Qumu Corporation reports 14.6% revenue growth in 2020 and 3.5 pp EBITDA Margin decline from -12.8% to -16.3%
03/04/2021 • About Qumu Corporation (
$QUMU) • By InTwits
Qumu Corporation reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -16.3%
- Qumu Corporation motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 was 0.0% while average EBITDA Margin was -19.0% for the sames years
- Qumu Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has unprofitable business model: ROIC is -74.6%
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 jumped on 14.6%. Revenue growth showed slowdown in 20Q4 - it was 10.5% YoY. During the last 5 years Revenue growth bottomed in 2018 at -11.2% and was accelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from -12.8% to -16.3% in 2020. EBITDA Margin stuck to a growing trend at 2.6 pp per annum in 2016-2020.
Gross Margin decreased slightly on 0.90 pp from 72.2% to 71.3% in 2020. Gross Margin grew at 2.9 pp per annum in 2016-2020. SG&A as a % of Revenue increased on 4.6 pp from 61.1% to 65.7% in 2020. During 2016-2020 SG&A as a % of Revenue bottomed in 2019 at 61.1%.
Net Income margin decreased on 6.2 pp from -25.4% to -31.6% in 2020.
Investments (CAPEX, working capital and M&A)
Qumu Corporation's CAPEX/Revenue was 0.44% in 2020. CAPEX/Revenue showed almost no change from 2017 to 2020. It's average level of CAPEX/Revenue for the last three years was 0.54%.
Return on investment
The company operates at negative ROIC (-74.6%) and ROE (-140.5%). ROIC dropped on 30.9 pp from -43.7% to -74.6% in 2020. ROE dropped on 65.7 pp from -74.9% to -141% in 2020.
Leverage (Debt)
Debt level is -2.2x Net Debt / EBITDA and Debt / EBITDA. Debt surged on 47.9% while cash jumped on 11.6%.
Qumu Corporation has no short term refinancing risk: cash is higher than short term debt (403.9%).
Management team
Qumu Corporation's CEO is Tj Kennedy. Tj Kennedy has 8 months tenure with the company. The company's CFO David Gallagher Ristow "Dave" has spent 3 years with the company.
Financial and operational results
FY ended 12/31/2020
Qumu Corporation ($QUMU) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 31.682 | 28.167 | 25.013 | 25.362 | 29.072 | 14.6% |
| Gross Profit | 19.322 | 17.905 | 16.520 | 18.303 | 20.719 | 13.2% |
| SG&A | 21.251 | 18.593 | 15.516 | 15.496 | 19.114 | 23.3% |
| EBITDA | -8.058 | -5.826 | -4.547 | -3.258 | -4.745 | |
| Net Income | -11.175 | -11.724 | -3.617 | -6.443 | -9.200 | |
Balance Sheet
|
|---|
| Cash | 10.364 | 7.690 | 8.636 | 10.639 | 11.878 | 11.6% |
| Short Term Debt | 0.508 | 1.047 | 0.152 | 0.744 | 2.941 | 295.3% |
| Long Term Debt | 6.787 | 7.608 | 3.488 | 1.670 | 0.629 | -62.3% |
Cash flow
|
|---|
| Capex | 0.076 | 0.024 | 0.127 | 0.168 | 0.128 | -23.8% |
Ratios
|
|---|
| Revenue growth | -8.0% | -11.1% | -11.2% | 1.4% | 14.6% | |
| EBITDA growth | -69.3% | -27.7% | -22.0% | -28.3% | 45.6% | |
|
|---|
| Gross Margin | 61.0% | 63.6% | 66.0% | 72.2% | 71.3% | -0.9% |
| EBITDA Margin | -25.4% | -20.7% | -18.2% | -12.8% | -16.3% | -3.5% |
| SG&A, % of revenue | 67.1% | 66.0% | 62.0% | 61.1% | 65.7% | 4.6% |
| Net Income Margin | -35.3% | -41.6% | -14.5% | -25.4% | -31.6% | -6.2% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.5% | 0.7% | 0.4% | -0.2% |
|
|---|
| ROIC | -38.9% | -40.3% | -48.3% | -43.7% | -74.6% | -30.9% |
| ROE | -45.3% | -84.4% | -44.7% | -74.9% | -140.5% | -65.7% |
Qumu Corporation ($QUMU) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 6 | 9 | 7 | 7 | | -12.3% | 74.0% | -0.6% | 10.5% |
| EBITDA | -2 | 0 | -1 | -2 | | -1,382.0% | - | - | - |
| Net Income | -3 | -1 | -2 | -4 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 8 | 10 | 11 | 12 | | -2.4% | 34.5% | 50.9% | 11.6% |
| Short Term Debt | 1 | 3 | 3 | 3 | | -84.4% | -39.7% | -44.2% | 295.3% |
| Long Term Debt | 1 | 1 | 1 | 1 | | 25.1% | 11.3% | -37.2% | -62.3% |
Ratios
|
|---|
| Gross Margin | 66.5% | 68.5% | 75.1% | 75.7% | | -11.9% | -2.4% | 5.2% | 6.9% |
| EBITDA Margin | -35.4% | 0.5% | -16.0% | -22.1% | | -37.8% | 29.2% | -7.0% | -1.5% |
| Net Income Margin | -42.9% | -7.4% | -28.0% | -57.8% | | -29.5% | 59.7% | -24.7% | -31.0% |
Peers in Application Software
Below you can find Qumu Corporation 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 | 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. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 15.7% | 15.2% | 19.5% | 14.6% |
|---|
| Qumu Corporation ($QUMU) | - | -11.1% | -11.2% | 1.4% | 14.6% |
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. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (89 companies) | 64.2% | 64.6% | 65.3% | 67.9% | 69.4% |
|---|
| Qumu Corporation ($QUMU) | 61.0% | 63.6% | 66.0% | 72.2% | 71.3% |
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. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -4.7% | -3.3% | -3.3% | 4.5% | 7.7% |
|---|
| Qumu Corporation ($QUMU) | -25.4% | -20.7% | -18.2% | -12.8% | -16.3% |
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. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (87 companies) | 3.0% | 2.3% | 2.4% | 3.0% | 2.6% |
|---|
| Qumu Corporation ($QUMU) | 0.2% | 0.1% | 0.5% | 0.7% | 0.4% |
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. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.2% | -10.2% | -9.8% | -4.2% | -1.8% |
|---|
| Qumu Corporation ($QUMU) | -38.9% | -40.3% | -48.3% | -43.7% | -74.6% |
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 | -0.7x | 0.4x | 0.2x |
|---|
