RUBICON PROJ INC (RUBI) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $3.53 million, or $ 0.07 a share in the quarter, against a net loss of $3.01 million, or $0.07 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $15.74 million, or $0.32 a share compared with $10.86 million or $0.23 a share, a year ago. Revenue during the quarter went up marginally by 2.42 percent to $65.81 million from $64.25 million in the previous year period. Gross margin for the quarter contracted 128 basis points over the previous year period to 72.96 percent. Operating margin for the quarter stood at negative 3.61 percent as compared to a negative 8.04 percent for the previous year period.
Operating loss for the quarter was $2.37 million, compared with an operating loss of $5.17 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.31 million compared with $12.58 million in the prior year period. At the same time, adjusted EBITDA margin improved 369 basis points in the quarter to 23.26 percent from 19.57 percent in the last year period.
"We executed well against our key strategic drivers of mobile, video, orders and header bidding in the third quarter, delivering both top line and bottom line results that were within range of our guidance," said Frank Addante, chief executive officer and Founder of Rubicon Project.
For the fourth-quarter, Rubicon Proj Inc expects revenue to be in the range of $65 million to $75 million. Rubicon Proj Inc expects revenue to be in the range of $271 million to $281 million for financial year 2016. For the fourth-quarter, Rubicon Proj Inc expects adjusted revenue to be in the range of $60 million to $68 million. Rubicon Proj Inc expects adjusted revenue to be in the range of $249 million to $257 million for financial year 2016. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.08 to $0.16 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $0.86 to $0.94 on adjusted basis.
Operating cash flow improves significantly
Rubicon Proj Inc has generated cash of $48.81 million from operating activities during the nine month period, up 130.40 percent or $27.63 million, when compared with the last year period. The company has spent $21.02 million cash to meet investing activities during the nine month period as against cash outgo of $49.65 million in the last year period.
Cash flow from financing activities was $10.05 million for the nine month period, down 11.31 percent or $1.28 million, when compared with the last year period.
Cash and cash equivalents stood at $154.26 million as on Sep. 30, 2016, up 93.16 percent or $74.40 million from $79.86 million on Sep. 30, 2015.
Working capital increases sharply
Rubicon Proj Inc has recorded an increase in the working capital over the last year. It stood at $167.43 million as at Sep. 30, 2016, up 70.14 percent or $69.02 million from $98.41 million on Sep. 30, 2015. Current ratio was at 1.89 as on Sep. 30, 2016, up from 1.58 on Sep. 30, 2015.
Days sales outstanding went down to 210 days for the quarter compared with 219 days for the same period last year.
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