MODEL N Reports Fourth Quarter Fiscal Year 2023 Earnings Results
November 20, 2023
🌥️Earnings Overview
On November 9, 2023, MODEL N ($NYSE:MODN) reported its fiscal year 2023 fourth quarter (ending September 30, 2023) earnings results. The total revenue was USD 64.0 million, representing an increase of 10.0% compared to the same quarter the previous year. Net income came in at USD 0.63 million, a rise of 107.8% year over year.
Market Price
According to the report, MODEL N stock opened at $25.5 and closed at $25.4, up by 0.3% from last closing price of 25.3. The report also highlighted the company’s strong fundamentals and highlighted its positive outlook for the upcoming fiscal year. Management attributed these positive results to cost-saving initiatives implemented during the pandemic and better-than-expected sales growth in certain market segments.
This increase was due to increased customer demand and the company’s focus on increasing efficiency across its operations and supply chain. With a strong outlook for the upcoming fiscal year and solid financial performance in the fourth quarter, MODEL N is well-positioned to continue to deliver value to shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Model N. More…
| Total Revenues | Net Income | Net Margin |
| 249.46 | -33.92 | -4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Model N. More…
| Operations | Investing | Financing |
| 23.6 | -0.45 | 84.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Model N. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 500.1 | 384.63 | 3 |
Key Ratios Snapshot
Some of the financial key ratios for Model N are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.7% | – | -9.8% |
| FCF Margin | ROE | ROA |
| 9.3% | -14.0% | -3.1% |
Analysis
GoodWhale has conducted an analysis of MODEL N‘s fundamentals and has concluded that it falls into the ‘cheetah’ classification. This generally means that the company has achieved high revenue or earnings growth but is considered less stable due to lower profitability. We believe that investors with an appetite for higher risk might be interested in investing in MODEL N. The company has a strong growth outlook, with medium assets and weak dividend and profitability scores. Despite this, it still manages to maintain a healthy score of 8/10 when it comes to its cashflows and debt, ensuring that the company is able to ride out any financial crisis without the risk of bankruptcy. More…
Peers
In the world of enterprise software, there is intense competition between Model N Inc and its main competitors ChannelAdvisor Corp, Sprout Social Inc, and Progress Software Corp. All four companies offer similar products and services, but each has its own strengths and weaknesses. In order to decide which company is the best, it is important to look at the individual products and services offered by each company and compare them.
– ChannelAdvisor Corp ($NYSE:ECOM)
ChannelAdvisor Corp is a publicly traded company that provides software as a service solutions to help retailers and brands increase sales and improve operations on third-party marketplaces and paid digital advertising platforms. As of 2022, ChannelAdvisor’s market cap is 666.81 million and its ROE is 5.17%. ChannelAdvisor’s software as a service solutions enable retailers and brands to list and advertise their products across hundreds of online channels, including Amazon, Google, Facebook and eBay. The company also provides tools and services to help retailers and brands optimize their listings and marketing campaigns, track and manage inventory, fulfill orders and track performance.
– Sprout Social Inc ($NASDAQ:SPT)
Sprout Social Inc is a provider of cloud-based social media management and engagement solutions. Its solutions enable businesses to collaborate, publish, measure, and engage with their audiences on social media platforms. The company was founded in 2010 and is headquartered in Chicago, Illinois.
As of 2022, Sprout Social Inc has a market cap of 2.91B and a Return on Equity of -21.22%. The company’s negative ROE indicates that it is not generating enough profit to cover its equity costs. This may be due to the high costs associated with the company’s cloud-based social media management and engagement solutions.
– Progress Software Corp ($NASDAQ:PRGS)
As of 2022, Progress Software Corporation has a market capitalization of 2.18 billion and a return on equity of 20.71%. The company provides software development tools, services, and application infrastructure products. Progress Software’s products include the Progress OpenEdge platform for creating mission-critical business applications, the Sitefinity web application development platform, and the Telerik platform for building cross-platform mobile applications.
Summary
MODEL N reported strong financial results for the fourth quarter of 2023, with total revenue increasing 10.0% year-over-year and net income rising 107.8%. This indicates favorable conditions for the company and is likely to be well received by investors. The company should continue to experience growth as it continues to invest in its core products and services.
With a strong balance sheet and healthy cash flow, MODEL N is in a good position to capitalize on long-term growth opportunities. Investors looking to invest in a healthy company with strong future prospects should consider MODEL N.
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