Financial Engines (FNGN) has reported 34.16 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $9.04 million, or $0.14 a share in the quarter, compared with $6.74 million, or $0.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $18.60 million, or $0.29 a share compared with $12.62 million or $0.24 a share, a year ago. 

Revenue during the quarter surged 43.82 percent to $113.22 million from $78.72 million in the previous year period. Gross margin for the quarter contracted 155 basis points over the previous year period to 55.92 percent. Total expenses were 86.03 percent of quarterly revenues, down from 86.19 percent for the same period last year. This has led to an improvement of 16 basis points in operating margin to 13.97 percent.

Operating income for the quarter was $15.82 million, compared with $10.87 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $36.23 million compared with $24.86 million in the prior year period. At the same time, adjusted EBITDA margin improved 42 basis points in the quarter to 32 percent from 31.58 percent in the last year period.  

"I reflect on our 2016 accomplishments with pride and excitement. During the year, we seamlessly integrated our first acquisition, delivered new services to market, deepened our client relationships, and expanded our provider network while delivering healthy earnings growth," said Larry Raffone, president and chief executive officer of Financial Engines. "As we enter 2017, there is more work ahead but I believe our fundamentals are strong and the building blocks are in place to help drive our future growth. We are focused on executing on our long-term plan and optimizing our business to help more people achieve their financial goals."

For financial year 2017, Financial Engines forecasts revenue to be in the range of $480 million to $487 million. It projects net income to be in the range of $53 million to $55 million.                                 

The company has spent $248.59 million cash to meet investing activities during the year as against cash inflow of $129.17 million in the last year.

Cash flow from financing activities was $2.85 million for the year as against cash outgo of $21.78 million in the last year period.

Cash and cash equivalents stood at $134.25 million as on Dec. 31, 2016, down 56.02 percent or $170.97 million from $305.22 million on Dec. 31, 2015.

Working capital drops significantly
Financial Engines has witnessed a decline in the working capital over the last year. It stood at $170.50 million as at Dec. 31, 2016, down 53.77 percent or $198.27 million from $368.77 million on Dec. 31, 2015. Current ratio was at 3.19 as on Dec. 31, 2016, down from 7.68 on Dec. 31, 2015.