Meet Group (QPSA) has reported 81.07 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.45 million, or $0.01 a share in the quarter, compared with $2.35 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.31 million, or $0.07 a share compared with $3.56 million or $0.07 a share, a year ago.
Revenue during the quarter surged 50.57 percent to $20.06 million from $13.32 million in the previous year period. Total expenses were 97.77 percent of quarterly revenues, up from 83.54 percent for the same period last year. That has resulted in a contraction of 1423 basis points in operating margin to 2.23 percent.
Operating income for the quarter was $0.45 million, compared with $2.19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.77 million compared with $3.68 million in the prior year period. At the same time, adjusted EBITDA margin contracted 382 basis points in the quarter to 23.78 percent from 27.60 percent in the last year period.
"In the first quarter, we continued to effectively execute our strategy to innovate, acquire, and build the largest mobile portfolio for meeting new people," said Geoff Cook, chief executive officer of The Meet Group. "On April 3, we successfully closed on the acquisition of if we, a social and mobile technology company based in San Francisco with two leading mobile brands for meeting and chatting with new people: Tagged and Hi5. While only one month into the integration, we have already consolidated the Skout team into the if we office, putting all our West Coast employees under one roof. The if we team today is primarily focused on two key priorities: advertising monetization and video. I expect great things from the West Coast team and rapid progress toward increasing Tagged ARPU and launching live-streaming video."
Working capital increases sharplyMeet Group has recorded an increase in the working capital over the last year. It stood at $80 million as at Mar. 31, 2017, up 141.93 percent or $46.93 million from $33.07 million on Mar. 31, 2016. Current ratio was at 7.81 as on Mar. 31, 2017, up from 7.80 on Mar. 31, 2016. Days sales outstanding went down to 73 days for the quarter compared with 93 days for the same period last year.
Debt comes down significantlyMeet Group has recorded a decline in total debt over the last one year. It stood at $0.15 million as on Mar. 31, 2017, down 68.16 percent or $0.32 million from $0.48 million on Mar. 31, 2016. Total debt was 0.06 percent of total assets as on Mar. 31, 2017, compared with 0.42 percent on Mar. 31, 2016. Interest coverage ratio deteriorated to 192.15 for the quarter from 325.09 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
