On Deck Capital Inc (ONDK) saw its loss narrow to $11.06 million, or $0.15 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $12.57 million, or $0.18 a share. On the other hand, adjusted net loss for the quarter narrowed to $7.57 million, or $0.11 a share from a loss of $8.82 million or $0.13 a share, a year ago. Revenue during the quarter surged 48.35 percent to $92.89 million from $62.62 million in the previous year period. Gross margin for the quarter contracted 1209 basis points over the previous year period to 38.15 percent. Operating margin for the quarter stood at negative 12.11 percent as compared to a negative 20.93 percent for the previous year period.
Operating loss for the quarter was $11.25 million, compared with an operating loss of $13.10 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $5.16 million compared to negative $7.27 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 5.56 percent for the quarter compared to negative 11.62 percent in the last year period.
"Our first quarter 2017 results and our continuing initiatives to reduce costs demonstrate the progress we are making toward achieving our financial performance objectives,” said Noah Breslow, OnDecks chief executive officer. "During the quarter, we continued to focus on tightening our credit management and improving the operating leverage inherent in our technology-enabled model. Our credit policy adjustments have begun to yield benefits, as demonstrated by the sequential improvement in our Provision Rate and our improving outlook for this metric for the remaining three quarters of 2017. Additionally, we are encouraged that roll rates for 2016 loans stabilized during the quarter, and that performance of loans with maturities of 15 months or longer is in line with the recalibrated expectations we set last quarter."
For the second-quarter, On Deck Capital Inc forecasts revenue to be in the range of $85 million to $89 million. On Deck Capital Inc forecasts revenue to be in the range of $342 million to $352 million for fiscal year 2017.
Working capital drops significantly
On Deck Capital Inc has witnessed a decline in the working capital over the last year. It stood at $131.02 million as at Mar. 31, 2017, down 82.10 percent or $601.04 million from $732.06 million on Mar. 31, 2016. Current ratio was at 20.70 as on Mar. 31, 2017, down from 114.18 on Mar. 31, 2016. Days sales outstanding went down to 242 days for the quarter compared with 800 days for the same period last year.
At the same time, days payable outstanding went down to 5 days for the quarter from 12 for the same period last year.
Debt increases substantially
On Deck Capital Inc has witnessed an increase in total debt over the last one year. It stood at $816.01 million as on Mar. 31, 2017, up 74.24 percent or $347.68 million from $468.32 million on Mar. 31, 2016. Long-term debt stood at $816.01 million as on Mar. 31, 2017. Total debt was 73.26 percent of total assets as on Mar. 31, 2017, compared with 56.50 percent on Mar. 31, 2016. Debt to equity ratio was at 3.13 as on Mar. 31, 2017, up from 1.45 as on Mar. 31, 2016. 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: [email protected]
