Xactly Corp (XTLY) saw its loss narrow to $4.22 million, or $0.14 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $10.36 million, or $0.36 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.97 million, or $0.06 a share from a loss of $5.10 million or $0.18 a share, a year ago.
Revenue during the quarter grew 25.39 percent to $23.94 million from $19.10 million in the previous year period. Gross margin for the quarter expanded 268 basis points over the previous year period to 61.58 percent. Operating margin for the quarter stood at negative 16.88 percent as compared to a negative 28.97 percent for the previous year period.
Operating loss for the quarter was $4.04 million, compared with an operating loss of $5.53 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.82 million compared to negative $3.54 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 3.40 percent for the quarter compared to negative 18.52 percent in the last year period.
"We are pleased to report another successful quarter," said Christopher W. Cabrera, founder and chief executive officer of Xactly Corporation. "Companies choose our solutions because we enable them to drive employee behavior. In particular, Xactly InsightsTM gives customers the actionable data they need to drive higher business performance."
For the fiscal year 2017, Xactly Corp projects revenue to be in the range of $94.80 million to $95.60 million. The company expects net loss to be in the range of $19.40 million to $18.60 million and forecasts adjusted net loss to be in the range of $11.10 million to $10.30 million. It forecasts diluted loss per share to be in the range of $0.63 to $0.60 and forecasts diluted loss per share to be in the range of $0.36 to $0.33 on adjusted basis.
For the fourth-quarter 2017, Xactly Corp projects revenue to be in the range of $23.60 million to $24.40 million. The company expects net loss to be in the range of $6.50 million to $5.70 million and forecasts adjusted net loss to be in the range of $4 million to $3.20 million. It forecasts diluted loss per share to be in the range of $0.21 to $0.18. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.13 to $0.10.
Operating cash flow remains negative
Xactly Corp has spent $4.54 million cash to meet operating activities during the nine month period as against cash outgo of $4.64 million in the last year period.
The company has spent $28.83 million cash to meet investing activities during the nine month period as against cash outgo of $3.89 million in the last year period.
Cash flow from financing activities was $1.60 million for the nine month period, down 96.13 percent or $39.68 million, when compared with the last year period.
Cash and cash equivalents stood at $16.24 million as on Oct. 31, 2016, down 68.81 percent or $35.81 million from $52.05 million on Oct. 31, 2015.
Working capital drops significantly
Xactly Corp has witnessed a decline in the working capital over the last year. It stood at $2.83 million as at Oct. 31, 2016, down 81.55 percent or $12.50 million from $15.33 million on Oct. 31, 2015. Current ratio was at 1.04 as on Oct. 31, 2016, down from 1.27 on Oct. 31, 2015.
Days sales outstanding were almost stable at 71 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 18 days for the quarter from 19 for the same period last year.
Debt comes down
Xactly Corp has recorded a decline in total debt over the last one year. It stood at $13.95 million as on Oct. 31, 2016, down 15.10 percent or $2.48 million from $16.43 million on Oct. 31, 2015. Total debt was 16.48 percent of total assets as on Oct. 31, 2016, compared with 18.89 percent on Oct. 31, 2015. Debt to equity ratio was at 2.04 as on Oct. 31, 2016, up from 1.02 as on Oct. 31, 2015.
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