Rapid7, Inc. (RPD) saw its loss narrow to $9.77 million, or $0.23 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $21.11 million, or $0.53 a share. On the other hand, adjusted net loss for the quarter narrowed to $5.29 million, or $0.13 a share from a loss of $12.36 million or $0.31 a share, a year ago.
Revenue during the quarter surged 37.08 percent to $45.03 million from $32.85 million in the previous year period. Gross margin for the quarter expanded 134 basis points over the previous year period to 74.06 percent. Operating margin for the quarter stood at negative 22.08 percent as compared to a negative 63.53 percent for the previous year period.
Operating loss for the quarter was $9.94 million, compared with an operating loss of $20.87 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $5.46 million compared to operating loss of $12.12 million in prior year period.
"During the fourth quarter we saw robust demand for our data and analytics solutions that provide better visibility and faster response times at a lower cost," said Corey Thomas, president and chief executive officer of Rapid7. "Our market opportunity is expanding as we continue to deliver IT and security solutions that are accessible to the resource-constrained mass market. Further, as we add more applications to the Insight platform, more customers are choosing to consolidate their IT and security spending with Rapid7. I am pleased with our improved execution during the quarter, and as we look towards 2017, we are focused on furthering our differentiation to drive customer adoption and consistent scale and leverage in the business."
For fiscal year 2017, Rapid7, Inc. expects revenue to be in the range of $192 million to $198 million. The company expects adjusted operating loss to be in the range of $29 million to $26.50 million. It projects diluted loss per share to be in the range of $0.68 to $0.62 on adjusted basis.
For the first-quarter 2017, Rapid7, Inc. expects revenue to be in the range of $42.60 million to $44 million. The company expects adjusted operating loss to be in the range of $10.90 million to $9.90 million. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.26 to $0.24.
Operating cash flow turns positive
Rapid7, Inc. has generated cash of $9.11 million from operating activities during the year as against cash outgo of $1.91 million in the last year.
The company has spent $43.48 million cash to meet investing activities during the year as against cash outgo of $42.95 million in the last year.
Cash flow from financing activities was $1.16 million for the year, down 98.78 percent or $93.62 million, when compared with the last year.
Cash and cash equivalents stood at $53.15 million as on Dec. 31, 2016, down 38.59 percent or $33.40 million from $86.55 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Rapid7, Inc. has turned negative to $15.38 million on Dec. 31, 2016 from positive $21.10 million on Dec. 31, 2015. Current ratio was at 0.89 as on Dec. 31, 2016, down from 1.18 on Dec. 31, 2015.
Days sales outstanding went down to 50 days for the quarter compared with 62 days for the same period last year.
At the same time, days payable outstanding went up to 16 days for the quarter from 10 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
