INSTRUCTURE INC (INST) saw its loss narrow to $12.73 million, or $0.44 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $13.74 million, or $0.50 a share. On the other hand, adjusted net loss for the quarter narrowed to $9.35 million, or $0.33 a share from a loss of $11.56 million or $0.42 a share, a year ago.
Revenue during the quarter surged 45.84 percent to $33.98 million from $23.30 million in the previous year period. Gross margin for the quarter expanded 324 basis points over the previous year period to 71.70 percent. Operating margin for the quarter stood at negative 37.64 percent as compared to a negative 59.03 percent for the previous year period.
Operating loss for the quarter was $12.79 million, compared with an operating loss of $13.75 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $9.42 million compared to operating loss of $11.52 million in prior year period.
"We had a great start to the year as we delivered strong results across the board," said Josh Coates, chief executive officer at Instructure. "First quarter revenue grew 46% on a year-over-year basis and we made continued substantial improvements to our operating margin. Throughout the quarter we continued to enhance the features and functionality of both Canvas and Bridge, resulting in strong customer adoption."
For the second-quarter, INSTRUCTURE projects revenue to be in the range of $150.70 million to $152.20 million. It forecasts adjusted net loss to be in the range of $37.70 million to $36.70. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $1.29 to $1.26.
For the fiscal year 2017, INSTRUCTURE projects revenue to be in the range of $36.80 million to $37.40 million. It forecasts adjusted net loss to be in the range of $10.50 million to $9.90 million. , The company forecasts diluted loss per share to be in the range of $0.36 to $0.34 on adjusted basis.
Operating cash flow remains negativeINSTRUCTURE has spent $27.75 million cash to meet operating activities during the quarter as against cash outgo of $18.85 million in the last year period. Cash flow from investing activities was $10.48 million for the quarter as against cash outgo of $2.09 million in the last year period. It has incurred capital expenditure of $3.42 million on net basis during the quarter, up 41.85 percent or $1.01 million from year ago period.
Cash flow from financing activities was $1 million for the quarter, up 709.76 percent or $0.87 million, when compared with the last year period.
Cash and cash equivalents stood at $28.27 million as on Mar. 31, 2017, down 59.42 percent or $41.39 million from $69.66 million on Mar. 31, 2016.
Working capital turns negative
Working capital of INSTRUCTURE has turned negative to $7.67 million on Mar. 31, 2017 from positive $30.08 million on Mar. 31, 2016. Current ratio was at 0.89 as on Mar. 31, 2017, down from 1.58 on Mar. 31, 2016.
Days sales outstanding went up to 17 days for the quarter compared with 13 days for the same period last year.
At the same time, days payable outstanding went down to 21 days for the quarter from 23 for the same period last year.
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