TMT Company’s Semi-annual Report Series (16): Foxit Software (832422): Revenue from Service Subscription Model of Leading PD Electronic Document Provider in China Stable Growth
Event: The company released the semi-annual report for 2019, and the company achieved operating income in the first half of the year1.
520,000 yuan, an increase of 30 in ten years.
21%; net profit attributable to mother is 1851.
870,000 yuan, an increase of 92 in ten years.
Users are located in more than 200 countries on six continents at home and abroad. Expanding overseas markets drives performance improvement: The company belongs to the software and information technology service industry. It is an emerging enterprise that integrates core technologies of PDF electronic documents. Users are located in more than 200 countries on six continents.The number of users has exceeded 1 billion and has a large number of enterprise-level customer resources, including Microsoft, Amazon, Panasonic, Intel, IBM, Sony, IKB Bank, NASDAQ, JP Morgan Chase, Baidu, 360 and other well-known enterprises.
Short-term reasons Global mergers and acquisitions required by the company’s strategic development, and the internal market surrounding the two cities of Beijing and Fuzhou radiate the country, which will lead to a substantial increase in the company’s operating income and return to the parent net profit, the company’s financial 北京保健按摩 data increased, and operating activities in the first half of 2019Had a net cash flow of 4097.
430,000 yuan, significantly higher than the 1629 in the same period in 2018.
150,000 yuan, operating cash flow performance is better.
The gross profit margin was 94.
16%, with a net profit of 12.
66%, all higher than the same period last year.
Expenses during the sales period 80.
40%, lower than the same period in 2018.
Shortened $ 700,000 order with Shared Service Canada, expected to continue the cooperation time: In the first half of 2019, the company and Shared Service Canada shortened the initial amount of Foxit Phantom PDF order contract of $ 700,000, and is expected to continue cooperation.
Canada Shared Service is a project that provides digital services to Canadian government organizations. As a PDF supplier for this project, the company works with other technology vendors to provide the Canadian government with modern, secure, and reliable IT services.
R & D efforts have continued to increase, with remarkable R & D results: R & D investment in the first half of 2019 was 2,657.
490,000 yuan, higher than the R & D investment in the same period last year. In the first half of 2019, the company’s product research and development has made new progress: PDF basic technology supplements PDF2.
0 Support for digital signature technology and AutoTag technology; Windows desktop platform for PhantomPDF products released 9.
6 versions, Mac desktop platform released 3.
3 versions; SDK product desktop platform and mobile platform released 6.
4 versions; Interconnect PDF released cPD FMVP2.
The technical strength of version 0 has been significantly enhanced.
Profit mainly comes from software product licensing and service income, and software service subscription revenue has increased: the company’s main profit in the first half of 2019 still comes from software product licensing and service income.
At the same time, in accordance with the development trend of the software industry, the revenue of the software service subscription model has increased.
The revenue is specifically derived from the sales of PDF general-purpose products such as PDF software suites and functional components, as well as technical license fees received by PDF development platforms and tools; new version upgrade fees and technical service fees.
Software subscription service revenue will be one-time, and its authorized pricing is converted to installment payments. Under this model, users can use the latest products and technical services during the period of their purchase, which reduces the number of malware found at the door and promotesUser experience and stickiness.
Investment suggestion: The company has a comparative advantage in the field of PDF electronic documents, and its revenue and profits will maintain rapid growth in the first half of 2019.
Finally the latest company market size 10.
5.7 billion, PE TTM25X, it is recommended to pay attention.
Risk Warning: Technology Update Risk, Rising Labor Cost