Rocket Fuel Inc. (FUEL) saw its loss widen to $22.47 million, or $0.49 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $20.77 million, or $0.48 a share. On an adjusted basis, net loss for the quarter was almost stable at $12.09 million, when compared with the last year period.
Revenue during the quarter dropped 9.14 percent to $95.17 million from $104.74 million in the previous year period. Gross margin for the quarter contracted 1297 basis points over the previous year period to 27.23 percent. Operating margin for the quarter stood at negative 22.83 percent as compared to a negative 18.62 percent for the previous year period.
Operating loss for the quarter was $21.73 million, compared with an operating loss of $19.50 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $2.57 million compared to negative $2.62 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 2.70 percent for the quarter compared to negative 2.51 percent in the last year period.
"Rocket Fuel's first quarter was highlighted by 70% year over year spend growth in Platform Solutions. Our Platform business represented a record 32% of the quarter's total spend, evidence of the progress we are making transitioning Rocket Fuel towards a platform-oriented software model. While we expect our Media Services business to continue to contract in the near term, we are encouraged by the growth in both adoption, and spend, from our platform services business," commented Randy Wootton, chief executive officer.
For the second-quarter, Rocket Fuel Inc. expects adjusted revenue to be in the range of $42 million to $48 million.
Operating cash flow remains negative
Rocket Fuel Inc. has spent $14.79 million cash to meet operating activities during the quarter as against cash outgo of $2.75 million in the last year period.
The company has spent $3.65 million cash to meet investing activities during the quarter as against cash outgo of $4.38 million in the last year period.
The company has spent $2.84 million cash to carry out financing activities during the quarter as against cash outgo of $3.96 million in the last year period.
Cash and cash equivalents stood at $62.76 million as on Mar. 31, 2017, down 6.88 percent or $4.64 million from $67.39 million on Mar. 31, 2016.
Working capital drops significantly
Rocket Fuel Inc. has witnessed a decline in the working capital over the last year. It stood at $4.10 million as at Mar. 31, 2017, down 76.89 percent or $13.65 million from $17.76 million on Mar. 31, 2016. Current ratio was at 1.02 as on Mar. 31, 2017, down from 1.11 on Mar. 31, 2016.
Days sales outstanding went up to 113 days for the quarter compared with 102 days for the same period last year.
At the same time, days payable outstanding went down to 89 days for the quarter from 95 for the same period last year.
Debt moves up
Rocket Fuel Inc. has witnessed an increase in total debt over the last one year. It stood at $85.97 million as on Mar. 31, 2017, up 6.83 percent or $5.50 million from $80.47 million on Mar. 31, 2016. Total debt was 32.23 percent of total assets as on Mar. 31, 2017, compared with 25.88 percent on Mar. 31, 2016. Debt to equity ratio was at 1.27 as on Mar. 31, 2017, up from 0.68 as on Mar. 31, 2016.
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