Xactly Corporation (XTLY) saw its loss narrow to $4.06 million, or $0.13 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $5.89 million, or $0.20 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.46 million, or $0.05 a share from a loss of $4.48 million or $0.15 a share, a year ago. 

Revenue during the quarter grew 17.37 percent to $24.30 million from $20.70 million in the previous year period. Gross margin for the quarter expanded 275 basis points over the previous year period to 62.12 percent. Operating margin for the quarter stood at negative 16.17 percent as compared to a negative 27.37 percent for the previous year period.

Operating loss for the quarter was $3.93 million, compared with an operating loss of $5.67 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $0.25 million compared to negative $3.40 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 1.01 percent for the quarter compared to negative 16.43 percent in the last year period.

"Fiscal 2017 was another strong year for Xactly, and we exited the year with one of the best quarters ever," said Christopher W. Cabrera, founder and chief executive officer of Xactly Corporation. “Companies turn to Xactly for sales performance management because we have an unmatched combination of data, technology and experience. In Q4 we delivered record total revenue and gross margins and experienced an exceptional win rate. Looking forward, we believe the tremendous opportunity in the incentive compensation market, combined with our differentiated product offering and proven ability to innovate, will continue to fuel Xactly’s long term growth."

For the first-quarter, Xactly expects revenue to be in the range of $23.80 million to $24.80 million. It forecasts net loss to be in the range of $5.90 million to $4.90 million. The company forecasts diluted loss per share to be in the range of $0.19 to $0.16. It projects adjusted net loss to be in the range of $3.30 million to $2.30 million. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.10 to $0.07 for the first-quarter.

For fiscal year 2018, Xactly expects revenue to be in the range of $111 million to $115 million. It forecasts net loss to be in the range of $21.50 million to $18.90 million. It projects adjusted net loss to be in the range of $10.20 million to $7.60 million, the company projects diluted loss per share to be in the range of $0.67 to $0.59. The company projects diluted loss per share to be in the range of $0.32 to $0.24 on adjusted basis.

The company has spent $30.79 million cash to meet investing activities during the year as against cash outgo of $4.30 million in the last year.

Cash flow from financing activities was $0.81 million for the year, down 97.96 percent or $38.61 million, when compared with the last year.

Cash and cash equivalents stood at $15.01 million as on Jan. 31, 2017, down 68.75 percent or $33.02 million from $48.03 million on Jan. 31, 2016.

Working capital drops significantly
Xactly has witnessed a decline in the working capital over the last year. It stood at $0.54 million as at Jan. 31, 2017, down 94.46 percent or $9.23 million from $9.77 million on Jan. 31, 2016. Current ratio was at 1.01 as on Jan. 31, 2017, down from 1.16 on Jan. 31, 2016.

Days sales outstanding went up to 50 days for the quarter compared with 45 days for the same period last year.

At the same time, days payable outstanding went down to 5 days for the quarter from 13 for the same period last year.