Quinstreet (QNST) saw its loss widen to $7.85 million, or $0.17 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.46 million, or $0.14 a share. On the other hand, adjusted net loss for the quarter widened to $1.66 million, or $0.04 a share from a loss of $1.48 million or $0.03 a share, a year ago.
Revenue during the quarter went up marginally by 1 percent to $65.61 million from $64.96 million in the previous year period. Gross margin for the quarter contracted 108 basis points over the previous year period to 6.02 percent. Operating margin for the quarter stood at negative 11.78 percent as compared to a negative 9.77 percent for the previous year period.
Operating loss for the quarter was $7.73 million, compared with an operating loss of $6.35 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.27 million compared with $0.16 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 0.42 percent for the quarter compared to 0.24 percent in the last year period.
"Fiscal Q2 results were generally consistent with our expectations, with revenue up about 1% year-over-year," commented Doug Valenti, QuinStreet chief executive officer. "We continued to see strong growth in the Financial Services client vertical, our largest business. Education remained challenging, but recent tone and trends are more encouraging.
Operating cash flow turns positiveQuinstreet has generated cash of $2.09 million from operating activities during the first half as against cash outgo of $4.96 million in the last year period. The company has spent $1.74 million cash to meet investing activities during the first six months as against cash outgo of $2.98 million in the last year period. It has incurred net capital expenditure of $1.64 million on net basis during the first six months, down 44.92 percent or $1.34 million from year ago period.
The company has spent $16.58 million cash to carry out financing activities during the first six months as against cash outgo of $1.72 million in the last year period.
Cash and cash equivalents stood at $37.50 million as on Dec. 31, 2016, down 26.12 percent or $13.25 million from $50.75 million on Dec. 31, 2015.
Working capital drops significantly
Quinstreet has witnessed a decline in the working capital over the last year. It stood at $40.46 million as at Dec. 31, 2016, down 27.93 percent or $15.68 million from $56.14 million on Dec. 31, 2015. Current ratio was at 1.90 as on Dec. 31, 2016, down from 2.34 on Dec. 31, 2015.
Days sales outstanding were almost stable at 61 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 30 days for the quarter from 28 for the same period last year.
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