Revenue during the quarter dropped 5.44 percent to $12.13 million from $12.82 million in the previous year period. Gross margin for the quarter contracted 857 basis points over the previous year period to 72.24 percent. Total expenses were 98.81 percent of quarterly revenues, up from 79.69 percent for the same period last year. That has resulted in a contraction of 1912 basis points in operating margin to 1.19 percent.

Operating income for the quarter was $0.14 million, compared with $2.60 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $2.59 million compared with $4.63 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1475 basis points in the quarter to 21.34 percent from 36.10 percent in the last year period.

Reis chief executive officer, Lloyd Lynford, stated, "Reis had a very impressive first quarter. As expected, our subscription revenue growth rate has strengthened, a trend which will further accelerate during the second half of 2017 as a result of improving renewal rates and the adoption of our new products. I am pleased to see our quarterly renewal rate, including price increases, reach 93.7% for the first quarter of 2017, a key factor in our sequential quarterly subscription revenue growth of 2.1%. In addition, our deferred revenue and aggregate revenue under contract increased 8.6% and 6.3%, respectively, over last years first quarter. Our "Every Comp, Everywhere” campaign with respect to our comparable sales product and our Affordable Housing module continue to distinguish the Reis offering from competitors. With our last difficult comparable reporting quarter behind us, we are confident that the resurgence in our financial performance will become apparent and reward all of Reis’s stakeholders. We have made the critical investments necessary to generate sustained growth."

Days sales outstanding went up to 84 days for the quarter compared with 74 days for the same period last year.