Company profile

Ticker
VRTU
Exchange
Website
CEO
Krishan Aruna Canekeratne
Employees
Incorporated in
Location
Fiscal year end
SEC CIK

VRTU stock data

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FINRA relative short interest over last month (20 trading days) ?

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

7 Feb 20
18 Feb 20
31 Mar 20

News

Company financial data Financial data

Quarter (USD) Dec 19 Sep 19 Jun 19 Mar 19
Revenue 335.11M 328.5M 319.02M 327.63M
Net income 12.72M 7.1M 5.83M 8.36M
Diluted EPS 0.38 0.2 0.15 0.24
Net profit margin 3.80% 2.16% 1.83% 2.55%
Operating income 30.41M 19.24M 13.43M 23.04M
Net change in cash 34.02M -6.64M 331K -20.9M
Cash on hand 217.39M 183.37M 190.01M 189.68M
Cost of revenue 236.43M 238.58M 234.74M 230.36M
Annual (USD) Mar 19 Mar 18 Mar 17 Mar 16
Revenue 1.25B 1.02B 858.73M 600.3M
Net income 16.15M 1.25M 11.86M 44.8M
Diluted EPS 0.38 -0.09 0.39 1.49
Net profit margin 1.29% 0.12% 1.38% 7.46%
Operating income 70.27M 46.39M 18.37M 45.32M
Net change in cash -5.22M 49.99M -4.08M 24.18M
Cash on hand 189.68M 194.9M 144.91M 148.99M
Cost of revenue 884.65M 725.45M 620.95M 389.31M

Financial data from Virtusa earnings reports

85.1% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 165 180 -8.3%
Opened positions 20 24 -16.7%
Closed positions 35 26 +34.6%
Increased positions 84 74 +13.5%
Reduced positions 36 50 -28.0%
13F shares
Current Prev Q Change
Total value 927.26M 1.17B -20.8%
Total shares 25.74M 26.35M -2.3%
Total puts 2.2K 19.7K -88.8%
Total calls 1.9K 19K -90.0%
Total put/call ratio 1.2 1.0 +11.6%
Largest owners
Shares Value Change
BLK BlackRock 4.37M $157.44M +6.3%
Vanguard 2.55M $91.92M +3.5%
FMR 2.45M $88.36M -21.6%
Dimensional Fund Advisors 1.48M $53.35M +0.1%
Granahan Investment Management 1.17M $41.99M +18.7%
GW&K Investment Management 1.01M $36.31M +25.1%
FIL 1M $36.11M 0.0%
Thrivent Financial For Lutherans 880.94K $31.73M +3.2%
STT State Street 867.44K $31.25M +2.4%
Frontier Capital Management 800.75K $28.84M +11.2%
Largest transactions
Shares Bought/sold Change
FMR 2.45M -676K -21.6%
Loomis Sayles & Co L P 0 -592.23K EXIT
Hawk Ridge Capital Management 492.1K +492.1K NEW
RY Royal Bank of Canada 269.64K +268.77K +31036.3%
BLK BlackRock 4.37M +258.49K +6.3%
Redwood Investments 0 -236.87K EXIT
Portolan Capital Management 43.12K -232.18K -84.3%
Lord, Abbett & Co. 0 -216.06K EXIT
GW&K Investment Management 1.01M +201.91K +25.1%
Granahan Investment Management 1.17M +183.32K +18.7%

