Social Reality, Inc. (SCRI) saw its loss widen to $2.38 million, or $0.40 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.66 million, or $0.12 a share.
Revenue during the quarter grew 28.97 percent to $9.53 million from $7.39 million in the previous year period. Gross margin for the quarter contracted 2871 basis points over the previous year period to 26.69 percent. Operating margin for the quarter stood at negative 13.72 percent as compared to a positive 4.63 percent for the previous year period.
Operating loss for the quarter was $1.31 million, compared with an operating income of $0.34 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.73 million compared with $0.77 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.70 percent for the quarter compared to 10.47 percent in the last year period.
Christopher Miglino, Social Reality's chief executive officer and chairman stated, "During the first half of the year, we launched and enhanced new products for our custom data management platforms, and tripled our sales team. As a result, our third quarter revenues generated strong top-line growth, reflecting the strength of our business and our relentless focus on providing our clients with the most innovative advertising tools. We are also extremely proud of our recent corporate developments, as we uplisted onto Nasdaq on October 13, 2016, and began trading under a new ticker, SRAX.”
Operating cash flow turns positive
Social Reality, Inc. has generated cash of $0.87 million from operating activities during the nine month period as against cash outgo of $1.12 million in the last year period.
Cash flow from financing activities was $2.29 million for the nine month period, up 564.26 percent or $1.94 million, when compared with the last year period.
Cash and cash equivalents stood at $4.24 million as on Sep. 30, 2016, up 310.59 percent or $3.21 million from $1.03 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Social Reality, Inc. was negative $9.43 million on Sep. 30, 2016 compared with negative $5.11 million on Sep. 30, 2015. Current ratio was at 0.48 as on Sep. 30, 2016, down from 0.66 on Sep. 30, 2015.
Days sales outstanding went down to 65 days for the quarter compared with 112 days for the same period last year.
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