MODEL N Reports Third Quarter Earnings for FY2023 on June 30th
August 24, 2023
🌥️Earnings Overview
MODEL N ($NYSE:MODN) reported total revenue of USD 63.7 million and net income of USD 2.8 million for the third quarter of FY2023 ended June 30, 2023. This marked a 13.5% increase in total revenue and 145.3% in net income compared to the same quarter the previous year.
Stock Price
The report was met with mixed reactions on the stock market, as MODEL N stock opened at $32.2 but closed at $31.9, representing a decrease of 2.0% from the previous closing price of $32.5. The report highlighted many of MODEL N’s successes over the past quarter, including strong performance in their core revenue management platform and an impressive increase in customer adoption across multiple industries. Despite this positive news, investors seemed cautious of the declining stock price and uncertain about the potential for future growth. As a result, there is some speculation that the company may have to adjust their strategies to increase investor confidence moving forward. 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 |
| 243.66 | -42.66 | -10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Model N. More…
| Operations | Investing | Financing |
| 31.42 | -0.74 | 84.51 |
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 |
| 483.31 | 379.68 | 2.72 |
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 |
| 16.0% | 14.6% | -3.3% |
| FCF Margin | ROE | ROA |
| 12.6% | -5.2% | -1.0% |
Analysis
At GoodWhale, we have conducted a comprehensive evaluation of MODEL N, an investment option. Through our analysis, we have identified MODEL N as a medium risk investment based on our Risk Rating system. We have detected four risk warnings in the income sheet, balance sheet, cash flow statement, and nonfinancial aspects. If you would like to review these warnings, please register with us to access more detailed information. We take pride in being able to offer our customers comprehensive financial and business analysis of MODEL N, so they can make an informed decision that is best suited to their needs and goals. 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 earnings for the third quarter of FY2023, with total revenue of USD 63.7 million and a 145.3% year-over-year increase in net income. This growth indicates a healthy financial position and could be an attractive investment opportunity for potential investors. The company’s substantial revenue increase also suggests a well-positioned market position and attractive future prospects. Analysts will want to consider the sustainability of the company’s growth and the risk associated with investing in MODEL N going forward.
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