RIGHTSIDE GROUP, LTD (NAME) saw its loss widen to $21.31 million, or $1.09 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.12 million, or $0.22 a share.
Revenue during the quarter dropped 8.70 percent to $14.91 million from $16.33 million in the previous year period. Gross margin for the quarter expanded 453 basis points over the previous year period to 47.72 percent. Operating margin for the quarter stood at negative 37.82 percent as compared to a negative 39.87 percent for the previous year period.
Operating loss for the quarter was $5.64 million, compared with an operating loss of $6.51 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.82 million compared with $2.56 million in the prior year period. At the same time, adjusted EBITDA margin improved 320 basis points in the quarter to 18.89 percent from 15.70 percent in the last year period.
"In the fourth quarter, we executed on our strategy to deliver revenue growth in our higher margin businesses - focusing on our new gTLD registry business and our retail registrar, Name.com, while optimizing for margin expansion," said chief executive officer Taryn Naidu. "For the full year 2016, registry services revenue increased 40% year-over-year while Adjusted EBITDA increased 92% year-over-year. The divestiture of eNom has strengthened our financial profile and, as announced today, enabled us to initiate a significant stock repurchase program."
For fiscal year 2017, RIGHTSIDE GROUP forecasts revenue to be in the range of $58 million to $62 million.
Debt comes down significantly
RIGHTSIDE GROUP has recorded a decline in total debt over the last one year. It stood at $13.78 million as on Dec. 31, 2016, down 45.32 percent or $11.42 million from $25.20 million on Dec. 31, 2015. Total debt was 4.53 percent of total assets as on Dec. 31, 2016, compared with 7.47 percent on Dec. 31, 2015. Debt to equity ratio was at 0.12 as on Dec. 31, 2016, down from 0.18 as on Dec. 31, 2015.
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