Rightside Group, Ltd (NAME) saw its loss widen to $4.43 million, or $0.23 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.40 million, or $0.18 a share. Revenue during the quarter went down marginally by 1.57 percent to $53.27 million from $54.12 million in the previous year period. Gross margin for the quarter expanded 107 basis points over the previous year period to 24.24 percent. Operating margin for the quarter stood at negative 6.79 percent as compared to a negative 5.77 percent for the previous year period.
Operating loss for the quarter was $3.62 million, compared with an operating loss of $3.12 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.27 million compared with $0.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 261 basis points in the quarter to 4.27 percent from 1.66 percent in the last year period.
“In the third quarter, we executed on our strategy to deliver revenue growth in our higher margin businesses while optimizing for margin expansion across all areas of our business,” said Chief Executive Officer Taryn Naidu. “Our registry services business continues to be core to the Company’s strategy and its revenue grew 26% year over year driven by strong premium names sales and Name.com, our flagship retail registrar grew 14% year over year. This quarter, we also reported Adjusted EBITDA of $2.3 million, over two times higher than the prior year period as we’ve continued to drive cost efficiencies throughout the business and capitalize on the opportunity provided by new gTLDs.”
Rightside Group, Ltd projects revenue to be in the range of $218 million to $228 million for financial year 2016.
Working capital turns positive
Working capital of Rightside Group, Ltd has turned positive to $10.54 million on Sep. 30, 2016 from negative $19.40 million on Sep. 30, 2015. Current ratio was at 1.08 as on Sep. 30, 2016, up from 0.88 on Sep. 30, 2015. Days sales outstanding were almost stable at 20 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 18 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Rightside Group, Ltd has recorded a decline in total debt over the last one year. It stood at $24.52 million as on Sep. 30, 2016, down 1.40 percent or $0.35 million from $24.86 million on Sep. 30, 2015. Total debt was 7.55 percent of total assets as on Sep. 30, 2016, compared with 7.06 percent on Sep. 30, 2015. Debt to equity ratio was at 0.18 as on Sep. 30, 2016, up from 0.17 as on Sep. 30, 2015. 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
