Inpixon reports 4.5% revenue decline in 2018 and 118 pp EBITDA Margin decline from -207% to -325%
03/26/2019 • About Inpixon (
$INPX) • By InTwits
Inpixon reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Inpixon is a company in decline: 2018 revenue growth was -4.5%, 5 years revenue CAGR was -40.5%
- The company operates at negative EBITDA Margin: -325.2%
- Inpixon spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.0%. Average EBITDA Margin for the same period was -25.5%
- Inpixon has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 0.6%.
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $1m in 2016, $0m in 2015, $1m in 2014
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 4.5%. During the last 5 years Revenue growth bottomed in 2017 at -92.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 118 pp from -207% to -325% in 2018. EBITDA Margin followed a declining trend at -83.6 pp per annum in the last 5 years.
Gross Margin increased on 2.7 pp from 68.7% to 71.4% in 2018. During the last 5 years Gross Margin bottomed in 2016 at 28.1% and was growing since that time. SG&A as a % of Revenue jumped on 86.2 pp from 336% to 423% in 2018.
Net Income margin jumped on 236 pp from -890% to -654% in 2018. During the last 5 years Net Income margin bottomed in 2017 at -890%.
Investments (CAPEX, working capital and M&A)
In 2018 Inpixon had CAPEX/Revenue of 2.3%. CAPEX/Revenue increased slightly on 1.8 pp from 0.53% in 2015 to 2.3% in 2018. For the last three years the average CAPEX/Revenue was 2.0%.
Leverage (Debt)
Debt level is -3.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2018. Debt increased on 9.8% while cash jumped on 747%.
Inpixon has short term refinancing risk: cash is only 24.4% of short term debt.
Financial and operational results
FY ended 12/31/2018
Inpixon ($INPX) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 62.949 | 66.957 | 53.167 | 3.935 | 3.756 | -4.5% |
| Gross Profit | 18.740 | 19.329 | 14.927 | 2.703 | 2.680 | -0.9% |
| SG&A | | 25.757 | 23.769 | 13.241 | 15.875 | 19.9% |
| EBITDA | -3.484 | -6.765 | -18.062 | -8.136 | -12.216 | |
| Net Income | -7.536 | -11.719 | -27.114 | -35.013 | -24.572 | |
Balance Sheet
|
|---|
| Cash | 3.228 | 4.060 | 1.821 | 0.119 | 1.008 | 747.1% |
| Short Term Debt | 5.418 | 9.417 | 6.887 | 3.058 | 4.127 | 35.0% |
| Long Term Debt | 0.100 | 1.226 | 4.047 | 0.767 | 0.074 | -90.4% |
Cash flow
|
|---|
| Capex | 1.053 | 0.355 | 0.526 | 0.101 | 0.088 | -12.9% |
Ratios
|
|---|
| Revenue growth | 24.5% | 6.4% | -20.6% | -92.6% | -4.5% | |
| EBITDA growth | 200.6% | 94.2% | 167.0% | -55.0% | 50.1% | |
|
|---|
| Gross Margin | 29.8% | 28.9% | 28.1% | 68.7% | 71.4% | 2.7% |
| EBITDA Margin | -5.5% | -10.1% | -34.0% | -206.8% | -325.2% | -118.5% |
| SG&A, % of revenue | | 38.5% | 44.7% | 336.5% | 422.7% | 86.2% |
| Net Income Margin | -12.0% | -17.5% | -51.0% | -889.8% | -654.2% | 235.6% |
| CAPEX, % of revenue | 1.7% | 0.5% | 1.0% | 2.6% | 2.3% | -0.2% |
|
|---|
| ROIC | -26.7% | -33.0% | -99.0% | -30,989.7% | | |
| ROE | -39.1% | -42.3% | -200.7% | | | |
Peers in IT Consulting & Other Services
