Gopher Protocol Inc reports 461% revenue growth in 2018 and 10.8 pp EBITDA Margin decline from -75.6% to -86.4%
03/28/2019 • About Gopher Protocol Inc (
$GOPH) • By InTwits
Gopher Protocol Inc reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Gopher Protocol Inc is a fast growth stock: 2018 revenue growth was 461%, 5 year revenue CAGR was 249% at 2018 ROIC -378%
- The company operates at negative EBITDA Margin: -86.4%
- Gopher Protocol Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -86.9% for the sames years
- The company has unprofitable business model: ROIC is -377.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 461%. Revenue growth showed slowdown in 18Q4 - it was 216.6% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 10.8 pp from -75.6% to -86.4% in 2018.
Gross Margin decreased on 2.2 pp from 5.9% to 3.7% in 2018. SG&A as a % of Revenue decreased on 6.7 pp from 41.3% to 34.6% in 2018.
Net Income margin surged on 11.5 pp from -112% to -100% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 0.033%. CAPEX/Revenue showed almost no change from 2015 to 2018.
Return on investment
The company operates at negative ROIC (-377.6%) and ROE (-552.6%). ROIC dropped on 138 pp from -240% to -378% in 2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -62.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2018. Debt surged on 10.3% while cash jumped on 42.8%.
Gopher Protocol Inc has short term refinancing risk: cash is only 64.3% of short term debt.
Financial and operational results
FY ended 12/31/2018
Gopher Protocol Inc ($GOPH) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 0.120 | 0.090 | 0.165 | 9.192 | 51.570 | 461.0% |
| Gross Profit | | | | 0.541 | 1.893 | 250.2% |
| SG&A | | 0.143 | 1.528 | 3.795 | 17.849 | 370.4% |
| EBITDA | -0.243 | -0.052 | -1.362 | -6.945 | -44.549 | |
| Net Income | -0.296 | -0.096 | -1.586 | -10.287 | -51.770 | |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.021 | 0.005 | 1.305 | 1.864 | 42.8% |
| Short Term Debt | 0.252 | 0.039 | 0.000 | 0.026 | 2.897 | 11,207.5% |
| Long Term Debt | | 0.000 | 0.054 | 2.600 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | | 0.000 | 0.000 | 0.078 | 0.017 | -78.4% |
Ratios
|
|---|
| Revenue growth | 20.0% | -25.0% | 83.3% | 5,471.1% | 461.0% | |
| EBITDA growth | 147.6% | -78.6% | 2,522.7% | 410.0% | 541.4% | |
|
|---|
| Gross Margin | | | | 5.9% | 3.7% | -2.2% |
| EBITDA Margin | -202.6% | -57.7% | -825.4% | -75.6% | -86.4% | -10.8% |
| SG&A, % of revenue | | 159.2% | 926.2% | 41.3% | 34.6% | -6.7% |
| Net Income Margin | -246.3% | -106.8% | -961.4% | -111.9% | -100.4% | 11.5% |
| CAPEX, % of revenue | | 0.0% | 0.0% | 0.9% | 0.0% | -0.8% |
|
|---|
| ROIC | | | | -239.6% | -377.6% | -138.0% |
| ROE | | | | | -552.6% | |
Gopher Protocol Inc ($GOPH) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 13 | 16 | 15 | | 17,465.8% | 29,825.4% | 247.4% | 216.6% |
| EBITDA | -14 | -7 | -21 | -3 | | | | | |
| Net Income | -14 | -7 | -25 | -5 | | | | | |
Balance Sheet
|
|---|
| Cash | 1 | 0 | 1 | 2 | | 46,921.5% | 543.7% | 1,858.9% | 42.8% |
| Short Term Debt | 1 | 1 | 1 | 3 | | | | 1,068.0% | 11,207.5% |
| Long Term Debt | 3 | 3 | 3 | 0 | | 4,639.6% | 2,459.3% | 0.0% | -100.0% |
Ratios
|
|---|
| Gross Margin | 2.5% | 4.1% | 5.4% | 2.1% | | | | -1.2% | -3.2% |
| EBITDA Margin | -172.3% | -50.2% | -136.3% | -20.4% | | 231.7% | 658.8% | -10.3% | -2.9% |
| Net Income Margin | -178.5% | -55.7% | -159.9% | -36.3% | | 228.6% | 3,038.5% | -27.0% | 23.5% |
Peers in IT Consulting & Other Services
Below we provide Gopher Protocol Inc 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 |
|---|
| 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% |
| Virtusa Corporation ($VRTU) | | 20.7% | 25.3% | 43.0% | 18.9% |
| |
|---|
| Median (35 companies) | | 3.5% | 7.7% | 3.8% | 3.4% |
|---|
| Gopher Protocol Inc ($GOPH) | | -25.0% | 83.3% | 5,471.1% | 461.0% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inpixon ($INPX) | 29.8% | 28.9% | 28.1% | 68.7% | 71.4% |
| Gartner, Inc. ($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 ($BAH) | 50.4% | 50.8% | 52.3% | 53.6% | 53.5% |
| |
|---|
| Median (37 companies) | 26.5% | 32.1% | 28.8% | 30.0% | 29.9% |
|---|
| Gopher Protocol Inc ($GOPH) | | | | 5.9% | 3.7% |
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 ($DXC) | | | | 8.0% | 16.3% |
| |
|---|
| Median (36 companies) | 5.1% | 3.5% | 6.7% | 7.0% | 7.6% |
|---|
| Gopher Protocol Inc ($GOPH) | -202.6% | -57.7% | -825.4% | -75.6% | -86.4% |
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. ($SREV) | 3.4% | 4.7% | 10.4% | 7.2% | 6.5% |
| |
|---|
| Median (35 companies) | 1.0% | 0.9% | 1.2% | 1.4% | 1.5% |
|---|
| Gopher Protocol Inc ($GOPH) | | 0.0% | 0.0% | 0.9% | 0.0% |
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. ($EPAM) | 19.7% | 18.4% | 18.2% | 18.9% | 21.2% |
| |
|---|
| Median (44 companies) | 6.9% | 5.8% | 7.4% | 5.6% | 6.9% |
|---|
| Gopher Protocol Inc ($GOPH) | | | | -239.6% | -377.6% |
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 |
|---|
