MINDBODY, Inc. (MB) saw its loss narrow to $3.94 million, or $0.10 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $9.75 million, or $0.25 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.62 million, or $0.04 a share from a loss of $6.55 million or $0.17 a share, a year ago.
Revenue during the quarter surged 35.12 percent to $38.19 million from $28.26 million in the previous year period. Gross margin for the quarter expanded 579 basis points over the previous year period to 70.09 percent. Operating margin for the quarter stood at negative 9.59 percent as compared to a negative 32.98 percent for the previous year period.
Operating loss for the quarter was $3.66 million, compared with an operating loss of $9.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.58 million compared to negative $4.34 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 1.51 percent for the quarter compared to negative 15.35 percent in the last year period.
"2016 was a great year for MINDBODY, with strong growth in high value subscribers, particularly in our fitness and salon/spa markets, impressive expansion of the MINDBODY Network marketing platform and an 82% increase in MINDBODY app registered users," said Rick Stollmeyer, Co-founder and chief executive officer of MINDBODY. "These successes combined with increasingly powerful partnerships and improving margins give us a great deal of confidence and excitement for the year ahead."
For the fiscal year 2017, MINDBODY, Inc. expects revenue to be in the range of $179 million to $182 million. The company projects adjusted net loss to be in the range of $2.70 million to $5.70 million.
For the first-quarter 2017, MINDBODY, Inc. expects revenue to be in the range of $41.60 million to $42.60 million. The company projects adjusted net loss to be in the range of $1.10 million to $2.10 million.
Operating cash flow remains negative
MINDBODY, Inc. has spent $3.90 million cash to meet operating activities during the year as against cash outgo of $18.57 million in the last year.
The company has spent $12.73 million cash to meet investing activities during the year as against cash outgo of $12.13 million in the last year.
Cash flow from financing activities was $9.17 million for the year, down 89.76 percent or $80.35 million, when compared with the last year.
Cash and cash equivalents stood at $85.86 million as on Dec. 31, 2016, down 8.07 percent or $7.54 million from $93.40 million on Dec. 31, 2015.
Working capital declines
MINDBODY, Inc. has witnessed a decline in the working capital over the last year. It stood at $77.96 million as at Dec. 31, 2016, down 10.17 percent or $8.82 million from $86.78 million on Dec. 31, 2015. Current ratio was at 4.76 as on Dec. 31, 2016, down from 6.31 on Dec. 31, 2015.
Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 19 days for the quarter, when compared with the previous year period.
Debt comes down marginally
MINDBODY, Inc. has recorded a decline in total debt over the last one year. It stood at $15.45 million as on Dec. 31, 2016, down 3.20 percent or $0.51 million from $15.96 million on Dec. 31, 2015. MINDBODY has recorded a decline in long-term debt over the last one year. It stood at $15.45 million as on Dec. 31, 2016, down 3.20 percent or $0.51 million from $15.96 million on Dec. 31, 2015. Total debt was 10.77 percent of total assets as on Dec. 31, 2016, compared with 11.29 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.15 as on Dec. 31, 2016, when compared with the last year.
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