
On August 24, Symbility reported its Q2, 2018 results. The company lost $571,000 on revenie of $9.0-million, a topline that was up nine per cent over the same period last year.
“The first half of 2018 saw global economic losses from natural disasters down 64 per cent from the 10-year average, resulting in the lowest claims volumes in five years,” CEO James Swayze said. “Although Symbility achieved 10-per-cent revenue growth over the first half of 2018, the steep decline in weather severity has impacted our property division’s revenue. Most encouraging over the first half is that the number of contract signings in our property segment increased 148 per cent in 2018 as compared to 2017. The combination of contract signings, pipeline expansion, new product launches and the strength of our strategic services allows us to reiterate our revenue guidance of $40-million for 2018 and feel very confident about continued, strong growth in the coming years.”
Abernethy says the results were slightly below his expectations but adds that he remains optimistic about the company’s future.
“We remain positive on Symbility as its innovative solutions continue to attract customer attention in the insurance marketplace,” the analyst says.
In a research update to clients Friday, Abernethy maintained his “Speculative Buy” rating and one-year price target of $0.70, implying a return of 34.6 per cent at the time of publication.
The analyst thinks SY will generate Adjusted EBITDA of $4.2-million on revenue of $39.9-million in fiscal 2018. He expects those numbers will improve to EBITDA of $6.2-million on a topline of $46.9-million the following year.
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