XO Group Inc (XOXO) has reported 33.43 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.91 million, or $0.07 a share in the quarter, compared with $2.87 million, or $0.11 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.91 million, or $0.07 a share compared with $2.87 million or $0.11 a share, a year ago. Revenue during the quarter grew 5.83 percent to $36.73 million from $34.71 million in the previous year period. Gross margin for the quarter expanded 104 basis points over the previous year period to 95.13 percent. Total expenses were 91.74 percent of quarterly revenues, up from 86.28 percent for the same period last year. That has resulted in a contraction of 545 basis points in operating margin to 8.26 percent.
Operating income for the quarter was $3.04 million, compared with $4.76 million in the previous year period.
However, the adjusted operating income for the quarter stood at $3.04 million compared to $4.76 million in the prior year period. At the same time, adjusted operating margin contracted 545 basis points in the quarter to 8.26 percent from 13.72 percent in the last year period.
"During the quarter, we delivered strong results in our transaction revenue initiative sand launched key enhancements to our leading local marketplace for wedding professionals and couples. We also welcomed Paul Bascobert, as President of Local Marketplace. Paul has a strong track record of serving local businesses and we’re excited for him to be part of our next phase of growth,"XO Group Inc
Working capital increases
XO Group Inc has recorded an increase in the working capital over the last year. It stood at $96.20 million as at Sep. 30, 2016, up 11.45 percent or $9.88 million from $86.32 million on Sep. 30, 2015. Current ratio was at 4.22 as on Sep. 30, 2016, up from 4.20 on Sep. 30, 2015. Days sales outstanding went down to 47 days for the quarter compared with 52 days for the same period last year.
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