ShotSpotter, Inc. reports 12.2% revenue growth in FY2020 and 1.3 pp EBITDA Margin decline from 16.9% to 15.6%
02/25/2021 • About ShotSpotter, Inc. (
$SSTI) • By InTwits
ShotSpotter, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ShotSpotter, Inc. is a fast growth stock: FY2020 revenue growth was 12.2%, 5 year revenue CAGR was 31.1% at FY2020 ROIC 4.2%
- EBITDA Margin is quite volatile: 15.6% in FY2020, 16.9% in FY2019, 3.9% in FY2018, -5.1% in FY2017, -15.6% in FY2016
- The company has potentially unprofitable business model: ROIC is 4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
ShotSpotter, Inc.'s Revenue surged on 12.2%. Revenue growth showed acceleration in FY20Q4 - it increased 15.9% YoY. During FY2016-FY2020 Revenue growth topped in FY2017 at 53.2% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from -25.7% to -27.4% in FY2020. EBITDA Margin followed a growing trend at 8.4 pp per annum in the last 5 years.
Gross Margin decreased slightly on 0.75 pp from 59.7% to 59.0% in FY2020. Gross Margin grew at 4.9 pp per annum in FY2016-FY2020. SG&A as a % of Revenue increased slightly on 1.2 pp from 42.7% to 43.9% in FY2020.
Net Income margin decreased slightly on 1.7 pp from 4.4% to 2.7% in FY2020. Net Income margin stuck to a growing trend at 14.0 pp per annum in FY2016-FY2020.
Return on investment
The company operates at low ROIC (4.2%) and ROE (4.0%). ROIC decreased on 2.9 pp from 7.1% to 4.2% in FY2020. ROE decreased on 4.1 pp from 8.1% to 4.0% in FY2020.
Leverage (Debt)
The company paid down all the debt in FY2020. Cash dropped on 34.7%.
Valuation and dividends
The company's trades at EV/EBITDA 53.0x and P/E 321.1x.
Management team
ShotSpotter, Inc.'s CEO is Ralph A Clark. Ralph A Clark has 10 years tenure with the company. ShotSpotter, Inc.'s CFO is Alan R Stewart. Alan R Stewart has 4 years tenure at the company.
Financial and operational results
ShotSpotter, Inc. ($SSTI) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 15.507 | 23.763 | 34.753 | 40.752 | 45.734 | 12.2% |
| Gross Profit | 5.958 | 12.393 | 19.221 | 24.343 | 26.975 | 10.8% |
| SG&A | 6.837 | 11.774 | 16.802 | 17.404 | 20.068 | 15.3% |
| EBITDA | -2.421 | -1.212 | 1.349 | 6.877 | 7.113 | 3.4% |
| Net Income | -6.860 | -9.980 | -2.725 | 1.798 | 1.225 | -31.9% |
Balance Sheet
|
|---|
| Cash | 3.865 | 19.567 | 10.218 | 24.550 | 16.043 | -34.7% |
| Short Term Debt | 0.667 | 0.000 | 0.000 | 0.302 | 0.000 | -100.0% |
| Long Term Debt | 11.012 | 0.000 | 0.000 | 0.296 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 4.476 | 6.430 | 8.444 | 4.823 | | |
Ratios
|
|---|
| Revenue growth | 31.5% | 53.2% | 46.2% | 17.3% | 12.2% | |
| EBITDA growth | -25.6% | -49.9% | -211.3% | 409.8% | 3.4% | |
|
|---|
| Gross Margin | 38.4% | 52.2% | 55.3% | 59.7% | 59.0% | -0.8% |
| EBITDA Margin | -15.6% | -5.1% | 3.9% | 16.9% | 15.6% | -1.3% |
| SG&A, % of revenue | 44.1% | 49.5% | 48.3% | 42.7% | 43.9% | 1.2% |
| Net Income Margin | -44.2% | -42.0% | -7.8% | 4.4% | 2.7% | -1.7% |
| CAPEX, % of revenue | 28.9% | 27.1% | 24.3% | 11.8% | | |
|
|---|
| ROIC | | -99.5% | -17.5% | 7.1% | 4.2% | -2.9% |
| ROE | | | -18.6% | 8.1% | 4.0% | -4.1% |
| Net Debt/EBITDA | | | -7.6x | -3.5x | -2.3x | 1.2x |
ShotSpotter, Inc. ($SSTI) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 10 | 11 | 11 | 13 | | 9.0% | 9.9% | 13.7% | 15.9% |
| EBITDA | 1 | 2 | 2 | 1 | | 32.0% | 45.1% | 14.3% | -46.3% |
| Net Income | 0 | 1 | 1 | -0 | | - | 123.8% | 26.9% | -116.6% |
Balance Sheet
|
|---|
| Cash | 29 | 26 | 29 | 16 | | -2.9% | -5.9% | 9.7% | -34.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | | 9.6% | 30.8% | 28.7% | -100.0% |
| Long Term Debt | 0 | 1 | 0 | 0 | | -61.7% | 15.9% | 12.1% | -100.0% |
Ratios
|
|---|
| Gross Margin | 58.5% | 61.4% | 56.8% | 59.2% | | 0.2% | 3.1% | -3.0% | -3.1% |
| EBITDA Margin | 12.9% | 20.0% | 17.3% | 11.0% | | 2.2% | 4.9% | 0.1% | -12.7% |
| Net Income Margin | 0.1% | 7.7% | 5.0% | -1.7% | | 3.9% | 3.9% | 0.5% | -13.9% |
Peers in Application Software
Below we provide ShotSpotter, 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. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 14.8% | 15.1% | 19.5% | 14.7% |
|---|
| ShotSpotter, Inc. ($SSTI) | - | 53.2% | 46.2% | 17.3% | 12.2% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
| Alteryx, Inc. ($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. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (89 companies) | 64.2% | 64.6% | 66.0% | 68.4% | 70.6% |
|---|
| ShotSpotter, Inc. ($SSTI) | 38.4% | 52.2% | 55.3% | 59.7% | 59.0% |
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. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -4.7% | -3.3% | -3.3% | 2.7% | 6.8% |
|---|
| ShotSpotter, Inc. ($SSTI) | -15.6% | -5.1% | 3.9% | 16.9% | 15.6% |
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. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (88 companies) | 2.9% | 2.3% | 2.4% | 2.9% | 2.6% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($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) | -9.5% | -10.2% | -9.8% | -4.5% | -2.2% |
|---|
| ShotSpotter, Inc. ($SSTI) | - | -99.5% | -17.5% | 7.1% | 4.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($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 (53 companies) | -0.9x | -0.8x | -0.6x | 0.4x | 0.3x |
|---|
| ShotSpotter, Inc. ($SSTI) | - | - | -7.6x | -3.5x | -2.3x |
