InsPro Technologies Corp Net Income jumped on 52.8% and EBITDA Margin increased on 3.5 pp from 9.9% to 13.4%
04/01/2019 • About InsPro Technologies Corp (
$ITCC) • By InTwits
InsPro Technologies Corp reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 13.4% in 2018 vs. 9.9% in 2017 vs. -24.6% in 2014
- InsPro Technologies Corp 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 -7.2%
- InsPro Technologies Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: $0m in 2018, $0m in 2017, $0m in 2016, $0m in 2015, $1m in 2014
- The company has highly profitable business model: ROIC is 127.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased slightly on 0.54%. Revenue decline showed acceleration in 18Q4 - it was 17.6% YoY. Revenue decline was accelerating on average at -6.8 pp per annum in the last 5 years. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.5 pp from 9.9% to 13.4% in 2018. EBITDA Margin grew at 11.3 pp per annum in the last 5 years.
Gross Margin decreased slightly on 1.4 pp from 36.4% to 35.0% in 2018. SG&A as a % of Revenue showed almost no change in 2018. During the last 5 years SG&A as a % of Revenue bottomed in 2016 at 4.1% and was growing since that time.
Net Income margin increased on 4.0 pp from 7.5% to 11.5% in 2018. Net Income margin stuck to a growing trend at 11.6 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 1.6%. The company showed small growth in CAPEX/Revenue of 0.98 pp from 0.65% in 2015 to 1.6% in 2018. It's average CAPEX/Revenue for the last three years was 0.64%. During 2014-2018 CAPEX as a % of Revenue bottomed in 2017 at 0.12%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.7x and Debt / EBITDA is 0.1x. Debt jumped on 15.4% while cash increased slightly on 1.7%.
InsPro Technologies Corp has no short term refinancing risk: cash is higher than short term debt (3,295.1%).
Financial and operational results
FY ended 12/31/2018
InsPro Technologies Corp ($ITCC) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 18.670 | 21.378 | 21.831 | 21.752 | 21.634 | -0.5% |
| Gross Profit | 1.835 | -0.325 | 2.761 | 7.910 | 7.567 | -4.3% |
| SG&A | 1.330 | 1.362 | 0.903 | 0.946 | 1.013 | 7.1% |
| EBITDA | -4.592 | -5.825 | -2.211 | 2.160 | 2.898 | 34.2% |
| Net Income | -5.185 | -6.376 | -2.668 | 1.622 | 2.478 | 52.8% |
Balance Sheet
|
|---|
| Cash | 3.431 | 3.398 | 3.162 | 5.018 | 5.101 | 1.7% |
| Short Term Debt | 0.732 | 0.255 | 0.227 | 0.190 | 0.155 | -18.4% |
| Long Term Debt | 0.231 | 0.150 | 0.153 | 0.075 | 0.151 | 101.1% |
Cash flow
|
|---|
| Capex | 0.576 | 0.140 | 0.034 | 0.025 | 0.354 | 1,291.2% |
Ratios
|
|---|
| Revenue growth | 26.1% | 14.5% | 2.1% | -0.4% | -0.5% | |
| EBITDA growth | 222.6% | 26.8% | -62.0% | -197.7% | 34.2% | |
|
|---|
| Gross Margin | 9.8% | -1.5% | 12.6% | 36.4% | 35.0% | -1.4% |
| EBITDA Margin | -24.6% | -27.2% | -10.1% | 9.9% | 13.4% | 3.5% |
| SG&A, % of revenue | 7.1% | 6.4% | 4.1% | 4.4% | 4.7% | 0.3% |
| Net Income Margin | -27.8% | -29.8% | -12.2% | 7.5% | 11.5% | 4.0% |
| CAPEX, % of revenue | 3.1% | 0.7% | 0.2% | 0.1% | 1.6% | 1.5% |
|
|---|
| ROIC | -558.9% | | | | 127.4% | |
| Net Debt/EBITDA | | | | -2.2x | -1.7x | 0.5x |
InsPro Technologies Corp ($ITCC) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 6 | 5 | 5 | 5 | | 22.2% | 12.8% | -12.6% | -17.6% |
| EBITDA | 1 | 1 | 1 | 0 | | | | -60.6% | -74.0% |
| Net Income | 1 | 1 | 0 | 0 | | | | -67.9% | -74.6% |
Balance Sheet
|
|---|
| Cash | 5 | 5 | 5 | 5 | | 130.1% | 54.6% | 51.5% | 1.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | | 9.3% | 6.0% | -9.8% | -18.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | | -27.0% | 147.3% | 68.1% | 101.1% |
Ratios
|
|---|
| Gross Margin | 42.3% | 30.7% | 32.4% | 32.9% | | 23.5% | 2.1% | -12.1% | -15.8% |
| EBITDA Margin | 17.6% | 15.9% | 11.8% | 7.5% | | 27.9% | 23.7% | -14.4% | -16.2% |
| Net Income Margin | 15.0% | 15.0% | 9.0% | 6.1% | | 27.8% | 24.8% | -15.6% | -13.8% |
Peers in Application Software
Below you can find InsPro Technologies Corp 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 ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (151 companies) | -43.3% | 13.5% | 14.3% | 15.7% | 15.2% |
|---|
| InsPro Technologies Corp ($ITCC) | | 14.5% | 2.1% | -0.4% | -0.5% |
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. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (150 companies) | 63.4% | 61.9% | 64.2% | 64.6% | 66.1% |
|---|
| InsPro Technologies Corp ($ITCC) | 9.8% | -1.5% | 12.6% | 36.4% | 35.0% |
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. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (152 companies) | -10.1% | -9.4% | -4.7% | -4.2% | -3.3% |
|---|
| InsPro Technologies Corp ($ITCC) | -24.6% | -27.2% | -10.1% | 9.9% | 13.4% |
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. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (153 companies) | 2.8% | 2.7% | 3.0% | 2.3% | 2.4% |
|---|
| InsPro Technologies Corp ($ITCC) | 3.1% | 0.7% | 0.2% | 0.1% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| 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% |
| The Trade Desk, Inc. ($TTD) | | 63.3% | 42.1% | 30.0% | 32.2% |
| |
|---|
| Median (179 companies) | -14.2% | -12.2% | -9.5% | -11.0% | -10.4% |
|---|
| InsPro Technologies Corp ($ITCC) | -558.9% | | | | 127.4% |
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. ($AVYA) | | | | | 7.4x |
| |
|---|
| Median (69 companies) | -1.4x | -1.0x | -0.9x | -0.8x | -0.6x |
|---|
| InsPro Technologies Corp ($ITCC) | | | | -2.2x | -1.7x |
