Rubicon Project (RUBI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $21.19 million, or $ 0.44 a share in the quarter, against a net profit of $20.40 million, or $0.43 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $18.14 million, or $0.37 a share compared with $34.96 million or $0.74 a share, a year ago. Revenue during the quarter dropped 22.70 percent to $72.67 million from $94.01 million in the previous year period. Gross margin for the quarter contracted 634 basis points over the previous year period to 70.93 percent. Operating margin for the quarter stood at negative 30.23 percent as compared to a positive 19.35 percent for the previous year period.
Operating loss for the quarter was $21.97 million, compared with an operating income of $18.19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.72 million compared with $36.03 million in the prior year period. At the same time, adjusted EBITDA margin contracted 844 basis points in the quarter to 29.89 percent from 38.33 percent in the last year period.
"We executed well against our revised outlook for the fourth quarter, posted solid 2016 financial results, and made significant progress with products and customers during the year, despite the many challenges we faced," said Frank Addante, Founder and Chairman of Rubicon Project. "We made advancements in our strategic growth areas, including mobile, video and orders, while continuing to see promising results from FastLane, our solution for header bidding. Through restructuring and divestiture during the year, we strengthened our business and refocused our energies, resources and investments on what has made Rubicon Project successful for nearly a decade: our global ad exchange business. As we move into 2017, we remain focused on signing up more publishers, application developers, and adding inventory to our global exchange, a key component to drive future growth."
For the first-quarter, Rubicon Proj Inc forecasts revenue to be in the range of $41 million to $45 million. The company forecasts adjusted revenue to be in the range of $41 million to $44 million. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.26 to $0.22.
Operating cash flow declines
Rubicon Project has generated cash of $60.12 million from operating activities during the year, down 21.78 percent or $16.74 million, when compared with the last year. The company has spent $37.12 million cash to meet investing activities during the year as against cash outgo of $72.86 million in the last year.
Cash flow from financing activities was $10.08 million for the year, down 34.85 percent or $5.39 million, when compared with the last year.
Cash and cash equivalents stood at $149.42 million as on Dec. 31, 2016, up 28.26 percent or $32.92 million from $116.50 million on Dec. 31, 2015.
Working capital increases sharply
Rubicon Project has recorded an increase in the working capital over the last year. It stood at $173.14 million as at Dec. 31, 2016, up 49.85 percent or $57.60 million from $115.54 million on Dec. 31, 2015. Current ratio was at 1.79 as on Dec. 31, 2016, up from 1.46 on Dec. 31, 2015.
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