) | 15.1% | 14.1% | 14.2% | 16.4% | 22.4% |
| |
|---|
| Median (56 companies) | 0.0% | 0.0% | -4.3% | -4.7% | -0.9% |
|---|
| TiVo Corporation ($TIVO) | 3.6% | 3.3% | 0.9% | 0.2% | -11.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NXT-ID Inc. ($NXTD) | | | | | 9.7x |
| Symantec Corporation ($SYMC) | -3.2x | -1.5x | -5.0x | 10.0x | 4.7x |
| SolarWinds Corporation ($SWI) | | | | 6.2x | 4.1x |
| Oracle Corporation ($ORCL) | 0.4x | 1.2x | 1.6x | 2.4x | 2.4x |
| ServiceNow, Inc. ($NOW) | | | | 9.0x | 0.9x |
| |
|---|
| Median (23 companies) | -2.7x | -1.5x | -1.5x | -0.8x | -0.4x |
|---|
