Demand Media (DMD) saw its loss narrow to $8.35 million, or $0.41 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $13.80 million, or $0.69 a share. On the other hand, adjusted net loss for the quarter narrowed to $2.88 million, or $0.14 a share from a loss of $5.39 million or $0.27 a share, a year ago.
Revenue during the quarter went down marginally by 1.56 percent to $28.06 million from $28.50 million in the previous year period. Operating margin for the quarter stood at negative 29.88 percent as compared to a negative 49 percent for the previous year period.
Operating loss for the quarter was $8.38 million, compared with an operating loss of $13.97 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $2.16 million compared to negative $3.65 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 7.69 percent for the quarter compared to negative 12.79 percent in the last year period.
"Q3 was a very successful quarter for us, with revenue increasing 12% year-over-year on a pro forma basis," said Sean Moriarty, chief executive officer of Demand Media. "These positive developments are an example of the evolution of our company over the past two years, making this the perfect time to highlight our progress. We are excited to move forward as Leaf Group, which symbolizes our continued focus on growth, while providing an opportunity to highlight the significant role that our marketplaces now play in our operating model."
Operating cash flow remains negativeDemand Media has spent $13.48 million cash to meet operating activities during the nine month period as against cash outgo of $9.75 million in the last year period. Cash flow from investing activities was $31.04 million for the nine month period, up 292.94 percent or $23.14 million, when compared with the last year period.
The company has spent $4.44 million cash to carry out financing activities during the nine month period as against cash outgo of $8.03 million in the last year period.
Cash and cash equivalents stood at $51.69 million as on Sep. 30, 2016, up 36.24 percent or $13.75 million from $37.94 million on Sep. 30, 2015.
Working capital increases sharply
Demand Media has recorded an increase in the working capital over the last year. It stood at $50.15 million as at Sep. 30, 2016, up 40.79 percent or $14.53 million from $35.62 million on Sep. 30, 2015. Current ratio was at 3.96 as on Sep. 30, 2016, up from 3.11 on Sep. 30, 2015.
Days sales outstanding went down to 29 days for the quarter compared with 33 days for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
