MODEL N Reports Third Quarter Fiscal Year 2023 Earnings Results on August 8th
August 10, 2023
🌥️Earnings Overview
On August 8 2023, MODEL N ($NYSE:MODN) reported their earnings results for the third quarter of fiscal year 2023 (ending June 30 2023). Total revenue for the quarter was USD 63.7 million, a 13.5% increase year over year, and net income rose 145.3% to USD 2.8 million.
Stock Price
On the day of the announcement, MODEL N stock opened at $32.2 and closed at $31.9, down by a total of 2.0% from its last closing price of $32.5. MODEL N also highlighted their efforts to improve customer satisfaction and maintain strong partnerships with their clients. The third quarter results demonstrate MODEL N’s capability to adapt and succeed despite challenging economic conditions. The company’s impressive performance indicates that it will continue to remain a strong competitor in the industry. 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
GoodWhale conducted an analysis of MODEL N‘s wellbeing. According to Star Chart, we concluded that MODEL N is strong in growth, medium in asset and weak in dividend and profitability. MODEL N has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it is likely to sustain future operations in times of crisis. As such, we classified MODEL N as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. We believe investors who are looking for high growth but are comfortable with the risks of investing in a less stable company may be interested in MODEL N. 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
Investors are optimistic about MODEL N‘s third quarter of fiscal year 2023, which ended on June 30th. The company posted total revenue of USD 63.7 million, up 13.5% compared to the prior year. This figure was accompanied by a significant 145.3% year-over-year increase in net income to USD 2.8 million.
This positive financial performance reflects MODEL N’s dedication to streamlining operations and improving efficiency. Although the company is still in its early stages of development, investors remain bullish on the company’s potential.
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