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Cybernet Data Systems Inc.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Strategic Insights

— 2 min read

The company, a leading provider of software for infrastructure engineering, has outlined its financial performance and strategic direction. Founded in 1984, the company has consistently demonstrated growth, with revenues increasing by approximately 8% compound annual rate between 2000 and 2019. The company's initial public offering (IPO) was completed on September 25, 2020, with selling stockholders selling 12,360,991 Class B Common Stock at a public offering price of $22.00 per share. The company's software enables digital workflows across engineering disciplines, distributed project teams, and computing form factors. The company's solutions are delivered via on-premise, cloud, and hybrid environments, catering to infrastructure sectors such as public works, industrial, and commercial/facilities.

Key Takeaways:

  • The company estimates that 52% of the net infrastructure asset value of the global top 500 infrastructure owners is in the public works and utilities sector, 38% is in the industrial and resources sector, and 10% is in the commercial and facilities sector.
  • The company's Project Delivery and Asset and Network Performance solutions are provided via cloud and hybrid environments, developed to extend enterprise collaboration during project delivery and manage engineering information during operations and maintenance.
  • The company continues to make substantial investments in research and development, with a focus on applying new technologies to advance existing solutions.
  • The company's recurring revenues under Topic 606 increased by $67,543 (or $69,448 under Topic 605) for the period ended September 30, 2020 compared to the last twelve months of the preceding twelve-month period.
  • The company's ARR growth rate is 31% and 22% as of September 30, 2020 and 2019, respectively, with 18% of total ARR consisting of daily consumption-measured ARR as of September 30, 2020.
  • The company defines Adjusted EBITDA as net income adjusted for interest expense, net, provision for income taxes, depreciation and amortization, equity-based compensation, acquisition expenses, realignment expenses, expenses associated with IPO, other non-operating income and expense, net, and (income) loss from investment accounted for using the equity method, net of tax.
  • The company defines Adjusted Net Income as net income adjusted for amortization of purchased intangibles and developed technologies, equity-based compensation, acquisition expenses, realignment expenses, expenses associated with IPO, other non-operating income and expense, net, the tax effect of the above adjustments to net income, non-recurring income tax expense and benefit, and (income) loss from investment accounted for using the equity method, net of tax.

Statistics:

  • Revenues had an approximately 8% compound annual growth rate between 2000 and 2019.
  • The company's recurring revenues under Topic 606 increased by $67,543 (or $69,448 under Topic 605) for the period ended September 30, 2020 compared to the last twelve months of the preceding twelve-month period.
  • The company's ARR as of September 30, 2020 was $715,336, calculated using the spot foreign exchange rates as of September 30, 2020.
  • The company's ARR growth rate is 31% and 22% as of September 30, 2020 and 2019, respectively.

Sources:

  • (EDGAR Online via COMTEX)
  • SEC (U.S. Securities and Exchange Commission)
  • Topic 606 (Accounting Standards Codification for Revenue Recognition)

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