HubSpot, Inc (HUBS) saw its loss narrow to $8.08 million, or $0.22 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.15 million, or $0.29 a share. On an adjusted basis, net profit for the quarter stood at $1.24 million, or $0.03 a share compared with a net loss of $3.90 million, or $0.11 a share in the last year period. Revenue during the quarter surged 39.50 percent to $82.25 million from $58.96 million in the previous year period. Gross margin for the quarter expanded 294 basis points over the previous year period to 79.24 percent. Operating margin for the quarter stood at negative 9.73 percent as compared to a negative 16.72 percent for the previous year period.
Operating loss for the quarter was $8 million, compared with an operating loss of $9.86 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $1.32 million compared to operating loss of $3.61 million in prior year period.
“Q1 was another solid quarter for HubSpot and we’re very pleased with the results,” said Brian Halligan, co-founder and chief executive officer. “Between the strong revenue growth and improved operating leverage we continue to show across the business, we see great signs that our marketing and sales products are really resonating with our customers. In particular, I’m incredibly excited about the impact we’re making with our growth stack customers who have adopted both our marketing and sales products and the huge opportunity we have to elevate the value we bring to both established and new customers around the world.”
For the second-quarter, HUBSPOT projects revenue to be in the range of $85 million to $86 million. HUBSPOT projects revenue to be in the range of $355.50 million to $359.50 million for financial year 2017. The company projects adjusted operating loss to be $1 million for the second-quarter. For fiscal year 2017, the company projects adjusted operating loss to be in the range of $5 million to $3 million. On an adjusted basis, the company expects diluted loss per share to be $0.02 for the second-quarter. For financial year 2017, the company forecasts diluted loss per share to be in the range of $0.10 to $0.04 on adjusted basis.
Operating cash flow improves significantly
HubSpot, Inc has generated cash of $19.09 million from operating activities during the quarter, up 500.76 percent or $15.91 million, when compared with the last year period. The company has spent $12.38 million cash to meet investing activities during the quarter as against cash outgo of $8.17 million in the last year period.
Cash flow from financing activities was $2.95 million for the quarter, up 55.76 percent or $1.06 million, when compared with the last year period.
Cash and cash equivalents stood at $69.79 million as on Mar. 31, 2017, up 31.62 percent or $16.77 million from $53.02 million on Mar. 31, 2016.
Working capital declines
HubSpot, Inc has witnessed a decline in the working capital over the last year. It stood at $44.14 million as at Mar. 31, 2017, down 13.57 percent or $6.93 million from $51.07 million on Mar. 31, 2016. Current ratio was at 1.33 as on Mar. 31, 2017, down from 1.51 on Mar. 31, 2016.
Days sales outstanding went down to 33 days for the quarter compared with 39 days for the same period last year.
At the same time, days payable outstanding went down to 15 days for the quarter from 17 for the same period last year.
Debt moves up
HubSpot, Inc has witnessed an increase in total debt over the last one year. It stood at $1.08 million as on Mar. 31, 2017, up 15.42 percent or $0.14 million from $0.93 million on Mar. 31, 2016. Total debt was 0.39 percent of total assets as on Mar. 31, 2017, compared with 0.41 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.01 as on Mar. 31, 2017, when compared with the last year.
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