Mediaboss Marketing

Many investors consider it preferable to invest in profitable companies over unprofitable ones, because profitability suggests a business is sustainable. That said, the current statutory profit is not always a good guide to a company's underlying profitability. This article will consider whether CyberArk Software's (NASDAQ:CYBR) statutory profits are a good guide to its underlying earnings.

While CyberArk Software was able to generate revenue of US$449.6m in the last twelve months, we think its profit result of US$2.92m was more important. As you can see in the chart below, its profit has declined over the last three years, even though its revenue has increased.

View our latest analysis for CyberArk Software

Of course, it is only sensible to look beyond the statutory profits and question how well those numbers represent the sustainable earnings power of the business. So today we'll look at what CyberArk Software's cashflow tells us about the quality of its earnings. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company's profit is not backed by free cashflow.

Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.

Over the twelve months to September 2020, CyberArk Software recorded an accrual ratio of -0.64. That indicates that its free cash flow quite significantly exceeded its statutory profit. To wit, it produced free cash flow of US$114m during the period, dwarfing its reported profit of US$2.92m. CyberArk Software's free cash flow actually declined over the last year, which is disappointing, like non-biodegradable balloons.

As we discussed above, CyberArk Software's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Based on this observation, we consider it possible that CyberArk Software's statutory profit actually understates its earnings potential! Unfortunately, though, its earnings per share actually fell back over the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you want to do dive deeper into CyberArk Software, you'd also look into what risks it is currently facing. For example, we've found that CyberArk Software has 5 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Today we've zoomed in on a single data point to better understand the nature of CyberArk Software's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.

PromotedIf youre looking to trade CyberArk Software, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Follow this link:
Here's Why We Think CyberArk Software's (NASDAQ:CYBR) Statutory Earnings Might Be Conservative - Simply Wall St

PALO ALTO, Calif., Feb. 3, 2021 /PRNewswire/ --Evinced, an unparalleled accessibility software company specializing in providing automation to enterprise developers, today announced $17 million in funding. This round was co-led by M12, Microsoft's venture fund, BGV, and Capital One Ventures along with participation from seed investor, Engineering Capital.

According to the World Health Organization, there are more than 1 billion people worldwide that live with some form of disability, underscoring the critical importance of digital accessibility. In recent years, a rise in web-related lawsuits related to the Americans with Disabilities Act (ADA) has put tremendous pressure on enterprises to make their digital assets accessible to people with impairments. Enterprises are developing and deploying software much faster, and the traditional, labor intensive manual audit process isn't helping teams keep up with the pace. Evinced's latest funding will be used to accelerate the launch of the company's suite of products and services aimed to solve this challenge.

"The root cause of accessibility problems is the fact that large parts of the web are not machine readable; instead, they were designed for visual consumption. Evinced has developed technology that visually analyzes websites and applications, builds a structural semantic model, and then compares it to the actual code to detect potential accessibility issues. This fundamentally new technology approach enables us to significantly outperform legacy approaches," said founder and CEO Navin Thadani. "We're exceptionally motivated to bring accessibility to all and are humbled to have the support of investors and partners such as M12, BGV, and Capital One Ventures as it is a testament to our core mission."

"With over one billion people globally living with a disability, corporations need to ensure the accessibility of digital properties so that all customers can access their products and services," said Global Head of M12 Nagraj Kashyap. "Building accessible code is the right thing to do, and it's also good for business. Evinced has a unique technology approach that will enable enterprise developers to weave accessibility into their software development process, and ultimately, engage more customers."

"Evinced is radically innovating the emerging field of digital accessibility," said Eric Benhamou, Founder and General Partner, BGV. "Evinced and digital accessibility is part of our global thesis aligning with Enterprise 4.0 and our focus on deep technology providing access to billions of people. We believe Evinced is revolutionizing and is poised to become a category leader in digital accessibility."

With this funding, Evinced will deploy early versions of its products that already outperform existing solutions up to 20 times, and has production deployments at Fortune 500 enterprise customers such as Capital One.

"At Capital One, we're passionate about digital accessibility and committed to making our products and services accessible to everyone," said Mark Penicook, Director of Digital Accessibility at Capital One. "Technology is essential to delivering accessible experiences and we continually look for the best solutions to support our program. Evinced's unique technical approach enables us to integrate accessibility earlier in the development cycle, making it easier to design and build accessible assets and maintain that accessibility level over time. It has become the standard accessibility testing and development platform at Capital One, and we're excited about the innovation Evinced will continue to deliver."

