Zendesk, Inc. (ZEN) saw its loss almost stable for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $24.48 million, or $0.27 a share. On the other hand, adjusted net loss for the quarter narrowed to $3.81 million, or $0.04 a share from a loss of $6.68 million or $0.07 a share, a year ago.
Revenue during the quarter surged 41.47 percent to $88.62 million from $62.65 million in the previous year period. Gross margin for the quarter expanded 257 basis points over the previous year period to 71.13 percent. Operating margin for the quarter stood at negative 28.36 percent as compared to a negative 38.94 percent for the previous year period.
Operating loss for the quarter was $25.13 million, compared with an operating loss of $24.39 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $4.39 million compared to operating loss of $6.59 million in prior year period.
For fiscal year 2017, Zendesk, Inc. expects revenue to be in the range of $415 million to $425 million. The company expects operating loss to be in the range of $109 million to $113 million and expects adjusted operating loss to be in the range of $16 million to $20 million.
For the first-quarter 2017, Zendesk, Inc. expects revenue to be in the range of $91 million to $93 million. The company expects operating loss to be in the range of $28 million to $29 million and expects adjusted operating loss to be in the range of $6 million to $7 million.
Operating cash flow improves significantly
Zendesk, Inc. has generated cash of $24.52 million from operating activities during the year, up 359.82 percent or $19.19 million, when compared with the last year.
The company has spent $182.36 million cash to meet investing activities during the year as against cash outgo of $72.72 million in the last year.
Cash flow from financing activities was $35.63 million for the year, down 82.46 percent or $167.48 million, when compared with the last year.
Cash and cash equivalents stood at $93.68 million as on Dec. 31, 2016, down 56.68 percent or $122.55 million from $216.23 million on Dec. 31, 2015.
Working capital drops significantly
Zendesk, Inc. has witnessed a decline in the working capital over the last year. It stood at $112.60 million as at Dec. 31, 2016, down 32.10 percent or $53.23 million from $165.83 million on Dec. 31, 2015. Current ratio was at 1.67 as on Dec. 31, 2016, down from 2.41 on Dec. 31, 2015.
Days sales outstanding were almost stable at 19 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 8 days for the quarter from 22 for the same period last year.
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