HubSpot, Inc. (HUBS) saw its loss widen to $13.83 million, or $0.39 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $10.25 million, or $0.30 a share. On the other hand, adjusted net loss for the quarter widened to $4.54 million, or $0.13 a share from a loss of $4.21 million or $0.12 a share, a year ago.
Revenue during the quarter surged 43.89 percent to $76.44 million from $53.13 million in the previous year period. Gross margin for the quarter expanded 371 basis points over the previous year period to 77.91 percent. Operating margin for the quarter stood at negative 18.08 percent as compared to a negative 19.67 percent for the previous year period.
Operating loss for the quarter was $13.82 million, compared with an operating loss of $10.45 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $4.53 million compared to operating loss of $4.41 million in prior year period.
"2016 was an exciting year for HubSpot. We expanded our global footprint, added a record number of new customers and made significant strides in our goal to become non-GAAP operating income positive by year-end 2017. But even more importantly, we took steps towards evolving HubSpot from a single product company to a multi-product company with the goal of becoming the mid-market platform for growth" said Brian Halligan, HubSpot co-founder and chief executive officer. "As we head into 2017, I think the bold bets we’re making in delivering on that goal through our full growth stack will set us up for success into the future."
For the first-quarter 2017, HubSpot, Inc. forecasts revenue to be in the range of $78.50 million to $79.50 million. The company forecasts adjusted operating loss to be in the range of $3.50 million to $2.50 million. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.10 to $0.08.
For financial year 2017, HubSpot, Inc. forecasts revenue to be in the range of $349 million to $353 million. The company forecasts adjusted operating loss to be in the range of $11.50 million to $7.50 million. The company expects diluted loss per share to be in the range of $0.30 to $0.22 on adjusted basis.
Operating cash flow turns positive
HubSpot, Inc. has generated cash of $19.37 million from operating activities during the year as against cash outgo of $0.42 million in the last year.
The company has spent $22.96 million cash to meet investing activities during the year as against cash outgo of $104.10 million in the last year.
Cash flow from financing activities was $8.47 million for the year, down 77.06 percent or $28.47 million, when compared with the last year.
Cash and cash equivalents stood at $59.70 million as on Dec. 31, 2016, up 7.42 percent or $4.12 million from $55.58 million on Dec. 31, 2015.
Working capital declines
HubSpot, Inc. has witnessed a decline in the working capital over the last year. It stood at $48.87 million as at Dec. 31, 2016, down 10.24 percent or $5.58 million from $54.45 million on Dec. 31, 2015. Current ratio was at 1.38 as on Dec. 31, 2016, down from 1.60 on Dec. 31, 2015.
Days sales outstanding went up to 23 days for the quarter compared with 22 days for the same period last year.
At the same time, days payable outstanding went up to 12 days for the quarter from 9 for the same period last year.
Debt increases substantially
HubSpot, Inc. has witnessed an increase in total debt over the last one year. It stood at $1.07 million as on Dec. 31, 2016, up 30.77 percent or $0.25 million from $0.82 million on Dec. 31, 2015. Total debt was 0.41 percent of total assets as on Dec. 31, 2016, compared with 0.37 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year.
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