Enterprises spend millions of dollars every year on making their digital assets accessible - only to fail at accessibility compliance, which stalls the pace of their software development.Evinced has built technology to automatically detect accessibility problems during the development cycle, while suggesting code changes to remediate the issues. Enterprises can now improve accessibility compliance and easily maintain the level over time, all while reducing associated expenses and legal liability. With computer vision, AI, and other algorithms, Evinced has and is building products for enterprise developers to allow them to seamlessly weave accessibility into their software development process, producing naturally accessible code.

About EvincedFounded in 2018, Evinced is a web accessibility software company focused on providing accessibility automation to enterprise developers by going beyond legacy static/syntax analysis. Built with advanced rule-sets, computer vision and AI algorithms, Evinced automatically detects and pinpoints accessibility problems and suggests fixes. Leading enterprises use Evinced to weave accessibility into their software development process - including design, development, automated testing and production/compliance monitoring. To learn more please visit: https://www.evinced.com/

Contact: Brittany Harran[emailprotected]

SOURCE Evinced

Link:
Evinced Raises $17M: Announces Series A to Launch Enterprise Digital Accessibility Platform for Software Development Teams - PRNewswire

Tesla has agreed to recall more than 134,000 Model S sedans and Model X SUVs that will eventually suffer from faulty displays after pressure from the leading US safety regulator, the National Highway Traffic Safety Administration. Tesla announced the recall to customers in an email, according to Electrek, and said a software update could allow them to keep accessing crucial features like the backup camera in the meantime if their displays fail.

The problem that prompted the recall has to do with the 8GB eMMC NAND flash memory device that Tesla used in its massive touchscreen displays on most 20122018 Model S sedans and 20162018 Model X SUVs. These chips eventually wear out, as Motherboard first reported back in 2019, and when they do, it bricks the entire media control unit cutting off access to not only the backup camera (which is now federally required), but also HVAC controls and everything else that Tesla has routed through the touchscreen. It also affects the turn signal lights, according to the agency. NHTSA says all of this increases the risk of a crash.

NHTSA started an investigation into the failures last year, and during that process, Tesla eventually told the agency that every car with the flash chip will inevitably fail. Tesla told NHTSA that it could take as long as eight years to swap all the defective parts if a recall wasnt issued, with most failures happening around 2022.

Tesla did not appear to want to recall the cars initially, prompting NHTSA to take the unusual step of publishing a public letter requesting the recall last month.

Now, Tesla has committed to the recall. On February 1st, NHTSA sent another letter confirming that Tesla will begin a recall on March 30th, covering an estimated 134,591 vehicles. (NHTSA notes in this letter that Tesla still does not believe the bricked displays cause a safety risk.)

Owners can call Tesla customer service at 1-877-798-3752 for more information, and the companys reference number for the recall is SB-21-21-001. They can also call NHTSAs Vehicle Safety Hotline at 1-888-327-4236 or go to http://www.safercar.gov for more information.

In the email to owners, Tesla says it will upgrade the eMMC chip free of charge with an enhanced 64GB eMMC. The company says it will notify owners when parts become available and asks that they not schedule a service appointment unless their vehicles display bricks or they get an alert about the memory storage. Owners who already paid Tesla to repair the issue may be eligible for reimbursement, which the company says it will share more information about by the end of March. Tesla has been offering to swap the media control unit altogether for $1,500 in exchange for a more powerful version with new features and which, presumably, wont fail.

In the meantime, Tesla says owners will not lose access to the backup camera, turn signal, and a base setting for windshield defogging and defrosting if the chip fails as long as owners upgrade their vehicles software to version 2020.48.12.

Visit link:
Tesla agrees to recall cars with failing displays - The Verge

Apple has released the first beta of macOS 11.3 to developers today and the latest Big Sur software comes with a number of new features and changes. Headlining the improvements is more customization options in Safari, sorting options in the Reminders app, iPhone/iPad apps preference panes for keyboard touch alts, support for the latest Xbox/Playstation controllers, and more.

The first macOS Big Sur 11.3 beta is now available for developers and many of the new changes mirror what we saw with the iOS 14.5 beta that arrived yesterday.

Rene Ritchie got a hold of the release notes and highlighted the most notable changes on Twitter as the software was released.

The new features include improved customization in Safari, new sorting options in Reminders, a redesigned News+ tab, support for the latest Xbox and Playstation controllers, a new Made for You shortcut that works with the Music app, and an iPhone/iPad apps preference panes for keyboard touch alts.

Update: 9to5Mac found code references in macOS Big Sur 11.3 beta about a new settings menu that will show details about the Mac warranty, similar to a feature that is already available in iOS. We also found out that the App Tracking Transparency API is now available in macOS 11.3 beta.

