HubSpot, Inc. (HUBS) saw its loss narrow to $10.52 million, or $0.30 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $13.55 million, or $0.40 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.80 million, or $0.05 a share from a loss of $9.02 million or $0.27 a share, a year ago.
Revenue during the quarter surged 47.95 percent to $70.59 million from $47.71 million in the previous year period. Gross margin for the quarter expanded 375 basis points over the previous year period to 77.60 percent. Operating margin for the quarter stood at negative 14.10 percent as compared to a negative 27.86 percent for the previous year period.
Operating loss for the quarter was $9.95 million, compared with an operating loss of $13.29 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $1.24 million compared to operating loss of $8.75 million in prior year period.
"We are proud to have delivered another strong quarter in Q3 of this year. For the third quarter in a row, we have reported positive cash flow, providing proof of our momentum and our commitment to strong, consistent growth across the business," said Brian Halligan, HubSpot co-founder and chief executive officer. "We've always said that the power of HubSpot is how helpful, human-centric and holistic our platform and philosophy are - those three special ingredients have helped us grow a global inbound community that reached new heights this quarter."
For financial year 2016, HubSpot, Inc. projects revenue to be in the range of $268.20 million to $269.20 million. It projects adjusted operating loss to be in the range of $15 million to $14 million. It forecasts diluted loss per share to be in the range of $0.45 to $0.43 on adjusted basis for the same period.
For the fourth-quarter, HubSpot, Inc. projects revenue to be in the range of $73.70 million to $74.70 million. It projects adjusted operating loss to be in the range of $7.60 million to $6.60 million. It forecasts diluted loss per share to be in the range of $0.22 to $0.20 on an adjusted basis for the same period.
Operating cash flow turns positive
HubSpot, Inc. has generated cash of $17.09 million from operating activities during the nine month period as against cash outgo of $3.06 million in the last year period.
The company has spent $18.46 million cash to meet investing activities during the nine month period as against cash outgo of $96.16 million in the last year period.
Cash flow from financing activities was $6.80 million for the nine month period, down 80.36 percent or $27.80 million, when compared with the last year period.
Cash and cash equivalents stood at $61.44 million as on Sep. 30, 2016, up 4.47 percent or $2.63 million from $58.81 million on Sep. 30, 2015.
Working capital declines
HubSpot, Inc. has witnessed a decline in the working capital over the last year. It stood at $49.09 million as at Sep. 30, 2016, down 17.13 percent or $10.15 million from $59.24 million on Sep. 30, 2015. Current ratio was at 1.43 as on Sep. 30, 2016, down from 1.76 on Sep. 30, 2015.
Days sales outstanding went down to 30 days for the quarter compared with 35 days for the same period last year.
At the same time, days payable outstanding went down to 16 days for the quarter from 18 for the same period last year.
Debt increases substantially
HubSpot, Inc. has witnessed an increase in total debt over the last one year. It stood at $1.01 million as on Sep. 30, 2016, up 64.93 percent or $0.40 million from $0.61 million on Sep. 30, 2015. Total debt was 0.41 percent of total assets as on Sep. 30, 2016, compared with 0.29 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.01 as on Sep. 30, 2016, when compared with the last year.
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