LendingTree, Inc (TREE) has reported 77.15 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $7.32 million, or $0.57 a share in the quarter, compared with $32.05 million, or $2.47 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11.04 million, or $0.87 a share compared with $34.92 million or $2.69 a share, a year ago.
Revenue during the quarter grew 28.72 percent to $100.84 million from $78.34 million in the previous year period. Gross margin for the quarter expanded 38 basis points over the previous year period to 96.59 percent. Total expenses were 86.71 percent of quarterly revenues, down from 89.47 percent for the same period last year. This has led to an improvement of 276 basis points in operating margin to 13.29 percent.
Operating income for the quarter was $13.40 million, compared with $8.25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $18.91 million compared with $11.98 million in the prior year period. At the same time, adjusted EBITDA margin improved 346 basis points in the quarter to 18.75 percent from 15.29 percent in the last year period.
'Simply stated, the company's fourth quarter results exceeded our expectations and capped off another terrific year at LendingTree,” said Doug Lebda, Chairman and Chief executive officer. “Throughout 2016 our team excelled at managing the business through a multitude of headwinds affecting several of our largest categories. Not only did we deliver outstanding financial results, growing revenue 51% and adjusted EBITDA by 71%, our accomplishments in the fourth quarter and throughout the year are fully aligned with our long-term strategy. We strengthened our foundation and are well-positioned for continued growth as we head into 2017 and beyond. The company is already off to a solid start this year as we're laser-focused on executing against the strategic initiatives laid out in December.'
For the first-quarter 2017, LendingTree, Inc expects revenue to be in the range of $122 million to $126 million.
For fiscal year 2017, LendingTree, Inc expects revenue to be in the range of $500 million to $520 million.
Working capital drops significantly
LendingTree, Inc has witnessed a decline in the working capital over the last year. It stood at $73.92 million as at Dec. 31, 2016, down 61.41 percent or $117.64 million from $191.56 million on Dec. 31, 2015. Current ratio was at 2.11 as on Dec. 31, 2016, down from 4.55 on Dec. 31, 2015. Days sales outstanding went up to 19 days for the quarter compared with 18 days for the same period last year.
At the same time, days payable outstanding went down to 75 days for the quarter from 89 for the same period last year.
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