Safari now has support to extensions that will let users change the default pages of a new window or new tab with different features or even a new style to these pages. Todays macOS beta also brings a new Support menu with more details on Apples 1-year limited warranty coverage and AppleCare.

Furthermore, macOS Big Sur 11.3 beta finally adds an option to set stereo-paired HomePods as the default sound output on Mac.

Well update this post as we learn more about macOS 11.3.

Find something interesting in the first beta of Big Sur 11.3? Let us know in the comments below or on Twitter @9to5Mac.

FTC: We use income earning auto affiliate links. More.

Check out 9to5Mac on YouTube for more Apple news:

Read the original:
Whats new in macOS 11.3? Sorting in Reminders app, Safari customizations, more [U] - 9to5Mac

TrustLayer, which provides insurance brokers with risk management services via a SaaS platform, has raised $6.6 million in a seed round.

Abstract Ventures led the financing, which also included participation from Propel Venture Partners, NFP Ventures, BoxGroup and Precursor Ventures. Interestingly, the startup also got some industry validation in the way of investors. Twenty of the top 100 insurance agencies in the U.S. (as well as some of their C-suite execs) put money in the round. Those agencies include Holmes Murphy, Heffernan and M3, among others.

BrokerTech Ventures (BTV), a group consisting of 13 tech-focused insurance agencies in the U.S. and 11 top-tier insurance companies, also invested in TrustLayer. The funding actually marked BTVs first investment in a cohort member of its inaugural accelerator program.

TrustLayer co-founder and CEO John Fohr said the company was founded on the premise that verification of insurance and business credentials is a major pain point for millions of businesses. The process takes time and is not always trustworthy, which can lead to money lost in the long run.

To help solve the problem, San Francisco-based TrustLayer has used robotic process automation (RPA) to build out what it describes as an automated and secure way for companies to verify insurance. It sells its software-as-a-service either through insurance brokers or directly to the companies themselves.

TrustLayer says that companies that use its platform can automate the verification of insurance, licenses and compliance documents of business partners such as vendors, subcontractors, suppliers, borrowers, tenants, ridesharing and franchisees. (By verification of insurance, we mean confirming that a company is actually insured and not just pretending to be.)

Recent traction includes companies working in the construction, property management, sports and hospitality industries. Insurance fraud is a real and expensive concern for companies working in those spaces, according to Fohr, who noted that the seed round was heavily oversubscribed.

TrustLayers long-term goal is to work with dozens of the largest brokers and carriers in the U.S. to build out a digital, real-time proof of insurance solution for businesses of all sizes, across all industries.

The best analogy to describe what we do is calling us the Carta for insurance, Fohr told TechCrunch. Were automating a process that is hugely painful and manual to help our carrier and broker partners provide better services to their customers and help companies reduce risk and make sure their business partners have the right coverage.

David Mort, partner at Propel Venture Partners, said that nearly every business relationship requires one or both parties to prove they have the insurance required for engagement.

TrustLayer comes in by attacking a messy, data-rich and unstructured problem within the insurance industry that is a major friction source for commerce.

Mort appreciates that TrustLayer is tackling the problem not by becoming the insurance broker, but by working with the incumbents as a software solution.

Propel is no stranger to investing in fintech, having backed the likes of Coinbase, DocuSign, Guideline and Hippo. Mort acknowledges that much of the innovation in fintech has historically focused on the banking industry while the insurance industry has been slower to innovate.

The most interesting opportunities we see are around modernizing legacy infrastructure, reducing friction, and improving the customer experience, he told TechCrunch. More generally, insurtech companies are well-positioned for this market environment, where recurring revenue (or policies in this case) is valued, and more people are at home shopping for digital financial services. The need for insurance is only increasing.

Meanwhile, Ellen Willadsen, chief innovation officer at Holmes Murphy and executive sponsor of BrokerTech Ventures, noted that TrustLayers expanded digital proof of coverage software is seeing high adoption among member agencies.

TrustLayer will use its new capital for (naturally) some hiring of sales, marketing and engineering staff. It also plans to team up with The Institutes RiskStream Collaborative (considered to be one of the largest blockchain insurance consortiums in the U.S.) and insurance carriers to build out its digital proof of insurance offering.

Per a recent TechCrunch data analysis and some external data work on the insurtech venture capital market, it appears that private insurtech investmentis matching the attention public investors are also giving the sector.

View original post here:
TrustLayer raises $6M seed to become the Carta for insurance - TechCrunch