Intrusion Inc Net Income dropped on 246% and EBITDA Margin dropped on 127 pp from 37.6% to -89.3%
02/25/2021 • About Intrusion Inc (
$INTZ) • By InTwits
Intrusion Inc reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -89.3%
- Intrusion Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: $0m in 2020, $0m in 2019, $0m in 2018, $0m in 2017, $0m in 2016
- The company has unprofitable business model: ROIC is -56.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Intrusion Inc's Revenue dropped on 51.5%. Annual revenue decline showed slowdown in 20Q4 - revenue dropped on 38.6%. During the last 5 years Revenue growth topped in 2018 at 49.8% and was decelerating since that time. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 127 pp from 37.6% to -89.3% in 2020. During 2016-2020 EBITDA Margin topped in 2019 at 37.6%.
Gross Margin decreased slightly on 1.8 pp from 60.8% to 59.1% in 2020. SG&A as a % of Revenue surged on 82.1 pp from 18.2% to 100% in 2020. During 2016-2020 SG&A as a % of Revenue bottomed in 2019 at 18.2%.
Net Income margin dropped on 131 pp from 32.7% to -98.5% in 2020. During 2016-2020 Net Income margin topped in 2019 at 32.7%.
Investments (CAPEX, working capital and M&A)
In 2020 Intrusion Inc had CAPEX/Revenue of 4.8%. CAPEX/Revenue increased on 4.5 pp from 0.29% in 2017 to 4.8% in 2020. It's average level of CAPEX/Revenue for the last three years was 2.9%. CAPEX as a % of Revenue followed a growing trend at 0.97 pp per annum in 2016-2020.
Return on investment
The company operates at negative ROIC (-56.1%) and ROE (-80.4%). ROIC dropped on 204 pp from 148% to -56.1% in 2020.
Leverage (Debt)
Debt level is -12.2x Net Debt / EBITDA and Debt / EBITDA. Debt surged on 42.8% while cash surged on 401%.
Intrusion Inc has no short term refinancing risk: cash is higher than short term debt (3,288.2%).
Financial and operational results
FY ended 12/31/2020
Intrusion Inc ($INTZ) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 6.102 | 6.862 | 10.276 | 13.643 | 6.619 | -51.5% |
| Gross Profit | 3.919 | 4.038 | 6.429 | 8.301 | 3.910 | -52.9% |
| SG&A | 2.827 | 2.625 | 2.716 | 2.480 | 6.636 | 167.6% |
| EBITDA | -1.113 | -0.543 | 2.609 | 5.124 | -5.912 | -215.4% |
| Net Income | -1.552 | -0.030 | 2.287 | 4.465 | -6.518 | -246.0% |
Balance Sheet
|
|---|
| Cash | 0.064 | 0.224 | 1.652 | 3.334 | 16.704 | 401.0% |
| Short Term Debt | 0.139 | 0.044 | 0.058 | 0.327 | 0.508 | 55.4% |
| Long Term Debt | 0.061 | 0.017 | 1.879 | 1.336 | 1.867 | 39.7% |
Cash flow
|
|---|
| Capex | 0.047 | 0.020 | 0.202 | 0.260 | 0.320 | 23.1% |
Ratios
|
|---|
| Revenue growth | -10.6% | 12.5% | 49.8% | 32.8% | -51.5% | |
| EBITDA growth | 33.0% | -51.2% | -580.5% | 96.4% | -215.4% | |
|
|---|
| Gross Margin | 64.2% | 58.8% | 62.6% | 60.8% | 59.1% | -1.8% |
| EBITDA Margin | -18.2% | -7.9% | 25.4% | 37.6% | -89.3% | -126.9% |
| SG&A, % of revenue | 46.3% | 38.3% | 26.4% | 18.2% | 100.3% | 82.1% |
| Net Income Margin | -25.4% | -0.4% | 22.3% | 32.7% | -98.5% | -131.2% |
| CAPEX, % of revenue | 0.8% | 0.3% | 2.0% | 1.9% | 4.8% | 2.9% |
|
|---|
| ROIC | | | | 147.9% | -56.1% | -204.0% |
| ROE | | | | | -80.4% | |
| Net Debt/EBITDA | | | 0.1x | -0.3x | |
Intrusion Inc ($INTZ) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 2 | | -43.7% | -58.8% | -58.9% | -38.6% |
| EBITDA | -0 | -1 | -1 | -4 | | -130.5% | -130.4% | -179.4% | -802.4% |
| Net Income | -0 | -1 | -1 | -4 | | -149.1% | -140.7% | -196.2% | -1,422.6% |
Balance Sheet
|
|---|
| Cash | 3 | 3 | 2 | 17 | | 238.3% | 94.4% | -28.7% | 401.0% |
| Short Term Debt | 0 | 0 | 0 | 1 | | 9.2% | 3.1% | 1.9% | 55.4% |
