Revenue during the quarter dropped 3.09 percent to $194.54 million from $200.74 million in the previous year period. Gross margin for the quarter contracted 291 basis points over the previous year period to 49.29 percent. Total expenses were 99.17 percent of quarterly revenues, up from 89.64 percent for the same period last year. That has resulted in a contraction of 953 basis points in operating margin to 0.83 percent.

Operating income for the quarter was $1.62 million, compared with $20.80 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $45.02 million compared with $45.89 million in the prior year period. At the same time, adjusted EBITDA margin improved 28 basis points in the quarter to 23.14 percent from 22.86 percent in the last year period.

"We delivered solid overall performance to start the year, with first quarter adjusted revenue and adjusted EBITDA both above our guidance ranges," said Robert Musslewhite, chairman and chief executive officer of The Advisory Board Company. “These results reflect our strong competitive position in two high-demand target markets, Health Care and Education, as well as the efforts of our passionate, committed team who leverage our distinct capabilities to help our members address complex market challenges. I am confident that our unique best practice-based portfolio, deep insight, and exceptional member relationships set us up well to continue to have tremendous impact in these important markets, both now and into the future."

For financial year 2017, The Advisory Board Company projects adjusted revenue to be in the range of $780 million to $840 million. The company forecasts diluted earnings per share to be in the range of $1.80 to $2.10 on adjusted basis.

For the second-quarter 2017, The Advisory Board Company projects adjusted revenue to be in the range of $192 million to $197 million.

Operating cash flow improves
The Advisory Board Company has generated cash of $28.67 million from operating activities during the quarter, up 5.38 percent or $1.46 million, when compared with the last year period.

Cash flow from investing activities was $32.66 million for the quarter as against cash outgo of $12.37 million in the last year period.

The company has spent $2.40 million cash to carry out financing activities during the quarter as against cash outgo of $34.22 million in the last year period.

Cash and cash equivalents stood at $150.08 million as on Mar. 31, 2017, up 186.21 percent or $97.64 million from $52.44 million on Mar. 31, 2016.

Working capital turns positive
Working capital ofThe Advisory Board Company has turned positive to $30.28 million on Mar. 31, 2017 from negative $49.85 million on Mar. 31, 2016. Current ratio was at 1.04 as on Mar. 31, 2017, up from 0.93 on Mar. 31, 2016.

Days sales outstanding went up to 267 days for the quarter compared with 263 days for the same period last year.