GoDaddy Inc. (GDDY) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.60 million, or $ 0.01 a share in the quarter, against a net loss of $10.50 million, or $0.15 a share in the last year period.

Revenue during the quarter grew 12.91 percent to $489.70 million from $433.70 million in the previous year period. Gross margin for the quarter contracted 50 basis points over the previous year period to 63.90 percent. Total expenses were 98.84 percent of quarterly revenues, down from 99.70 percent for the same period last year. This has led to an improvement of 86 basis points in operating margin to 1.16 percent.

Operating income for the quarter was $5.70 million, compared with $1.30 million in the previous year period.

"GoDaddy delivered another very good quarter, with strong customer growth, revenue growth and great cash flow," said GoDaddy chief executive officer Blake Irving. "We are off to a strong start in 2017 with the delivery of GoCentral, our new mobile-optimized website builder, and the acquisition of Host Europe Group, which significantly expands our presence internationally. We continue to see tremendous opportunity for solid growth over the long-term, as we expand both our product offerings and the markets we serve."

For the second-quarter, GoDaddy projects revenue to be in the range of $548 million to $553 million.

For financial year 2017, GoDaddy projects revenue to be in the range of $2,195 million to $2,225 million.

Operating cash flow improves
GoDaddy Inc. has generated cash of $126.60 million from operating activities during the quarter, up 20.23 percent or $21.30 million, when compared with the last year period.

The company has spent $29.60 million cash to meet investing activities during the quarter as against cash outgo of $15.90 million in the last year period.

The company has spent $4.90 million cash to carry out financing activities during the quarter as against cash outgo of $5.70 million in the last year period.

Cash and cash equivalents stood at $658.20 million as on Mar. 31, 2017, up 52.47 percent or $226.50 million from $431.70 million on Mar. 31, 2016.

Working capital remains negative
Working capital of GoDaddy Inc. was negative $276.80 million on Mar. 31, 2017 compared with negative $383 million on Mar. 31, 2016. Current ratio was at 0.79 as on Mar. 31, 2017, up from 0.68 on Mar. 31, 2016.

Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.

At the same time, days payable outstanding went down to 28 days for the quarter from 30 for the same period last year.