Synacor, Inc. reports 33.2% revenue decline in FY2020
03/18/2021 • About Synacor, Inc. (
$SYNC) • By InTwits
Synacor, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Synacor, Inc. is a company in decline: FY2020 revenue growth was -33.2%, 5 years revenue CAGR was -5.9%
- It operates with high leverage: Net Debt/EBITDA is 9.7x while industry average is 18.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Synacor, Inc.'s Revenue dropped on 33.2%. Annual revenue decline showed slowdown in FY20Q4 - revenue dropped on 10.2%. Revenue decline was accelerating on average at -12.3 pp per annum in the last 5 years.
Net Income margin decreased on 6.8 pp from -7.4% to -14.2% in FY2020. During the last 5 years Net Income margin topped in FY2018 at -5.3% and was declining since that time.
Management team
The company's CEO Himesh Bhise has spent 6 years with the company. Synacor, Inc.'s CFO is Timothy J Heasley "Tim". Timothy J Heasley "Tim" has 2 years tenure at the company.
Financial and operational results
Synacor, Inc. ($SYNC) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 127.4 | 140.0 | 143.9 | 121.8 | 81.4 | -33.2% |
| Gross Profit | 68.2 | 70.0 | 71.3 | 59.9 | | |
| SG&A | 42.5 | 42.7 | 43.6 | 39.5 | | |
| EBITDA | 0.1 | -0.4 | 3.4 | 7.1 | | |
| Net Income | -10.7 | -9.8 | -7.6 | -9.0 | -11.6 | |
Balance Sheet
|
|---|
| Cash | 14.3 | 22.5 | 15.9 | 11.0 | | |
| Short Term Debt | 1.0 | 2.4 | 2.3 | 4.7 | | |
| Long Term Debt | 6.0 | 3.4 | 1.4 | 3.6 | | |
Cash flow
|
|---|
| Capex | 5.9 | 7.9 | 6.3 | 3.8 | | |
Ratios
|
|---|
| Revenue growth | 15.5% | 9.9% | 2.8% | -15.3% | -33.2% | |
| EBITDA growth | -98.2% | -652.7% | -941.8% | 106.5% | | |
|
|---|
| Gross Margin | 53.6% | 50.0% | 49.6% | 49.1% | | |
| EBITDA Margin | 0.1% | -0.3% | 2.4% | 5.8% | |
| SG&A, % of revenue | 33.4% | 30.5% | 30.3% | 32.4% | | |
| Net Income Margin | -8.4% | -7.0% | -5.3% | -7.4% | -14.2% | -6.8% |
| CAPEX, % of revenue | 4.7% | 5.6% | 4.3% | 3.1% | | |
|
|---|
| ROIC | -18.1% | -19.1% | -11.1% | -14.0% | | |
| ROE | -25.0% | -20.8% | -14.3% | -19.0% | | |
| Net Debt/EBITDA | -98.9x | | -3.6x | -0.4x | |
Synacor, Inc. ($SYNC) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 21 | 18 | 19 | 24 | | -35.3% | -42.9% | -40.9% | -10.2% |
| Net Income | -5 | -3 | -4 | 0 | | - | - | - | - |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | -22.0% | -17.5% | -21.4% | 0.4% | | -14.9% | -9.7% | -9.5% | 2.6% |
Peers in Application Software
Below you can find Synacor, Inc. 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. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 15.7% | 15.2% | 19.5% | 14.7% |
|---|
| Synacor, Inc. ($SYNC) | - | 9.9% | 2.8% | -15.3% | -33.2% |
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. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (90 companies) | 64.2% | 64.6% | 66.0% | 68.4% | 70.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($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 (90 companies) | -5.3% | -4.2% | -3.3% | 2.7% | 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. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (88 companies) | 2.9% | 2.3% | 2.4% | 2.9% | 2.6% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($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) | -9.2% | -10.2% | -9.8% | -4.2% | -2.0% |
|---|
| Synacor, Inc. ($SYNC) | -18.1% | -19.1% | -11.1% | -14.0% | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($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 |
|---|
