Weyland Tech Inc revenue surged on 45.5%
04/15/2019 • About Weyland Tech Inc (
$WEYL) • By InTwits
Weyland Tech Inc reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Weyland Tech Inc is a fast growth stock: 2018 revenue growth was 45.5%, 5 year revenue CAGR was 59.4% at 2018 ROIC -93.3%
- The company operates at negative EBITDA Margin: -16.0%
- Weyland Tech Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.0%. Average EBITDA Margin for the same period was -5.7%
- The company has unprofitable business model: ROIC is -93.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.3x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 45.5%. Revenue growth showed slowdown in 18Q4 - it was 2.2% YoY.
Gross Margin decreased on 9.9 pp from 27.7% to 17.7% in 2018. During the last 5 years Gross Margin topped in 2016 at 39.6% and was declining since that time. SG&A as a % of Revenue showed almost no change in 2018.
Net Income margin dropped on 17.6 pp from -0.48% to -18.1% in 2018. During the last 5 years Net Income margin topped in 2015 at 28.7% and was declining since that time.
Return on investment
The company operates at negative ROIC (-93.3%) and ROE (-98.1%). ROIC dropped on 98.6 pp from 5.3% to -93.3% in 2018. ROE dropped on 95.5 pp from -2.6% to -98.1% in 2018. During the last 5 years ROIC topped in 2015 at 436% and was declining since that time.
Leverage (Debt)
The company has no debt. Cash dropped on 30.8%.
Financial and operational results
FY ended 12/31/2018
Weyland Tech Inc ($WEYL) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 2.484 | 2.554 | 12.942 | 15.578 | 22.667 | 45.5% |
| Gross Profit | 0.772 | 1.002 | 5.124 | 4.310 | 4.023 | -6.7% |
| SG&A | | 0.268 | 0.989 | 1.937 | 2.880 | 48.7% |
| EBITDA | -0.256 | | 0.689 | | -3.630 | |
| Net Income | -0.256 | 0.734 | 0.567 | -0.074 | -4.099 | |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.832 | 1.004 | 1.056 | 0.731 | -30.8% |
| 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 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | 12.8% | 2.8% | 406.7% | 20.4% | 45.5% | |
| EBITDA growth | -79.0% | | | | | |
|
|---|
| Gross Margin | 31.1% | 39.2% | 39.6% | 27.7% | 17.7% | -9.9% |
| EBITDA Margin | -10.3% | | 5.3% | | -16.0% |
| SG&A, % of revenue | | 10.5% | 7.6% | 12.4% | 12.7% | 0.3% |
| Net Income Margin | -10.3% | 28.7% | 4.4% | -0.5% | -18.1% | -17.6% |
|
|---|
| ROIC | -1,273.7% | 436.3% | 21.8% | 5.3% | -93.3% | -98.6% |
| ROE | | | 36.6% | -2.6% | -98.1% | -95.5% |
| Net Debt/EBITDA | | | -1.5x | | |
Weyland Tech Inc ($WEYL) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 5 | 8 | 5 | | 47.3% | 28.0% | 120.5% | 2.2% |
| EBITDA | -0 | -1 | -2 | -0 | | -127.1% | | | |
| Net Income | -1 | -1 | -2 | -1 | | -134.8% | | | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 1 | | -25.2% | -38.1% | 23.6% | -30.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 87.7% | 87.7% | 87.7% | -206.5% | | 24.4% | 99.2% | 73.8% | -251.9% |
| EBITDA Margin | -10.0% | -20.6% | -22.9% | -6.0% | | -64.5% | -2.9% | -22.5% | -6.0% |
| Net Income Margin | -12.1% | -22.5% | -23.7% | -10.1% | | -63.5% | -2.9% | -21.0% | 3.5% |
Peers in Application Software
Below we provide Weyland Tech Inc benchmarking against other companies in Application Software 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 |
|---|
| 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 ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (152 companies) | | 14.0% | 13.6% | 14.8% | 15.1% |
|---|
| Weyland Tech Inc ($WEYL) | | 2.8% | 406.7% | 20.4% | 45.5% |
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. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (151 companies) | 63.4% | 61.9% | 64.2% | 64.6% | 66.0% |
|---|
| Weyland Tech Inc ($WEYL) | 31.1% | 39.2% | 39.6% | 27.7% | 17.7% |
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. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (153 companies) | -10.2% | -10.7% | -5.3% | -3.7% | -3.3% |
|---|
| Weyland Tech Inc ($WEYL) | -10.3% | | 5.3% | | -16.0% |
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. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (154 companies) | 2.8% | 2.7% | 3.0% | 2.3% | 2.4% |
|---|
| Weyland Tech Inc ($WEYL) | 0.0% | 0.0% | 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. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (180 companies) | -14.2% | -13.1% | -9.8% | -11.8% | -9.8% |
|---|
| Weyland Tech Inc ($WEYL) | -1,273.7% | 436.3% | 21.8% | 5.3% | -93.3% |
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 |
|---|
