support.com, Inc. revenue jumped on 15.7% while EBITDA Margin dropped on 12.0 pp from -1.5% to -13.6%
03/07/2019 • About support.com, Inc. (
$SPRT) • By InTwits
support.com, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -13.6%
- support.com, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -15.3% for the sames years
- support.com, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- It operates with high leverage: Net Debt/EBITDA is 4.9x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 15.7%. Revenue growth showed slowdown in 18Q4 - it was 7.7% YoY. During 2014-2018 Revenue growth bottomed in 2016 at -20.3% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.7 pp from 4.4% to -1.3% in FY2018.
Gross Margin decreased on 4.0 pp from 21.2% to 17.2% in 2018. SG&A as a % of Revenue decreased on 5.2 pp from 18.5% to 13.3% in 2018. During the last 5 years SG&A as a % of Revenue topped in 2016 at 31.8% and was declining since that time.
Net Income margin dropped on 10.5 pp from -2.5% to -13.1% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 0.30%. The company showed decline in CAPEX/Revenue of 2.2 pp from 2.5% in 2015 to 0.30% in 2018. Average CAPEX/Revenue for the last three years was 0.44%.
Leverage (Debt)
The company has no debt. Cash surged on 39.5%.
Management team
support.com, Inc.'s CEO is Richard A Bloom "Rick". Richard A Bloom "Rick" is a founder and has 1 year tenure with the company.
Financial and operational results
FY ended 12/31/2018
support.com, Inc. ($SPRT) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 82.991 | 77.333 | 61.660 | 60.121 | 69.549 | 15.7% |
| Gross Profit | 21.545 | 15.358 | 10.929 | 12.733 | 11.945 | -6.2% |
| SG&A | 18.526 | 21.556 | 19.629 | 11.121 | 9.231 | -17.0% |
| EBITDA | -1.784 | -27.071 | -14.703 | -0.921 | -9.428 | |
| Net Income | -3.483 | -27.041 | -15.956 | -1.526 | -9.100 | |
Balance Sheet
|
|---|
| Cash | 23.354 | 27.598 | 16.890 | 18.050 | 25.182 | 39.5% |
| 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 | 0.231 | 1.896 | 0.561 | 0.063 | 0.208 | 230.2% |
Ratios
|
|---|
| Revenue growth | -5.9% | -6.8% | -20.3% | -2.5% | 15.7% | |
| EBITDA growth | -114.4% | 1,417.4% | -45.7% | -93.7% | 923.7% | |
|
|---|
| Gross Margin | 26.0% | 19.9% | 17.7% | 21.2% | 17.2% | -4.0% |
| EBITDA Margin | -2.1% | -35.0% | -23.8% | -1.5% | -13.6% | -12.0% |
| SG&A, % of revenue | 22.3% | 27.9% | 31.8% | 18.5% | 13.3% | -5.2% |
| Net Income Margin | -4.2% | -35.0% | -25.9% | -2.5% | -13.1% | -10.5% |
| CAPEX, % of revenue | 0.3% | 2.5% | 0.9% | 0.1% | 0.3% | 0.2% |
|
|---|
| ROE | -3.6% | -32.4% | -24.8% | -2.7% | -17.4% | -14.8% |
support.com, Inc. ($SPRT) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 17 | 17 | 18 | 18 | | 15.6% | 20.4% | 19.9% | 7.7% |
| EBITDA | -1 | 0 | -9 | 0 | | | | -5,182.9% | 57.6% |
| Net Income | -1 | 0 | -9 | 0 | | | | -4,060.2% | |
Balance Sheet
|
|---|
| Cash | 20 | 19 | 16 | 25 | | -9.8% | -3.3% | -24.2% | 39.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 14.3% | 16.9% | 19.7% | 17.5% | | -6.6% | -6.7% | -2.9% | -0.4% |
| EBITDA Margin | -5.4% | 2.0% | -51.1% | 1.8% | | 2.8% | 2.9% | -52.3% | 0.6% |
| Net Income Margin | -4.6% | 2.3% | -50.8% | 2.4% | | 4.4% | 3.4% | -52.3% | 4.3% |
Peers in Application Software
Below you can find support.com, Inc. benchmarking vs. other companies in Application 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 |
|---|
| 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 ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (151 companies) | -43.3% | 14.0% | 14.3% | 15.7% | 15.2% |
|---|
| support.com, Inc. ($SPRT) | | -6.8% | -20.3% | -2.5% | 15.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| hopTo Inc ($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. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (150 companies) | 63.4% | 61.9% | 64.2% | 64.6% | 66.1% |
|---|
| support.com, Inc. ($SPRT) | 26.0% | 19.9% | 17.7% | 21.2% | 17.2% |
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. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (152 companies) | -10.3% | -9.4% | -4.7% | -4.2% | -3.2% |
|---|
| support.com, Inc. ($SPRT) | -2.1% | -35.0% | -23.8% | -1.5% | -13.6% |
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. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (153 companies) | 2.8% | 2.7% | 3.0% | 2.3% | 2.4% |
|---|
| support.com, Inc. ($SPRT) | 0.3% | 2.5% | 0.9% | 0.1% | 0.3% |
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. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (179 companies) | -14.3% | -12.2% | -9.5% | -11.0% | -9.8% |
|---|
| support.com, Inc. ($SPRT) | | | | | |
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 |
|---|
