Accelerize Inc reports 21.8% CAPEX decline in 2018 and 9.9% Revenue decline
04/16/2019 • About Accelerize Inc (
$ACLZ) • By InTwits
Accelerize Inc reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -37.9%
- Accelerize 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 -16.0%
- Accelerize Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.5%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: $0m in FY2018, $0m in FY2017, $1m in FY2016, $1m in FY2015, $3m in FY2014
- The company has unprofitable business model: ROIC is -1,038.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Accelerize Inc's Revenue decreased on 9.9%. Revenue decline showed acceleration in 18Q4 - it was 17.1% YoY. Revenue decline was accelerating on average at -18.9 pp per annum in 2014-2018. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from -35.1% to -31.0% in 2018.
Gross Margin decreased on 4.2 pp from 62.4% to 58.2% in 2018. Gross Margin stuck to a declining trend at -4.1 pp per annum in the last 5 years. SG&A as a % of Revenue increased on 9.3 pp from 48.7% to 58.0% in 2018. During the last 5 years SG&A as a % of Revenue bottomed in 2017 at 48.7%.
Net Income margin dropped on 42.5 pp from -10.1% to -52.5% in 2018.
Investments (CAPEX, working capital and M&A)
Accelerize Inc's CAPEX/Revenue was 6.4% in 2018. CAPEX/Revenue decreased slightly on 1.0 pp from 7.4% in 2015 to 6.4% in 2018. It's average CAPEX/Revenue for the last three years was 7.4%.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2018. Debt jumped on 54.6% while cash dropped on 83.6%.
Accelerize Inc has short term refinancing risk: cash is only 0.8% of short term debt.
Financial and operational results
FY ended 12/31/2018
Accelerize Inc ($ACLZ) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 16.460 | 21.397 | 23.753 | 24.105 | 21.730 | -9.9% |
| Gross Profit | 12.348 | 14.903 | 15.523 | 15.038 | 12.654 | -15.9% |
| SG&A | 13.084 | 16.359 | 11.951 | 11.728 | 12.600 | 7.4% |
| EBITDA | -1.900 | -4.747 | -1.890 | -0.398 | -8.233 | |
| Net Income | -3.253 | -6.264 | -3.852 | -2.424 | -11.417 | |
Balance Sheet
|
|---|
| Cash | 1.131 | 0.908 | 1.680 | 0.167 | 0.027 | -83.6% |
| Short Term Debt | 0.000 | 4.598 | 2.039 | 3.056 | 3.399 | 11.2% |
| Long Term Debt | 2.900 | 0.000 | 4.588 | 4.671 | 8.548 | 83.0% |
Cash flow
|
|---|
| Capex | 1.323 | 1.589 | 2.018 | 1.777 | 1.390 | -21.8% |
Ratios
|
|---|
| Revenue growth | 70.5% | 30.0% | 11.0% | 1.5% | -9.9% | |
| EBITDA growth | 2,574.1% | 149.9% | -60.2% | -79.0% | 1,970.4% | |
|
|---|
| Gross Margin | 75.0% | 69.6% | 65.4% | 62.4% | 58.2% | -4.2% |
| EBITDA Margin | -11.5% | -22.2% | -8.0% | -1.6% | -37.9% | -36.2% |
| SG&A, % of revenue | 79.5% | 76.5% | 50.3% | 48.7% | 58.0% | 9.3% |
| Net Income Margin | -19.8% | -29.3% | -16.2% | -10.1% | -52.5% | -42.5% |
| CAPEX, % of revenue | 8.0% | 7.4% | 8.5% | 7.4% | 6.4% | -1.0% |
|
|---|
| ROIC | -106.4% | -174.1% | -84.6% | -36.6% | -1,038.8% | -1,002.2% |
| ROE | -225.5% | | | | | |
Accelerize Inc ($ACLZ) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 6 | 5 | 5 | 5 | | 0.6% | -10.0% | -12.7% | -17.1% |
| EBITDA | -1 | -1 | -1 | -6 | | -235.6% | | | |
| Net Income | -1 | -2 | -2 | -7 | | | | | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 2 | 0 | | 56.9% | 748.5% | 184.8% | -83.6% |
| Short Term Debt | 3 | 3 | 4 | 3 | | 46.0% | 19.4% | -2.1% | 11.2% |
| Long Term Debt | 7 | 7 | 9 | 9 | | 51.5% | 65.0% | 84.1% | 83.0% |
Ratios
|
|---|
| Gross Margin | 60.7% | 54.3% | 61.4% | 56.2% | | -13.3% | -6.3% | 6.7% | -4.3% |
| EBITDA Margin | -8.9% | -14.8% | -22.1% | -113.5% | | -15.6% | -12.7% | -19.4% | -105.2% |
| Net Income Margin | -21.0% | -29.0% | -37.1% | -131.4% | | -20.0% | -18.7% | -25.6% | -114.1% |
Peers in Application Software
Below you can find Accelerize 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 ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (152 companies) | | 13.5% | 14.3% | 15.7% | 15.2% |
|---|
| Accelerize Inc ($ACLZ) | | 30.0% | 11.0% | 1.5% | -9.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| hopTo Inc ($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. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (151 companies) | 62.8% | 61.7% | 63.8% | 64.6% | 66.0% |
|---|
| Accelerize Inc ($ACLZ) | 75.0% | 69.6% | 65.4% | 62.4% | 58.2% |
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. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (153 companies) | -10.1% | -9.4% | -4.7% | -4.2% | -3.3% |
|---|
| Accelerize Inc ($ACLZ) | -11.5% | -22.2% | -8.0% | -1.6% | -37.9% |
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. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (154 companies) | 2.8% | 2.7% | 2.9% | 2.3% | 2.4% |
|---|
| Accelerize Inc ($ACLZ) | 8.0% | 7.4% | 8.5% | 7.4% | 6.4% |
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. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (180 companies) | -14.2% | -11.2% | -9.2% | -10.2% | -9.8% |
|---|
| Accelerize Inc ($ACLZ) | -106.4% | -174.1% | -84.6% | -36.6% | -1,038.8% |
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 |
|---|
