Web.com Group, Inc. (WEB) has reported an 1,834.12 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $6.52 million, or $0.13 a share in the quarter, compared with $0.34 million, or $0.01 a share for the same period last year.
Revenue during the quarter grew 27.85 percent to $185.12 million from $144.80 million in the previous year period. Gross margin for the quarter expanded 328 basis points over the previous year period to 68.71 percent. Total expenses were 88.90 percent of quarterly revenues, down from 95.23 percent for the same period last year. This has led to an improvement of 632 basis points in operating margin to 11.10 percent.
Operating income for the quarter was $20.54 million, compared with $6.91 million in the previous year period.
However, the adjusted operating income for the quarter stood at $41.63 million compared to $35.12 million in the prior year period. At the same time, adjusted operating margin contracted 176 basis points in the quarter to 22.49 percent from 24.25 percent in the last year period.
"Web.com reported a strong start to the year with solid operating results exceeding our guidance on revenue and profitability. Our first quarter performance is a reflection of the significant progress we have made carrying out our strategy, and we remain confident in our goal of reaccelerating growth in the second half of the year," said David L. Brown, chairman, chief executive officer and president of Web.com.
Operating cash flow improves significantly
Web.com Group, Inc. has generated cash of $33.19 million from operating activities during the quarter, up 129.28 percent or $18.71 million, when compared with the last year period.
The company has spent $13.77 million cash to meet investing activities during the quarter as against cash outgo of $304.14 million in the last year period.
The company has spent $15.40 million cash to carry out financing activities during the quarter as against cash inflow of $282.96 million in the last year period.
Cash and cash equivalents stood at $24.47 million as on Mar. 31, 2017, up 104.05 percent or $12.48 million from $11.99 million on Mar. 31, 2016.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
