Financial Engines (FNGN) has reported 265.70 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $12.17 million, or $0.19 a share in the quarter, compared with $3.33 million, or $0.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.09 million, or $0.33 a share compared with $14.39 million or $0.24 a share, a year ago. Revenue during the quarter grew 23.94 percent to $114.10 million from $92.06 million in the previous year period. Gross margin for the quarter contracted 244 basis points over the previous year period to 54.84 percent. Total expenses were 85.69 percent of quarterly revenues, down from 91.99 percent for the same period last year. This has led to an improvement of 631 basis points in operating margin to 14.31 percent.
Operating income for the quarter was $16.33 million, compared with $7.37 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $35.20 million compared with $28.28 million in the prior year period. At the same time, adjusted EBITDA margin improved 12 basis points in the quarter to 30.85 percent from 30.72 percent in the last year period.
“In the past quarter, we continued to see good momentum in our business,” said Larry Raffone, president and chief executive officer of Financial Engines. “With encouraging leading indicators, including the performance of the refreshed campaigns and our ongoing enrollment efforts, improvements in client retention, and the positive reaction to our expanded offering, we believe we have exciting opportunities that can drive our long-term growth in 2018 and beyond.”
Financial Engines forecasts revenue to be in the range of $480 million to $487 million for fiscal year 2017. For financial year 2017, Financial Engines projects net income to be in the range of $56 million to $58 million.
Operating cash flow turns positive
Financial Engines has generated cash of $2.63 million from operating activities during the quarter as against cash outgo of $0.02 million in the last year period. The company has spent $3.03 million cash to meet investing activities during the quarter as against cash outgo of $204.36 million in the last year period.
Cash flow from financing activities was $3.89 million for the quarter as against cash outgo of $3.73 million in the last year period.
Cash and cash equivalents stood at $137.74 million as on Mar. 31, 2017, up 41.85 percent or $40.64 million from $97.11 million on Mar. 31, 2016.
Working capital increases sharply
Financial Engines has recorded an increase in the working capital over the last year. It stood at $205.08 million as at Mar. 31, 2017, up 47.87 percent or $66.39 million from $138.68 million on Mar. 31, 2016. Current ratio was at 4.64 as on Mar. 31, 2017, up from 3.56 on Mar. 31, 2016.
Days sales outstanding went down to 72 days for the quarter compared with 77 days for the same period last year.
At the same time, days payable outstanding went down to 53 days for the quarter from 62 for the same period last year.
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