Rightside Group, Ltd. (NAME) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $69.75 million, or $ 3.56 a share in the quarter, against a net loss of $5.11 million, or $0.27 a share in the last year period.
Revenue during the quarter dropped 13.13 percent to $14.43 million from $16.61 million in the previous year period. Gross margin for the quarter expanded 468 basis points over the previous year period to 41.22 percent. Operating margin for the quarter stood at negative 36.82 percent as compared to a negative 42.23 percent for the previous year period.
Operating loss for the quarter was $5.31 million, compared with an operating loss of $7.01 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $0.94 million compared to negative $2.24 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 6.55 percent for the quarter compared to negative 13.46 percent in the last year period.
"In the first quarter of 2017, we continued to execute on our strategy to deliver revenue growth in our higher margin businesses and drive operating efficiencies throughout our business model," said chief executive officer Taryn Naidu. "Registry revenue grew 20% and total company gross margin of 41% improved 470 basis points over the prior year period. During the quarter, we successfully completed the divesture of eNom as we continue to focus on growing and driving margin expansion in our new gTLD registry business and our retail registrar, Name.com. We remain committed to delivering shareholder value and during the quarter we initiated our share buyback program, repurchasing approximately $3.0 million in common stock year-to-date."
Rightside Group, Ltd. projects revenue to be in the range of $58 million to $62 million for financial year 2017.
Working capital increases sharply
Rightside Group, Ltd. has recorded an increase in the working capital over the last year. It stood at $72.24 million as at Mar. 31, 2017, up 748.47 percent or $63.73 million from $8.51 million on Mar. 31, 2016. Current ratio was at 3.55 as on Mar. 31, 2017, up from 1.06 on Mar. 31, 2016.
Days sales outstanding went down to 54 days for the quarter compared with 66 days for the same period last year.
At the same time, days payable outstanding went down to 43 days for the quarter from 45 for the same period last year.
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