YuMe, Inc (YUME) saw its loss narrow to $4.46 million, or $0.13 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $6.53 million, or $0.19 a share.
Revenue during the quarter dropped 10.08 percent to $34.95 million from $38.87 million in the previous year period. Gross margin for the quarter expanded 359 basis points over the previous year period to 48.36 percent. Operating margin for the quarter stood at negative 13.03 percent as compared to a negative 16.34 percent for the previous year period.
Operating loss for the quarter was $4.55 million, compared with an operating loss of $6.35 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.71 million compared to negative $2.80 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 2.03 percent for the quarter compared to negative 7.19 percent in the last year period.
Mr. Porrini commented, “I am honored to lead YuMe’s talented and experienced team. In the third quarter, we exceeded our gross margin and our operating expense improvement goals and grew our programmatic channel revenue, but execution issues in the back-half of the quarter resulted in lower-than-expected revenue and adjusted EBITDA. Our strong gross margin performance illustrates the strength of our platform, and our top priorities are to unlock the value of this strategic asset by improving our business fundamentals while exploring a range of strategic alternatives.”
Working capital increases
Yume Inc has recorded an increase in the working capital over the last year. It stood at $75.61 million as at Sep. 30, 2016, up 16.43 percent or $10.67 million from $64.94 million on Sep. 30, 2015. Current ratio was at 3.08 as on Sep. 30, 2016, up from 2.74 on Sep. 30, 2015. Days sales outstanding went up to 129 days for the quarter compared with 121 days for the same period last year.
At the same time, days payable outstanding went up to 42 days for the quarter from 34 for the same period last year.
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