| Long Term Debt | 1 | 1 | 1 | 2 | | -20.1% | -21.8% | -6.1% | 39.7% |
Ratios
|
|---|
| Gross Margin | 58.4% | 60.7% | 58.9% | 58.2% | | -1.4% | 0.2% | -3.1% | -2.8% |
| EBITDA Margin | -18.7% | -34.9% | -79.8% | -236.1% | | -53.2% | -82.1% | -121.2% | -256.7% |
| Net Income Margin | -25.9% | -43.2% | -88.7% | -248.6% | | -55.6% | -86.9% | -126.7% | -260.2% |
Peers in Systems Software
Below we provide Intrusion Inc benchmarking against other companies in Systems 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 |
|---|
| Zscaler, Inc. ($ZS) | - | 56.5% | 51.3% | 59.2% | 42.4% |
| ServiceNow, Inc. ($NOW) | - | 38.0% | 36.0% | 32.6% | 30.6% |
| SailPoint Technologies Holdings, Inc. ($SAIL) | - | 40.5% | 33.8% | 15.9% | 26.6% |
| Rapid7, Inc. ($RPD) | - | 27.6% | 21.5% | 33.9% | 25.9% |
| Tenable Holdings, Inc. ($TENB) | - | 50.9% | 42.4% | 32.6% | 24.2% |
| |
|---|
| Median (23 companies) | 12.9% | 16.6% | 19.0% | 15.9% | 15.1% |
|---|
| Intrusion Inc ($INTZ) | - | 12.5% | 49.8% | 32.8% | -51.5% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Check Point Software Technologies Ltd. ($CHKP) | 88.5% | 88.6% | 89.6% | 89.5% | 89.4% |
| Progress Software Corporation ($PRGS) | 83.8% | 82.6% | 83.1% | 81.8% | 86.0% |
| Varonis Systems, Inc. ($VRNS) | 90.5% | 90.4% | 89.8% | 86.2% | 84.9% |
| Vmware, Inc. ($VMW) | 85.2% | - | 85.5% | 83.9% | 83.4% |
| Tenable Holdings, Inc. ($TENB) | 88.6% | 86.4% | 83.9% | 82.8% | 82.4% |
| |
|---|
| Median (23 companies) | 73.6% | 74.1% | 75.0% | 76.6% | 77.8% |
|---|
| Intrusion Inc ($INTZ) | 64.2% | 58.8% | 62.6% | 60.8% | 59.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Check Point Software Technologies Ltd. ($CHKP) | 49.8% | 50.7% | 48.8% | 46.0% | 45.1% |
| Qualys, Inc. ($QLYS) | 23.8% | 25.1% | 28.4% | 36.5% | 40.3% |
| SolarWinds Corporation ($SWI) | -8.0% | 44.0% | 44.8% | 44.7% | 39.8% |
| Progress Software Corporation ($PRGS) | 2.4% | 28.6% | 32.9% | 23.4% | 34.4% |
| Fortinet, Inc. ($FTNT) | 7.2% | 11.1% | 15.9% | 19.8% | 23.9% |
| |
|---|
| Median (23 companies) | -8.0% | -3.6% | -4.7% | -1.4% | 3.0% |
|---|
| Intrusion Inc ($INTZ) | -18.2% | -7.9% | 25.4% | 37.6% | -89.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Zscaler, Inc. ($ZS) | 7.8% | 6.5% | 8.0% | 9.5% | 12.0% |
| ServiceNow, Inc. ($NOW) | 7.6% | 7.8% | 8.6% | 7.7% | 9.3% |
| Qualys, Inc. ($QLYS) | 11.7% | 16.4% | 8.2% | 8.6% | 8.3% |
| Zuora, Inc. ($ZUO) | 3.4% | 3.3% | 2.8% | 5.7% | 7.8% |
| Proofpoint, Inc. ($PFPT) | 9.2% | 9.0% | 4.1% | 4.0% | 6.9% |
| |
|---|
| Median (23 companies) | 2.1% | 2.4% | 2.6% | 3.8% | 2.8% |
|---|
| Intrusion Inc ($INTZ) | 0.8% | 0.3% | 2.0% | 1.9% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Fortinet, Inc. ($FTNT) | 5.3% | 15.0% | 28.0% | 29.0% | 46.3% |
| Check Point Software Technologies Ltd. ($CHKP) | 24.7% | 26.8% | 25.5% | 24.2% | 25.6% |
| Qualys, Inc. ($QLYS) | 13.7% | 12.3% | 14.3% | 18.7% | 22.0% |
| Vmware, Inc. ($VMW) | 15.9% | - | - | 18.1% | 19.6% |
| Progress Software Corporation ($PRGS) | -4.9% | 13.5% | 18.5% | 7.6% | 16.0% |
| |
|---|
| Median (23 companies) | -2.1% | -4.4% | -1.6% | -6.4% | -6.4% |
|---|
| Intrusion Inc ($INTZ) | - | - | - | 147.9% | -56.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SolarWinds Corporation ($SWI) | - | 6.2x | 4.1x | 4.4x | 4.1x |
| Proofpoint, Inc. ($PFPT) | - | - | - | -27.4x | 2.5x |
| Progress Software Corporation ($PRGS) | -7.5x | -0.1x | 0.1x | 1.5x | 2.1x |
| Vmware, Inc. ($VMW) | -0.7x | - | -0.8x | 0.3x | 1.5x |
| CyberArk Software Ltd. ($CYBR) | -4.1x | -5.7x | -4.5x | -3.6x | 0.9x |
| |
|---|
| Median (12 companies) | -1.2x | -0.6x | -0.5x | -0.3x | 0.4x |
|---|
