Revenue during the quarter grew 21.61 percent to $101.06 million from $83.10 million in the previous year period. Gross margin for the quarter contracted 472 basis points over the previous year period to 60.43 percent. Total expenses were 91.35 percent of quarterly revenues, up from 87.02 percent for the same period last year. That has resulted in a contraction of 433 basis points in operating margin to 8.65 percent.

Operating income for the quarter was $8.74 million, compared with $10.78 million in the previous year period.

However, the adjusted operating income for the quarter stood at $22.10 million compared to $20.80 million in the prior year period. At the same time, adjusted operating margin contracted 316 basis points in the quarter to 21.87 percent from 25.03 percent in the last year period.

"2016 was an outstanding year for WageWorks. Our sales team delivered another record performance and we just completed a successful open enrollment season that included onboarding the largest number of participants in our history. We saw increased demand for all of our products, with continued strength in HSAs and FSAs. There was a significant uptick in employers interested in our full suite of Consumer Directed Benefits and selecting us to administer multiple offerings. We added a number of new carrier relationships and channel partners, including our first rideshare partner. We acquired ADP’s CHSA and COBRA businesses and while that transaction closed about two weeks later than we were expecting, we are pleased with the results we are seeing and encouraged by the number of new business opportunities we are already receiving from the ongoing partnership we established as part of that transaction. We continue to see positive momentum in all aspects of our business and enter 2017 well positioned to execute on the foundation that we built in 2016,” said Joe Jackson, Chief Executive Officer of WageWorks.

The company has spent $283.40 million cash to meet investing activities during the year as against cash outgo of $37.97 million in the last year.

Cash flow from financing activities was $195.80 million for the year, up 1,628.95 percent or $184.48 million, when compared with the last year.

Cash and cash equivalents stood at $678.30 million as on Dec. 31, 2016, up 35.41 percent or $177.38 million from $500.92 million on Dec. 31, 2015.

Working capital declines
WageWorks, Inc has witnessed a decline in the working capital over the last year. It stood at $113.67 million as at Dec. 31, 2016, down 6.66 percent or $8.11 million from $121.78 million on Dec. 31, 2015. Current ratio was at 1.17 as on Dec. 31, 2016, down from 1.26 on Dec. 31, 2015.