Xunlei Limited reports 3.2% revenue growth in FY2020
03/16/2021 • About Xunlei Limited (
$XNET) • By InTwits
Xunlei Limited reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: in FY2020 vs. -27.3% in FY2019 vs. -23.6% in FY2016
- Xunlei Limited motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.6% while average EBITDA Margin was -17.5% for the sames years
- The company has unprofitable business model: ROIC is -6.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.2%. Revenue growth showed acceleration in FY20Q4 - it increased 4.5% YoY.
Gross Margin increased on 5.6 pp from 44.7% to 50.3% in FY2020. SG&A as a % of Revenue dropped on 11.3 pp from 39.2% to 27.9% in FY2020.
Net Income margin jumped on 22.0 pp from -29.4% to -7.4% in FY2020.
Return on investment
The company operates at negative ROIC (-6.2%) and ROE (-4.7%). ROIC jumped on 10.7 pp from -16.9% to -6.2% in FY2020. ROE jumped on 11.9 pp from -16.6% to -4.7% in FY2020. During the last 5 years ROE bottomed in FY2019 at -16.6%.
Leverage (Debt)
Debt dropped on 77.5% while cash dropped on 15.5%.
Xunlei Limited has no short term refinancing risk: cash is higher than short term debt (6,998.9%).
Financial and operational results
Xunlei Limited ($XNET) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 140.2 | 200.6 | 230.6 | 180.7 | 186.4 | 3.2% |
| Gross Profit | 60.3 | 82.7 | 114.9 | 80.8 | 93.7 | 16.1% |
| SG&A | 40.6 | 56.4 | 76.2 | 70.8 | 52.0 | -26.5% |
| EBITDA | -33.1 | -44.2 | -37.5 | -49.4 | | |
| EBIT | | | | -56.4 | | |
| Net Income | -24.1 | -37.8 | -39.3 | -53.2 | -13.8 | |
| Stock Based Compensation | | | | 5.4 | | |
Balance Sheet
|
|---|
| Cash | 199.5 | 233.5 | 122.9 | 162.5 | 137.2 | -15.5% |
| Accounts Receivable | | | | 27.5 | | |
| Inventory | | | | 5.5 | | |
| Accounts Payable | | | | 24.2 | | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 4.7 | 2.0 | -58.2% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 4.1 | 0.0 | -99.3% |
Cash flow
|
|---|
| Capex | 13.8 | 5.3 | 1.4 | 3.1 | | |
Ratios
|
|---|
| Revenue growth | 34.1% | 43.1% | 15.0% | -21.7% | 3.2% | |
| EBITDA growth | 141.3% | 33.3% | -15.1% | 31.7% | | |
|
|---|
| Gross Margin | 43.0% | 41.2% | 49.8% | 44.7% | 50.3% | 5.6% |
| EBITDA Margin | -23.6% | -22.0% | -16.3% | -27.3% | |
| EBIT Margin | | | | -31.2% | |
| SG&A, % of revenue | 29.0% | 28.1% | 33.0% | 39.2% | 27.9% | -11.3% |
| SBC, % of revenue | | | | 3.0% | |
| Net Income Margin | -17.2% | -18.9% | -17.0% | -29.4% | -7.4% | 22.0% |
| CAPEX, % of revenue | 9.8% | 2.7% | 0.6% | 1.7% | | |
|
|---|
| ROIC | -9.8% | -13.8% | -12.1% | -16.9% | -6.2% | 10.7% |
| ROE | -5.6% | -9.5% | -10.8% | -16.6% | -4.7% | 11.9% |
People
|
|---|
| Employees | | | | 1,070 | | |
| Revenue/Employee, th. $ | | | | 169 | | |
Xunlei Limited ($XNET) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 48 | 44 | 44 | 50 | | 17.6% | -7.7% | -0.7% | 4.5% |
| Net Income | -5 | -12 | -1 | 5 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 141 | 131 | 124 | 137 | | -9.8% | -28.2% | -23.6% | -15.3% |
| Short Term Debt | 4 | 2 | 2 | 2 | | -22.1% | -41.8% | -58.3% | -60.8% |
| Long Term Debt | 3 | 0 | 0 | 0 | | -37.3% | -85.4% | -99.6% | -99.3% |
Ratios
|
|---|
| Gross Margin | 49.4% | 46.0% | 51.9% | 53.5% | | -2.6% | -1.0% | 7.9% | 16.5% |
| Net Income Margin | -11.4% | -26.0% | -3.3% | 9.3% | | 10.5% | -21.8% | 53.5% | 46.8% |
Peers in Application Software
Below you can find Xunlei Limited 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. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 14.8% | 15.2% | 19.5% | 14.7% |
|---|
| Xunlei Limited ($XNET) | - | 43.1% | 15.0% | -21.7% | 3.2% |
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. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (89 companies) | 64.2% | 64.6% | 66.0% | 68.4% | 70.6% |
|---|
| Xunlei Limited ($XNET) | 43.0% | 41.2% | 49.8% | 44.7% | 50.3% |
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. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (90 companies) | -4.7% | -3.3% | -3.3% | 4.5% | 7.2% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($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) | 2.9% | 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. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.2% | -10.2% | -9.8% | -4.2% | -1.8% |
|---|
| Xunlei Limited ($XNET) | -9.8% | -13.8% | -12.1% | -16.9% | -6.2% |
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 (54 companies) | -0.9x | -0.8x | -0.7x | 0.4x | 0.2x |
|---|
