New Relic, Inc. (NEWR) saw its loss narrow to $13.88 million, or $0.27 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $18.36 million, or $0.37 a share. On the other hand, adjusted net loss for the quarter narrowed to $4.86 million, or $0.09 a share from a loss of $10.80 million or $0.22 a share, a year ago. Revenue during the quarter surged 42.63 percent to $68.10 million from $47.74 million in the previous year period. Gross margin for the quarter expanded 187 basis points over the previous year period to 81.46 percent. Operating margin for the quarter stood at negative 20.48 percent as compared to a negative 38.20 percent for the previous year period.
Operating loss for the quarter was $13.94 million, compared with an operating loss of $18.24 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $4.92 million compared to operating loss of $10.68 million in prior year period.
"In the third quarter, we delivered record revenue, while delivering significant margin expansion," said Lew Cirne, chief executive officer and founder of New Relic. "Our growth is fueled by two of the biggest strategic priorities in the enterprise today ��" the shift to cloud-based platforms, and digital initiatives to analyze the data generated by and through these platforms. When companies want to understand the performance of their applications and the resulting customer experience and business outcomes, they choose New Relic. We believe New Relic is uniquely positioned to meet these needs with our comprehensive and highly scalable cloud-based digital intelligence platform."
For financial year 2017, New Relic, Inc. projects revenue to be in the range of $260.40 million to $261.40 million. The company projects adjusted operating loss to be in the range of $27.40 million to $28.40 million. It company forecasts diluted loss per share to be in the range of $0.52 to $0.54 on adjusted basis.
For the fourth-quarter 2017, New Relic, Inc. projects revenue to be in the range of $70.30 million to $71.30 million. The company projects adjusted operating loss to be in the range of $7.70 million to $8.70 million.On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.14 to $0.16.
Operating cash flow improves significantly
New Relic, Inc. has generated cash of $9.34 million from operating activities during the nine month period, up 235.14 percent or $6.55 million, when compared with the last year period. The company has spent $9.85 million cash to meet investing activities during the nine month period as against cash outgo of $46.69 million in the last year period.
Cash flow from financing activities was $14.77 million for the nine month period, up 40.04 percent or $4.22 million, when compared with the last year period.
Cash and cash equivalents stood at $80.17 million as on Dec. 31, 2016, up 11.50 percent or $8.27 million from $71.90 million on Dec. 31, 2015.
Working capital declines
New Relic, Inc. has witnessed a decline in the working capital over the last year. It stood at $122.38 million as at Dec. 31, 2016, down 15.41 percent or $22.30 million from $144.68 million on Dec. 31, 2015. Current ratio was at 2.02 as on Dec. 31, 2016, down from 2.92 on Dec. 31, 2015.
Days sales outstanding went down to 40 days for the quarter compared with 42 days for the same period last year.
At the same time, days payable outstanding went down to 47 days for the quarter from 58 for the same period last year.
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