Envestnet Inc. (ENV) saw its loss widen to $13.14 million, or $0.30 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.99 million, or $0.26 a share. On the other hand, adjusted net income for the quarter stood at $11.52 million, or $0.25 a share compared with $7.78 million or $0.18 a share, a year ago. Revenue during the quarter grew 19.70 percent to $157.79 million from $131.82 million in the previous year period. Gross margin for the quarter contracted 73 basis points over the previous year period to 68.80 percent. Operating margin for the quarter stood at negative 2.13 percent as compared to a negative 9.68 percent for the previous year period.
Operating loss for the quarter was $3.35 million, compared with an operating loss of $12.76 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $25.84 million compared with $19.19 million in the prior year period. At the same time, adjusted EBITDA margin improved 182 basis points in the quarter to 16.38 percent from 14.56 percent in the last year period.
"Envestnet is off to a solid start in 2017," said Jud Bergman, chairman and chief executive officer. "We are focused on growing our business organically and gaining adoption of our unified wealth management technology, our fiduciary services, and our data aggregation and analytics offerings."
For financial year 2017, Envestnet Inc. projects revenue to be in the range of $654 million to $663 million. It projects adjusted revenue to be in the range of $655 million to $664 million for the same period.
For the second-quarter, Envestnet Inc. projects revenue to be in the range of $162.80 million to $164.80 million. It projects adjusted revenue to be in the range of $163 million to $165 million. It expects diluted earnings per share to be $0.27 on an adjusted basis for the same period.
Operating cash flow drops significantly
Envestnet Inc. has generated cash of $9 million from operating activities during the quarter, down 33.40 percent or $ 4.52 million, when compared with the last year period. The company has spent $6.10 million cash to meet investing activities during the quarter as against cash outgo of $22.82 million in the last year period.
The company has spent $16.34 million cash to carry out financing activities during the quarter as against cash outgo of $5.86 million in the last year period.
Cash and cash equivalents stood at $39.48 million as on Mar. 31, 2017, up 8.01 percent or $2.93 million from $36.55 million on Mar. 31, 2016.
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