Below we provide Inpixon benchmarking against other companies in IT Consulting & Other 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Gopher Protocol Inc ($GOPH) | | -25.0% | 83.3% | 5,471.1% | 461.0% |
| CLPS Incorporation ($CLPS) | | | | 8.1% | 56.0% |
| EPAM Systems, Inc. ($EPAM) | | 25.2% | 26.9% | 25.0% | 27.1% |
| Gartner, Inc. ($IT) | | 7.0% | 13.0% | 35.5% | 20.1% |
| Computer Task Group, Incorporated ($CTG) | | -6.0% | -12.1% | -7.3% | 19.1% |
| |
|---|
| Median (35 companies) | | 3.3% | 8.3% | 4.0% | 3.9% |
|---|
| Inpixon ($INPX) | | 6.4% | -20.6% | -92.6% | -4.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Gartner, Inc. ($IT) | 60.5% | 61.2% | 61.3% | 60.1% | 63.1% |
| InterXion Holding N.V. ($INXN) | 59.2% | 60.8% | 61.5% | 61.1% | 60.9% |
| LiveRamp Holdings, Inc. ($RAMP) | 25.1% | 38.6% | 42.5% | 45.7% | 56.2% |
| Booz Allen Hamilton Holding Corporation ($BAH) | 50.4% | 50.8% | 52.3% | 53.6% | 53.5% |
| Teradata Corporation ($TDC) | 54.1% | 50.4% | 51.2% | 47.5% | 47.4% |
| |
|---|
| Median (37 companies) | 25.8% | 32.4% | 29.5% | 27.7% | 28.9% |
|---|
| Inpixon ($INPX) | 29.8% | 28.9% | 28.1% | 68.7% | 71.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InterXion Holding N.V. ($INXN) | 41.3% | 44.9% | 43.3% | 42.2% | 42.8% |
| Switch, Inc. ($SWCH) | | 50.7% | 37.0% | 28.5% | 39.8% |
| Cognizant Technology Solutions Corporation ($CTSH) | 20.4% | 19.9% | 19.8% | 19.7% | 20.5% |
| Taoping Inc. ($TAOP) | -54.0% | -237.5% | -117.7% | 13.2% | 18.7% |
| DXC Technology Company ($DXC) | | | | 8.0% | 16.3% |
| |
|---|
| Median (36 companies) | 5.1% | 3.5% | 6.7% | 7.0% | 7.6% |
|---|
| Inpixon ($INPX) | -5.5% | -10.1% | -34.0% | -206.8% | -325.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InterXion Holding N.V. ($INXN) | 62.5% | 48.1% | 57.4% | 50.5% | 78.3% |
| Switch, Inc. ($SWCH) | | 71.5% | 90.2% | 106.4% | 67.9% |
| Taoping Inc. ($TAOP) | 1.4% | 29.2% | 34.0% | 20.8% | 8.7% |
| Teradata Corporation ($TDC) | 2.0% | 2.1% | 2.3% | 3.6% | 7.1% |
| ServiceSource International, Inc. ($SREV) | 3.4% | 4.7% | 10.4% | 7.2% | 6.5% |
| |
|---|
| Median (35 companies) | 0.9% | 0.9% | 1.2% | 1.2% | 1.5% |
|---|
| Inpixon ($INPX) | 1.7% | 0.5% | 1.0% | 2.6% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Accenture plc ($ACN) | 80.5% | 81.0% | 81.3% | 61.7% | 66.1% |
| The Hackett Group, Inc. ($HCKT) | 11.2% | 19.5% | 31.7% | 23.8% | 24.6% |
| Cognizant Technology Solutions Corporation ($CTSH) | 24.7% | 22.0% | 21.3% | 21.9% | 23.8% |
| Booz Allen Hamilton Holding Corporation ($BAH) | 25.3% | 26.5% | 23.1% | 22.6% | 22.5% |
| EPAM Systems, Inc. ($EPAM) | 19.7% | 18.4% | 18.2% | 18.9% | 21.2% |
| |
|---|
| Median (44 companies) | 7.5% | 6.9% | 7.7% | 5.6% | 6.9% |
|---|
| Inpixon ($INPX) | -26.7% | -33.0% | -99.0% | -30,989.7% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Infinite Group Inc ($IMCI) | | | 169.6x | | 10.5x |
| InterXion Holding N.V. ($INXN) | 3.3x | 2.9x | 3.4x | 3.8x | 4.6x |
| Gartner, Inc. ($IT) | 0.1x | 1.3x | 0.6x | 11.7x | 4.1x |
| Switch, Inc. ($SWCH) | | 2.2x | 4.0x | 3.2x | 3.3x |
| Presidio, Inc. ($PSDO) | 0.0x | | 5.6x | 3.6x | 3.1x |
| |
|---|
| Median (29 companies) | -0.2x | -0.3x | 0.2x | 0.6x | 0.8x |
|---|
