Techtarget, Inc. (TTGT) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.02 million in the quarter, against a net profit of $2.04 million in the last year period. On the other hand, adjusted net income for the quarter stood at $1.57 million, or $0.06 a share compared with $3.74 million or $0.11 a share, a year ago.

Revenue during the quarter dropped 11.23 percent to $25.75 million from $29.01 million in the previous year period. Gross margin for the quarter contracted 366 basis points over the previous year period to 70.44 percent. Total expenses were 97.87 percent of quarterly revenues, up from 88.10 percent for the same period last year. That has resulted in a contraction of 977 basis points in operating margin to 2.13 percent.

Operating income for the quarter was $0.55 million, compared with $3.45 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $3.73 million compared with $6.88 million in the prior year period. At the same time, adjusted EBITDA margin contracted 924 basis points in the quarter to 14.47 percent from 23.71 percent in the last year period.

For the fourth-quarter 2016, Techtarget, Inc. projects revenue to be in the range of $25.50 million to $27 million.

Working capital increases

Techtarget, Inc. has recorded an increase in the working capital over the last year. It stood at $53.83 million as at Sep. 30, 2016, up 22.65 percent or $9.94 million from $43.89 million on Sep. 30, 2015. Current ratio was at 3.78 as on Sep. 30, 2016, down from 3.80 on Sep. 30, 2015.

Days sales outstanding went up to 98 days for the quarter compared with 92 days for the same period last year.

At the same time, days payable outstanding was almost stable at 28 days for the quarter, when compared with the previous year period.