Rocket Fuel Inc. (FUEL) saw its loss widen to $17.49 million, or $0.38 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $12.68 million, or $0.29 a share. On the other hand, adjusted net loss for the quarter widened to $3.99 million, or $0.09 a share from a loss of $1.85 million or $0.04 a share, a year ago. Revenue during the quarter went down marginally by 0.46 percent to $124.83 million from $125.40 million in the previous year period. Gross margin for the quarter contracted 1208 basis points over the previous year period to 31.55 percent. Operating margin for the quarter stood at negative 11.72 percent as compared to a negative 8.38 percent for the previous year period.
Operating loss for the quarter was $14.64 million, compared with an operating loss of $10.51 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.53 million compared with $8.90 million in the prior year period. At the same time, adjusted EBITDA margin contracted 186 basis points in the quarter to 5.23 percent from 7.10 percent in the last year period.
"2016 was a transformational year for Rocket Fuel. We sharpened our strategy to become the industry-leading predictive marketing platform, and reorganized the company to support our continued transformation into a SaaS company, selling both technology and services. We are excited to report that in the fourth quarter, we grew our revenue from platform solutions by 97% year over year," commented Randy Wootton, Chief Executive Officer.
For the first-quarter, Rocket Fuel Inc. forecasts adjusted revenue to be in the range of $47 million to $52 million.
Operating cash flow improves significantly
Rocket Fuel Inc. has generated cash of $20.77 million from operating activities during the year, up 365.66 percent or $16.31 million, when compared with the last year. The company has spent $15.73 million cash to meet investing activities during the year as against cash outgo of $23.59 million in the last year.
Cash flow from financing activities was $0.89 million for the year as against cash outgo of $9.39 million in the last year period.
Cash and cash equivalents stood at $84.02 million as on Dec. 31, 2016, up 6.96 percent or $5.46 million from $78.56 million on Dec. 31, 2015.
Working capital drops significantly
Rocket Fuel Inc. has witnessed a decline in the working capital over the last year. It stood at $16.57 million as at Dec. 31, 2016, down 59.57 percent or $24.41 million from $40.98 million on Dec. 31, 2015. Current ratio was at 1.08 as on Dec. 31, 2016, down from 1.24 on Dec. 31, 2015.
Debt moves up marginally
Rocket Fuel Inc. has witnessed an increase in total debt over the last one year. It stood at $86.24 million as on Dec. 31, 2016, up 2.91 percent or $2.44 million from $83.79 million on Dec. 31, 2015. Total debt was 28.49 percent of total assets as on Dec. 31, 2016, compared with 24.14 percent on Dec. 31, 2015. Debt to equity ratio was at 0.99 as on Dec. 31, 2016, up from 0.63 as on Dec. 31, 2015.
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