New Relic, Inc. (NEWR) saw its loss narrow to $14.13 million, or $0.28 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $14.82 million, or $0.31 a share. On the other hand, adjusted net loss for the quarter narrowed to $4.78 million, or $0.09 a share from a loss of $8.27 million or $0.17 a share, a year ago.
Revenue during the quarter surged 47.78 percent to $63.44 million from $42.93 million in the previous year period. Gross margin for the quarter expanded 229 basis points over the previous year period to 81.43 percent. Operating margin for the quarter stood at negative 22.53 percent as compared to a negative 34.86 percent for the previous year period.
Operating loss for the quarter was $14.29 million, compared with an operating loss of $14.96 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $4.94 million compared to operating loss of $8.42 million in prior year period.
"New Relic is rapidly becoming the global enterprise standard for a new category of software we call Digital Intelligence. At the end of our second fiscal quarter, our base of customers spending more than one million dollars per year grew by over 100% year-over-year, and has increased more than tenfold since our IPO. And the number of New Relic customers spending more than $100,000 annually has grown almost threefold since our IPO," said Lew Cirne, founder and chief executive officer, New Relic.
For the third-quarter, New Relic forecasts revenue to be in the range of $65.50 million to $66.50 million. The company forecasts adjusted operating income to be in the range of $7.20 million to $8.20 million. On an adjusted basis, The company expects diluted earnings per share to be in the range of $0.14 to $0.16.
For financial year 2017, New Relic forecasts revenue to be in the range of $255 million to $258 million for fiscal year 2017. The company forecasts adjusted operating income to be in the range of $30.50 million to $32.50 million. The company expects diluted earnings per share to be in the range of $0.58 to $0.62 on adjusted basis.
Operating cash flow turns positive
New Relic, Inc. has generated cash of $3.84 million from operating activities during the first half as against cash outgo of $4.13 million in the last year period.
Cash flow from investing activities was $11.79 million for the first half as against cash outgo of $39.18 million in the last year period.
Cash flow from financing activities was $12.41 million for the first six months, up 81.27 percent or $5.56 million, when compared with the last year period.
Cash and cash equivalents stood at $93.94 million as on Sep. 30, 2016, up 36.56 percent or $25.15 million from $68.80 million on Sep. 30, 2015.
Working capital declines
New Relic, Inc. has witnessed a decline in the working capital over the last year. It stood at $128.30 million as at Sep. 30, 2016, down 18.64 percent or $29.40 million from $157.70 million on Sep. 30, 2015. Current ratio was at 2.21 as on Sep. 30, 2016, down from 3.62 on Sep. 30, 2015.
Days sales outstanding went down to 33 days for the quarter compared with 42 days for the same period last year.
At the same time, days payable outstanding went up to 60 days for the quarter from 55 for the same period last year.
