New Relic, Inc (NEWR) saw its loss narrow to $14.99 million, or $0.28 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $19.19 million, or $0.39 a share. On the other hand, adjusted net loss for the quarter narrowed to $5.68 million, or $0.11 a share from a loss of $11.86 million or $0.24 a share, a year ago. Revenue during the quarter surged 39.71 percent to $73.34 million from $52.49 million in the previous year period. Gross margin for the quarter expanded 124 basis points over the previous year period to 81.01 percent. Operating margin for the quarter stood at negative 20.54 percent as compared to a negative 36.75 percent for the previous year period.
Operating loss for the quarter was $15.07 million, compared with an operating loss of $19.29 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $5.75 million compared to operating loss of $11.96 million in prior year period.
“New Relic had an incredible finish to our fiscal year, delivering more than $263M in revenue and year-over-year revenue growth of 45 percent,” said Lew Cirne, Chief executive officer and founder, New Relic. “This growth is driven by our success in the enterprise market, as nearly every forward-thinking company today is making a strategic investment in cloud and digital transformation initiatives. That is why the world's most innovative enterprises trust New Relic to help them see more clearly into their digital business.”
For the first-quarter2018, New Relic, Inc expects revenue to be in the range of $77 million to $78.50 million and its adjusted operating income to be in the range of $6.50 million to $7.50 million and adjusted diluted earnings per share to be in the range of $0.12 to $0.14
For fiscal year 2017, New Relic, Inc expects revenue to be in the range of $341.50 million to $346.50 million and its adjusted operating income to be in the range of $14 million to $18 million and adjusted diluted earnings per share to be in the range of $0.24 to $0.32
Operating cash flow improves significantly
New Relic, Inc has generated cash of $18.93 million from operating activities during the year, up 372.49 percent or $14.92 million, when compared with the last year. The company has spent $18.52 million cash to meet investing activities during the year as against cash outgo of $58.05 million in the last year.
Cash flow from financing activities was $21.98 million for the year, up 49.52 percent or $7.28 million, when compared with the last year.
Cash and cash equivalents stood at $88.30 million as on Mar. 31, 2017, up 33.97 percent or $22.39 million from $65.91 million on Mar. 31, 2016.
Working capital declines
New Relic, Inc has witnessed a decline in the working capital over the last year. It stood at $121.27 million as at Mar. 31, 2017, down 11.32 percent or $15.47 million from $136.75 million on Mar. 31, 2016. Current ratio was at 1.78 as on Mar. 31, 2017, down from 2.47 on Mar. 31, 2016.
Days sales outstanding went up to 38 days for the quarter compared with 28 days for the same period last year.
At the same time, days payable outstanding went up to 21 days for the quarter from 19 for the same period last year.
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