RUBICON PROJECT (RUBI) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $15.84 million, or $ 0.33 a share in the quarter, against a net profit of $2.28 million, or $0.05 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $7.69 million, or $0.16 a share compared with a net profit of $10.80 million, or $0.22 a share in the last year period.
Revenue during the quarter plunged 33.54 percent to $46.02 million from $69.23 million in the previous year period. Gross margin for the quarter contracted 768 basis points over the previous year period to 68.08 percent. Operating margin for the quarter stood at negative 33.62 percent as compared to a negative 2.71 percent for the previous year period.
Operating loss for the quarter was $15.47 million, compared with an operating loss of $1.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.10 million compared with $15.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2000 basis points in the quarter to 2.39 percent from 22.39 percent in the last year period.
"Our first quarter results were in line with our recently provided outlook, and we ended the quarter with a strong balance sheet which will provide us flexibility during this time of transition,” commented Michael G Barrett, president and chief executive officer of Rubicon Project. "In the coming quarters we intend to increase our focus on operating more efficiently at scale, continue to innovate for a mobile-first world and accelerate our market share capture, while also investing in important initiatives that we believe will help us return to growth. I am incredibly encouraged by the work and dedication of a terrific team of employees and am excited about our evolving plans to turn the business around."
Operating cash flow drops significantlyRUBICON PROJECT has generated cash of $2.88 million from operating activities during the quarter, down 72.99 percent or $ 7.79 million, when compared with the last year period. The company has spent $3.37 million cash to meet investing activities during the quarter as against cash inflow of $2.65 million in the last year period.
Cash flow from financing activities was $0.37 million for the quarter, down 94.52 percent or $6.35 million, when compared with the last year period.
Cash and cash equivalents stood at $149.37 million as on Mar. 31, 2017, up 9.37 percent or $12.80 million from $136.57 million on Mar. 31, 2016.
Working capital increases
RUBICON PROJECT has recorded an increase in the working capital over the last year. It stood at $171.07 million as at Mar. 31, 2017, up 24.16 percent or $33.28 million from $137.79 million on Mar. 31, 2016. Current ratio was at 2.06 as on Mar. 31, 2017, up from 1.74 on Mar. 31, 2016.
Days sales outstanding went up to 251 days for the quarter compared with 248 days for the same period last year.
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