Marchex Inc (MCHX) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.01 million in the quarter, against a net loss of $5.85 million in the last year period. On an adjusted basis, net profit for the quarter stood at $1.59 million, or $0.04 a share compared with a net loss of $2.46 million, or $0.06 a share in the last year period.
Revenue during the quarter grew 19.85 percent to $36.85 million from $30.75 million in the previous year period. Gross margin for the quarter expanded 590 basis points over the previous year period to 45.72 percent. Operating margin for the quarter period stood at positive 0.03 percent as compared to a negative 18.94 percent for the previous year period.
Operating income for the quarter was $0.01 million, compared with an operating loss of $5.82 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.35 million compared to negative $2.92 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 9.08 percent for the quarter compared to negative 9.51 percent in the last year period.
“Marchex has a unique position in the mobile advertising analytics market by virtue of our customer base, technology and products and we expect to make progress toward improving our financial performance and returning Marchex to profitability as soon as possible,” said Michael Arends, chief financial officer.
Working capital increases marginally
Marchex Inc has recorded an increase in the working capital over the last year. It stood at $118.82 million as at Sep. 30, 2016, up 2.65 percent or $3.07 million from $115.75 million on Sep. 30, 2015. Current ratio was at 8.05 as on Sep. 30, 2016, up from 6.47 on Sep. 30, 2015.
Days sales outstanding went down to 69 days for the quarter compared with 85 days for the same period last year.
At the same time, days payable outstanding went down to 52 days for the quarter from 63 for the same period last year.
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