ChannelAdvisor Corporation (NYSE: ECOM), a leading provider of cloud-based solutions that enable online retailers to automate, optimize and expand their merchandise sales across hundreds of online channels, today announced its financial results for the quarter ended June 30, 2013.
“We delivered a strong second quarter that was highlighted by revenue that grew at approximately twice the rate of e-commerce growth,” said Scot Wingo, Chief Executive Officer of ChannelAdvisor. “We added a record number of new customers during the second quarter and are seeing increasing demand from online retailers for solutions that help manage the growing complexity of a highly fragmented e-commerce landscape. Our highly differentiated cloud-based platform and industry leading domain expertise around e-commerce channels are driving market share gains, and we believe ChannelAdvisor is well positioned to capitalize on the multi-billion dollar market opportunity that is very much in front of us.”
Second Quarter 2013 Financial Results
Additional Second Quarter 2013 Business Highlights
- Total revenue of $16.0 million for the second quarter of 2013 increased 29 percent compared with revenue of $12.4 million in the second quarter of 2012.
- Core revenue increased by 31 percent to $15.5 million from $11.8 million in the second quarter of 2012. The company’s method for calculating this and other key operating metrics that it reports is included later in this press release.
- GAAP net loss was $(5.0) million compared with $(2.8) million in the second quarter of 2012. Basic and diluted net loss per share was $(0.56), based on 8.8 million weighted average shares outstanding, compared with a basic and diluted net loss per share of $(2.39), based on 1.2 million weighted average shares outstanding in the year-ago period.
- Non-GAAP net loss, which excludes the impact of non-cash stock-based compensation, was $(4.5) million compared with $(2.5) million for the second quarter of 2012. Non-GAAP net loss per share was $(0.25), based on 17.5 weighted average shares outstanding, compared with $(0.17), based on 14.5 million weighted average shares outstanding, for the second quarter of 2012. Per share figures assume that the company’s preferred stock was converted to common stock at the beginning of the quarter.
- Adjusted EBITDA was $(2.0) million in the second quarter compared with $(1.3) million for the second quarter of 2012.
- Cash at quarter end totaled $94.0 million, an increase compared with $11.0 million at the end of the first quarter, primarily due to $82.0 million in net proceeds, after underwriting discounts and IPO-related expenses, generated from the completion of the company’s initial public offering during the second quarter.
- Added a record 138 net new core customers in the second quarter. Total core customer count was 2,135 at the end of the second quarter, an increase of 17 percent from 1,830 core customers at the end of the second quarter of 2012.
- Average revenue per core customer, calculated on a trailing twelve-month basis as of the end of the second quarter, increased 13 percent to $29,607 compared with $26,151 for the second quarter of 2012.
- Fixed subscription fees were 67 percent of total revenue and variable subscription fees were 33 percent of total revenue. This compares to 62 percent and 38 percent, respectively, in the second quarter of 2012.
- Subscription dollar retention rate exceeded 100 percent for the quarter, consistent with recent performance.
- Introduced significant new functionality in the Spring 2013 release including new search features, multi-channel fulfillment by Amazon, enhanced eBay inventory support for international sales, support for Amazon B2B categories, and several new channel integrations.
- The company hosted two successful conferences, Catalyst Americas and Catalyst Europe, which drew more than 1,500 attendees combined and included speakers from Amazon, eBay, Facebook, Google and Forrester.
- The ChannelAdvisor platform was integrated with several new marketplace channels including Amazon Italy, Amazon Spain, La Redoute (France) and Rakuten Play.com (UK).
“Strong recurring revenue from existing customers, record quarterly net customer additions and the launch of several new marketplaces all contributed to our solid results for the second quarter,” remarked David Spitz, President and Chief Operating Officer of ChannelAdvisor. “With the completion of our initial public offering, we expect to benefit from increased market awareness and have significantly expanded our resources to invest in growth initiatives, including the continued expansion of our global sales organization. We are optimistic about our growth outlook for the full year 2013, which is reflected in our guidance that calls for higher growth compared to 2012.”