Financial report summary

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Risks
  • Our revenue is highly dependent on a small number of clients, and the loss of, or material reduction in, revenue from any one of our major clients could significantly harm our results of operations and financial condition.
  • We depend on clients concentrated in specific industries, such as BFSI; we are therefore subject to enhanced risks relating to developments affecting these clients and industries that may cause them to reduce or postpone their IT spending.
  • Restrictions on immigration may affect our ability to compete for and provide services to clients in the United States, Europe (particularly, the United Kingdom), or other countries, which could result in lost revenue, lower gross margins, delays in or losses of client engagements and otherwise adversely affect our ability to meet our growth, revenue and profit projections.
  • Potential changes in U.S. immigration law, if approved into law, may increase our cost of revenue and may substantially restrict or eliminate our ability to obtain visas to use offshore resources onsite, which could have a material adverse impact on our business, revenue, profitability and utilization rates.
  • The international nature of our business exposes us to many complex risks, which may be beyond our control.
  • Our quarterly financial position, revenue, operating results and profitability are challenging to predict and may vary from quarter to quarter, which could cause our share price to decline significantly.
  • The results of the United Kingdom’s referendum on withdrawal from the European Union may have a negative effect on global economic conditions, financial markets and our business.
  • If we cannot attract and retain highly‑skilled IT professionals, our ability to obtain, manage and staff new projects and expand existing projects may result in loss of revenue and an inability to expand our business.
  • The IT services market is highly competitive and our competitors may have advantages that may allow them to compete more effectively than we do to secure client contracts and attract skilled IT professionals.
  • Any future acquisitions may be difficult to integrate, could divert the attention of key management personnel, materially disrupt our business, dilute stockholder value and materially adversely affect our financial results, including impairment of goodwill and other intangible assets, if we are unable to realize the expected revenue and synergy growth or efficiencies from these acquisitions.
  • There can be no assurance that our business, results of operations and financial condition or our cash needs will not be adversely affected by our incurrence of indebtedness or obligations incurred in connection with our issuance of convertible preferred stock.
  • Despite our senior secured credit facility and the Orogen Preferred Stock Financing, we may need to raise capital in the future, although our ability to raise capital may be limited.
  • We could be subject to strict restrictions on the movement of cash and the exchange of foreign currencies which could limit our access to cash in non‑U.S. locations to fund our U.S. operations or otherwise make investments where needed.
  • We may face damage to our professional reputation and be subject to legal claims and litigation, including high and unexpected costs as a result of any litigation or client disputes, if our services do not meet our clients’ expectations or violate contractual terms with our clients.
  • We may face difficulties in providing end‑to‑end business solutions or delivering complex and large projects for our clients that could cause clients to discontinue their work with us, which in turn could harm our business, results of operations and financial condition.
  • Currency exchange rate fluctuations may materially and negatively affect our revenue, gross margin, operating margin, net income and cash flows.
  • Our operating results may be adversely affected by our use of derivative financial instruments.
  • Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business.
  • We may not be able to obtain, develop or implement new systems, infrastructure, procedures and internal controls that are required to support our operations, maintain cost controls, market our services and manage our relationships with our clients.
  • The failure to successfully and timely implement certain financial system changes to improve operating efficiency and enhance our reporting controls could harm our business.
  • Our share price could be adversely affected if we are unable to maintain effective internal controls.
  • We are investing substantial cash in new facilities and our profitability could be reduced if our business does not grow proportionately.
  • We may be audited by software vendors from whom we license or use their software to train our resources or serve our clients, which may result in claims for infringement, violations of license provisions, or other damages.
  • Negative public perception in the markets in which we sell services regarding offshore IT service providers and proposed anti‑outsourcing legislation may adversely affect demand for our services.
  • Cyber‑attacks as well as improper disclosure or control of personal information could result in liability and harm our reputation, which could adversely affect our business and results of operations.
  • We may face liability if we breach our obligations related to the protection, security, nondisclosure of confidential client information or disclosure of sensitive data or failure to comply with data protection laws and regulations.
  • Interruptions or delays in service from our third‑party providers could impair our global delivery model, which could result in client dissatisfaction and a reduction of our revenue.
  • Some of our client contracts contain restrictions or penalty provisions that, if triggered, could result in lower future revenue and decrease our profitability.
  • Our contractual limitations on liability with our clients and third parties may not be enforceable.
  • Our services may infringe on the intellectual property rights of others, which may subject us to legal liability, harm our reputation, prevent us from offering some services to our clients or distract management.
  • Political instability or changes in the central or state governments in India could result in the change of several policies relating to foreign direct investment and repatriation of capital and dividends. Further, changes in the monetary and economic policies could adversely affect economic conditions in India generally and our business in particular.
  • Changes in the policies or political stability of the government of Sri Lanka could adversely affect economic conditions in Sri Lanka, which could adversely affect our business.
  • Regional conflicts or terrorist attacks and other acts of violence or war in the United States, the United Kingdom, India, Sri Lanka, or other regions could adversely affect financial markets, resulting in loss of client confidence and our ability to serve our clients which, in turn, could adversely affect our business, results of operations and financial condition.
  • Our net income may decrease if the governments of the United States, the United Kingdom, the Netherlands, India, Sri Lanka, Germany, Singapore, Sweden or Hungary adjust the amount of our taxable income by challenging our transfer pricing policies.
  • Our net income may decrease if the governments of India or Sri Lanka levy new taxes or reduce or withdraw tax benefits and other incentives provided to us.
  • Wage pressures and increases in government mandated benefits in India and Sri Lanka may reduce our profit margins.
  • Our facilities are at risk of damage by earthquakes, tsunamis, flooding and climate change induced natural disasters.
  • The laws of India and Sri Lanka do not protect intellectual property rights to the same extent as those of the United States and we may be unsuccessful in protecting our intellectual property rights. Unauthorized use of our intellectual property rights may result in loss of clients and increased competition.
  • The market price of our common stock may fluctuate significantly.
  • Provisions in our charter documents and under Delaware law may prevent or delay a change of control of us and could also limit the market price of our common stock.
Management Discussion
  • Revenue increased by 6.5%, or $20.4 million, from $314.7 million during the three months ended December 31, 2018 to $335.1 million in the three months ended December 31, 2019. The increase in revenue was primarily driven by an increase in revenue from several of our top ten clients, primarily in our C&T industry group, including $6.4 million of revenue from customer contracts acquired from third parties through asset acquisitions, partially offset by a decline in one of our large European banking clients and a decrease in our banking and financial services industry group. Revenue from North American clients in the three months ended December 31, 2019 increased by $27.1 million, or 12.1%, as compared to the three months ended December 31, 2018, particularly due to the increase in revenue from clients in the C&T industry group. Revenue from European clients decreased by $9.9 million, or 15.2%, as compared to the three months ended December 31, 2018, primarily due to decline in revenue from one of our large banking clients. We had 216 active clients at December 31, 2019 and 2018.
Content analysis ?
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Readability
H.S. senior Avg
New words: calendar, composition, conducted, efficiency, enterprise, favorable, grow, iii, insufficient, merger, move, opportunity, Organization, productivity, quality, request, Resource, RFP, RMO, selected, spend, step, unsuccessful, wide
Removed: assume, jointly, JP, permit, syndicated