Revenue during the quarter dropped 28.35 percent to $20.88 million from $29.14 million in the previous year period. Gross margin for the quarter contracted 2809 basis points over the previous year period to 28.21 percent. Operating margin for the quarter stood at negative 25.37 percent as compared to a positive 20.38 percent for the previous year period.

Operating loss for the quarter was $5.30 million, compared with an operating income of $5.94 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $3.60 million compared with $8.58 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 17.24 percent for the quarter compared to 29.44 percent in the last year period.

"The fourth quarter of 2016 capped a year of challenges and transitions for the Company," remarked Jeff Surges, president and chief executive officer of Connecture. "On the positive side, we added notable new logos to our customer base, enabled our clients to experience another successful open and annual enrollment period, and empowered over 20 million Americans to make smarter purchase decisions regarding their health insurance and drug benefits. However, the uncertain political status of the Affordable Care Act and proposed health plan merger activity created market headwinds which impacted our growth expectations. Additionally, our profitability significantly suffered from greater than expected resources required to support certain customers through the 2016 enrollment period and disappointing volume in our variable revenue arrangements. To address the issues impacting our financial results, we implemented substantial cost reductions in the fourth quarter which are expected to meaningfully improve our financial performance beginning in 2017. With a new leadership team, a laser focus on achieving profitability through an emphasis on fixing our pricing and cost structure, and an expected improvement in the general market conditions, we expect to build upon our customer successes while also improving our financial performance."

For financial year 2017, Connecture, Inc. expects revenue to be in the range of $73 million to $78 million.

The company has spent $5.68 million cash to meet investing activities during the year as against cash outgo of $1.32 million in the last year.

Cash flow from financing activities was $30.94 million for the year as against cash outgo of $5.32 million in the last year period.

Cash and cash equivalents stood at $6.21 million as on Dec. 31, 2016, up 14.45 percent or $0.78 million from $5.42 million on Dec. 31, 2015.

Working capital remains negative
Working capital of Connecture, Inc. was negative $33.19 million on Dec. 31, 2016 compared with negative $31.22 million on Dec. 31, 2015. Current ratio was at 0.32 as on Dec. 31, 2016, down from 0.35 on Dec. 31, 2015.

Days sales outstanding went up to 18 days for the quarter compared with 17 days for the same period last year.

At the same time, days payable outstanding went down to 23 days for the quarter from 25 for the same period last year.