IGEN Networks Corp revenue dropped on 11.0% and EBITDA Margin dropped on 11.5 pp from -83.3% to -94.8%
04/16/2019 • About IGEN Networks Corp (
$IGEN) • By InTwits
IGEN Networks Corp reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -94.8%
- IGEN Networks Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 0.0% while average EBITDA Margin was -91.0% for the sames years
- IGEN Networks Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 11.0%. Revenue decline showed acceleration in 18Q4 - it was 58.9% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.8 pp from -48.9% to -39.1% in FY2018.
Gross Margin surged on 10.2 pp from 35.9% to 46.1% in 2018. During 2014-2018 Gross Margin bottomed in 2015 at 30.8% and was growing since that time. SG&A as a % of Revenue jumped on 43.8 pp from 48.2% to 92.1% in 2018. During 2014-2018 SG&A as a % of Revenue bottomed in 2015 at 19.0% and was growing since that time.
Net Income margin showed almost no change in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 IGEN Networks Corp had CAPEX/Revenue of 0.062%. CAPEX/Revenue showed almost no change from 2015 to 2018.
Leverage (Debt)
The company paid down all the debt in 2018. Cash surged on 98.4%.
Financial and operational results
FY ended 12/31/2018
IGEN Networks Corp ($IGEN) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 0.725 | 1.036 | 1.143 | 1.347 | 1.199 | -11.0% |
| Gross Profit | 0.298 | 0.319 | 0.395 | 0.483 | 0.552 | 14.3% |
| SG&A | 0.188 | 0.196 | 0.223 | 0.650 | 1.104 | 69.9% |
| EBITDA | -0.590 | -1.301 | -0.808 | -1.122 | -1.137 | |
| Net Income | -0.748 | -1.613 | -0.837 | -1.298 | -1.153 | |
Balance Sheet
|
|---|
| Cash | 0.056 | 0.034 | 0.040 | 0.029 | 0.057 | 98.4% |
| Short Term Debt | 0.053 | 0.116 | 0.080 | 0.128 | 0.000 | -100.0% |
| Long Term Debt | 0.080 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.002 | 0.003 | 0.000 | 0.000 | 0.001 | |
Ratios
|
|---|
| Revenue growth | 398.5% | 42.9% | 10.4% | 17.8% | -11.0% | |
| EBITDA growth | 16.4% | 120.3% | -37.9% | 38.8% | 1.3% | |
|
|---|
| Gross Margin | 41.2% | 30.8% | 34.5% | 35.9% | 46.1% | 10.2% |
| EBITDA Margin | -81.5% | -125.6% | -70.7% | -83.3% | -94.8% | -11.5% |
| SG&A, % of revenue | 25.9% | 19.0% | 19.5% | 48.2% | 92.1% | 43.8% |
| Net Income Margin | -103.3% | -155.7% | -73.2% | -96.3% | -96.2% | 0.2% |
| CAPEX, % of revenue | 0.3% | 0.3% | 0.0% | 0.0% | 0.1% | |
|
|---|
| ROIC | -110.7% | -333.8% | | | | |
| ROE | -169.5% | | | | | |
IGEN Networks Corp ($IGEN) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 0 | 0 | | 14.9% | -20.3% | 20.0% | -58.9% |
| Net Income | -0 | -0 | -0 | -0 | | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | 479.6% | 386.6% | -81.5% | 98.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | | 125.5% | 138.0% | 25.1% | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | -100.0% | -100.0% | |
Ratios
|
|---|
| Gross Margin | 54.8% | 36.2% | 70.0% | -28.0% | | 13.5% | -3.2% | 33.2% | -52.5% |
| Net Income Margin | -112.0% | -69.2% | -46.4% | -271.1% | | -39.5% | 6.7% | 35.7% | -108.1% |
Peers in Communications
Below you can find IGEN Networks Corp benchmarking vs. other companies in Communications 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tucows Inc ($TCX) | | 16.3% | 10.6% | 73.5% | 5.0% |
| |
|---|
| Median (1 company) | -3.0% | 8.4% | 7.5% | 73.5% | 5.0% |
|---|
| IGEN Networks Corp ($IGEN) | | 42.9% | 10.4% | 17.8% | -11.0% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tucows Inc ($TCX) | 27.5% | 30.3% | 33.2% | 25.7% | 28.0% |
| |
|---|
| Median (1 company) | 34.7% | 33.7% | 32.8% | 25.7% | 28.0% |
|---|
| IGEN Networks Corp ($IGEN) | 41.2% | 30.8% | 34.5% | 35.9% | 46.1% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tucows Inc ($TCX) | 7.6% | 11.5% | 14.7% | 11.9% | 12.8% |
| |
|---|
| Median (1 company) | 7.6% | 9.4% | 10.8% | 11.9% | 12.8% |
|---|
| IGEN Networks Corp ($IGEN) | -81.5% | -125.6% | -70.7% | -83.3% | -94.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tucows Inc ($TCX) | 0.5% | 1.7% | 4.2% | 3.9% | 8.1% |
| |
|---|
| Median (1 company) | 0.5% | 1.7% | 3.1% | 3.9% | 8.1% |
|---|
| IGEN Networks Corp ($IGEN) | 0.3% | 0.3% | 0.0% | 0.0% | 0.1% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tucows Inc ($TCX) | 27.4% | 51.4% | 58.3% | 25.6% | 18.0% |
| |
|---|
| Median (1 company) | 14.2% | 13.7% | 34.2% | 25.6% | 18.0% |
|---|
| IGEN Networks Corp ($IGEN) | -110.7% | -333.8% | | | |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tucows Inc ($TCX) | -0.7x | -0.2x | -0.2x | 1.5x | 1.2x |
| |
|---|
| Median (1 company) | 1.9x | 2.6x | 4.7x | 1.5x | 1.2x |
|---|
