Aware, Inc. revenue decreased on 7.3%
02/09/2021 • About Aware, Inc. (
$AWRE) • By InTwits
Aware, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Aware, Inc. is a company in decline: FY2020 revenue growth was -7.3%, 5 years revenue CAGR was -10.4%
- EBITDA Margin is declining: in FY2020 vs. -30.2% in FY2019 vs. 30.3% in FY2016
- The company has unprofitable business model: ROIC is -19.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 7.3%. Annual revenue decline showed slowdown in FY20Q4 - revenue surged on 39.8%.
Gross Margin increased on 3.2 pp from 89.7% to 92.8% in FY2020. SG&A as a % of Revenue jumped on 36.8 pp from 58.9% to 95.8% in FY2020. SG&A as a % of Revenue grew at 13.6 pp per annum in FY2016-FY2020.
Net Income margin increased slightly on 1.0 pp from -68.3% to -67.3% in FY2020. Net Income margin declined at -24.9 pp per annum in the last 5 years.
Return on investment
The company operates at negative ROIC (-19.0%) and ROE (-15.4%). ROIC dropped on 11.9 pp from -7.2% to -19.0% in FY2020. ROE decreased slightly on 0.90 pp from -14.5% to -15.4% in FY2020. ROIC declined at -6.9 pp per annum in the last 5 years. ROE declined at -6.2 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash dropped on 19.2%.
Management team
Aware, Inc.'s CEO is Robert Eckel "Bob". Robert Eckel "Bob" has 1 year tenure with the company. The company's CFO David B Barcelo has spent 10 months years with the company.
Financial and operational results
Aware, Inc. ($AWRE) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 21.566 | 16.282 | 16.131 | 12.204 | 11.309 | -7.3% |
| Gross Profit | 19.465 | 15.407 | 14.891 | 10.943 | 10.499 | -4.1% |
| SG&A | 7.428 | 7.410 | 7.474 | 7.193 | 10.830 | 50.6% |
| EBITDA | 6.530 | 2.328 | 0.824 | -3.688 | | |
| Net Income | 4.103 | 1.282 | 1.233 | -8.340 | -7.614 | |
Balance Sheet
|
|---|
| Cash | 51.913 | 51.608 | 51.612 | 47.742 | 38.565 | -19.2% |
| 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 | 0.087 | 0.082 | 0.206 | 0.111 | | |
Ratios
|
|---|
| Revenue growth | 9.9% | -24.5% | -0.9% | -24.3% | -7.3% | |
| EBITDA growth | 43.4% | -64.3% | -64.6% | -547.6% | | |
|
|---|
| Gross Margin | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% | 3.2% |
| EBITDA Margin | 30.3% | 14.3% | 5.1% | -30.2% | |
| SG&A, % of revenue | 34.4% | 45.5% | 46.3% | 58.9% | 95.8% | 36.8% |
| Net Income Margin | 19.0% | 7.9% | 7.6% | -68.3% | -67.3% | 1.0% |
| CAPEX, % of revenue | 0.4% | 0.5% | 1.3% | 0.9% | | |
|
|---|
| ROIC | 10.4% | 3.1% | 0.6% | -7.2% | -19.0% | -11.9% |
| ROE | 7.2% | 2.2% | 2.0% | -14.5% | -15.4% | -0.9% |
| Net Debt/EBITDA | -7.9x | -22.2x | -62.6x | | |
Aware, Inc. ($AWRE) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 2 | 2 | 3 | | -5.7% | -37.3% | -17.8% | 39.8% |
| Net Income | -1 | -3 | -2 | -2 | | -564.9% | - | - | - |
Balance Sheet
|
|---|
| Cash | 47 | 45 | 42 | 39 | | -7.1% | -8.2% | -11.9% | -19.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 95.2% | 91.3% | 94.0% | 90.5% | | 9.0% | 2.0% | 2.8% | -3.2% |
| Net Income Margin | -30.1% | -166.2% | -71.8% | -47.8% | | -36.2% | -135.0% | -66.8% | 257.5% |
Peers in Application Software
Below we provide Aware, 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
| AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
| Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
| Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
| Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 15.7% | 15.2% | 19.5% | 14.7% |
|---|
| Aware, Inc. ($AWRE) | - | -24.5% | -0.9% | -24.3% | -7.3% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
| Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
| Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
| Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| Mitek Systems, Inc. ($MITK) | 90.2% | 91.1% | 86.3% | 85.5% | 87.0% |
| |
|---|
| Median (89 companies) | 63.8% | 64.4% | 65.3% | 67.9% | 69.4% |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
| j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
| Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
| Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
| SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (90 companies) | -5.3% | -4.2% | -3.3% | 4.5% | 7.2% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
| Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
| Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
| LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
| PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (88 companies) | 3.0% | 2.3% | 2.4% | 3.0% | 2.6% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
| Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
| Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
| Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
| Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.8% | -11.8% | -10.6% | -4.2% | -1.8% |
|---|
| Aware, Inc. ($AWRE) | 10.4% | 3.1% | 0.6% | -7.2% | -19.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
| Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
| Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
| Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
| Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
| |
|---|
| Median (54 companies) | -0.9x | -0.8x | -0.6x | 0.4x | 0.2x |
|---|
