Endurance International Group Holdings, Inc. (EIGI) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $35.39 million, or $ 0.26 a share in the quarter, against a net profit of $21.81 million, or $0.16 a share in the last year period.
Revenue during the quarter grew 24.47 percent to $295.14 million from $237.11 million in the previous year period. Gross margin for the quarter expanded 716 basis points over the previous year period to 49.60 percent. Operating margin for the quarter period stood at positive 4.61 percent as compared to a negative 27.97 percent for the previous year period.
Operating income for the quarter was $13.59 million, compared with an operating loss of $66.31 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $80.10 million compared with $39.28 million in the prior year period. At the same time, adjusted EBITDA margin improved 1057 basis points in the quarter to 27.14 percent from 16.57 percent in the last year period.
"We are pleased with our first quarter results, which we believe have positioned us well to meet our fiscal 2017 goals," commented Hari Ravichandran, chief executive officer and founder of Endurance International Group. "Our key hosting brands performed in-line with expectations, while Constant Contact continued its steady contribution. We believe that we are moving in the right direction in laying the foundation for profitable growth and strong cash flows for future years. We are proud of our teams and their dedication to the business while remaining focused on our financial and operational objectives."
For fiscal year 2017, Endurance International Group Holdings, Inc. expects revenue to grow in the range of 4 percent to 5 percent. It projects net loss to be $91 million for the same period.
Operating cash flow improves significantly
Endurance International Group Holdings, Inc. has generated cash of $33.68 million from operating activities during the quarter, up 186.06 percent or $21.90 million, when compared with the last year period.
The company has spent $9.38 million cash to meet investing activities during the quarter as against cash outgo of $893.19 million in the last year period.
The company has spent $11.24 million cash to carry out financing activities during the quarter as against cash inflow of $927.10 million in the last year period.
Cash and cash equivalents stood at $68.97 million as on Mar. 31, 2017, down 13 percent or $10.31 million from $79.28 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Endurance International Group Holdings, Inc. was negative $344.71 million on Mar. 31, 2017 compared with negative $358.81 million on Mar. 31, 2016. Current ratio was at 0.33 as on Mar. 31, 2017, down from 0.35 on Mar. 31, 2016.
Days sales outstanding went up to 3 days for the quarter compared with 2 days for the same period last year.
At the same time, days payable outstanding went down to 8 days for the quarter from 11 for the same period last year.
Debt comes down marginally
Endurance International Group Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $1,985.40 million as on Mar. 31, 2017, down 2.68 percent or $54.66 million from $2,040.06 million on Mar. 31, 2016. Total debt was 72.48 percent of total assets as on Mar. 31, 2017, compared with 69.85 percent on Mar. 31, 2016. Debt to equity ratio was at 19.22 as on Mar. 31, 2017, up from 9.56 as on Mar. 31, 2016.
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