hopTo Inc reports 128% EBITDA decline in 2018 and 18.9% Revenue decline
04/01/2019 • About hopTo Inc (
$HPTO) • By InTwits
hopTo Inc reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- hopTo Inc is a company in decline: 2018 revenue growth was -18.9%, 5 years revenue CAGR was -11.7%
- The company operates at negative EBITDA Margin: -4.1%
- hopTo Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.0%. Average EBITDA Margin for the same period was -48.8%
- hopTo Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 18.9%. Revenue decline showed acceleration in 18Q4 - it was 33.8% YoY. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 15.9 pp from 11.8% to -4.1% in 2018. EBITDA Margin followed a growing trend at 26.3 pp per annum in 2014-2018.
Gross Margin decreased on 2.9 pp from 98.2% to 95.4% in 2018. SG&A as a % of Revenue increased on 3.1 pp from 49.2% to 52.3% in 2018. SG&A as a % of Revenue declined at -13.6 pp per annum in the last 5 years.
Net Income margin dropped on 16.4 pp from 15.4% to -1.00% in 2018.
Leverage (Debt)
The company has no debt. Cash dropped on 12.1%.
Financial and operational results
FY ended 12/31/2018
hopTo Inc ($HPTO) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 5.553 | 4.981 | 4.001 | 3.890 | 3.153 | -18.9% |
| Gross Profit | 5.100 | 4.372 | 3.839 | 3.821 | 3.008 | -21.3% |
| SG&A | 5.403 | 4.725 | 3.534 | 1.914 | 1.649 | -13.8% |
| EBITDA | -4.830 | -4.242 | -1.788 | 0.459 | -0.131 | -128.5% |
| Net Income | -3.594 | -4.391 | -1.853 | 0.601 | -0.031 | -105.2% |
Balance Sheet
|
|---|
| Cash | 1.557 | 1.777 | 0.546 | 1.015 | 0.893 | -12.1% |
| Short Term Debt | 0.008 | 0.008 | 0.007 | 0.000 | 0.000 | |
| Long Term Debt | 0.015 | 0.007 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.051 | 0.007 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | -5.7% | -10.3% | -19.7% | -2.8% | -18.9% | |
| EBITDA growth | 0.3% | -12.2% | -57.8% | -125.6% | -128.5% | |
|
|---|
| Gross Margin | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% | -2.9% |
| EBITDA Margin | -87.0% | -85.2% | -44.7% | 11.8% | -4.1% | -15.9% |
| SG&A, % of revenue | 97.3% | 94.9% | 88.3% | 49.2% | 52.3% | 3.1% |
| Net Income Margin | -64.7% | -88.2% | -46.3% | 15.4% | -1.0% | -16.4% |
| CAPEX, % of revenue | 0.9% | 0.1% | 0.0% | 0.0% | 0.0% | |
|
|---|
| Net Debt/EBITDA | | | | -2.2x | |
hopTo Inc ($HPTO) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 1 | 1 | 1 | | -16.3% | -6.4% | -18.9% | -33.8% |
| EBITDA | -0 | 0 | -0 | -0 | | | -32.4% | -105.7% | -164.3% |
| Net Income | -0 | 0 | -0 | -0 | | | | -111.2% | -124.2% |
Balance Sheet
|
|---|
Ratios
|
|---|
| Gross Margin | 96.5% | 95.6% | 95.8% | 93.0% | | -1.6% | -2.4% | -2.6% | -5.4% |
| EBITDA Margin | -4.0% | 4.9% | -2.3% | -19.1% | | 9.7% | -1.9% | -35.6% | -38.8% |
| Net Income Margin | -5.3% | 19.0% | -3.4% | -19.6% | | 10.3% | 20.4% | -28.1% | -73.3% |
Peers in Application Software
Below you can find hopTo 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 ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (151 companies) | -43.3% | 14.0% | 14.3% | 15.7% | 15.2% |
|---|
| hopTo Inc ($HPTO) | | -10.3% | -19.7% | -2.8% | -18.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| Aware, Inc. ($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% |
| Datawatch Corporation ($DWCH) | 79.0% | 79.7% | 83.6% | 88.3% | 88.2% |
| |
|---|
| Median (150 companies) | 62.8% | 61.7% | 63.8% | 64.4% | 65.7% |
|---|
| hopTo Inc ($HPTO) | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% |
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. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (152 companies) | -10.1% | -9.4% | -4.7% | -4.2% | -3.2% |
|---|
| hopTo Inc ($HPTO) | -87.0% | -85.2% | -44.7% | 11.8% | -4.1% |
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. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (153 companies) | 2.8% | 2.7% | 3.0% | 2.3% | 2.4% |
|---|
| hopTo Inc ($HPTO) | 0.9% | 0.1% | 0.0% | 0.0% | 0.0% |
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. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (179 companies) | -14.3% | -12.2% | -9.5% | -11.0% | -9.8% |
|---|
| hopTo Inc ($HPTO) | | | | | |
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 |
|---|
