This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

ChannelAdvisor Announces First Quarter 2014 Financial Results

ChannelAdvisor Corporation (NYSE: ECOM), a leading provider of cloud-based e-commerce solutions that enable retailers and manufacturers to increase global sales, today announced its financial results for the quarter ended March 31, 2014.

"We are pleased to start the year with quarterly core revenue growth of 32% year-over-year, which exceeded our expectations and is the fastest organic quarterly growth rate we've experienced in the last seven years," said Scot Wingo, Chief Executive Officer of ChannelAdvisor. "The accelerating revenue growth we saw in the first quarter is evidence that our investments in sales and marketing are generating the return we expected."

First Quarter 2014 Financial Results

  • Total revenue of $19.3 million for the first quarter of 2014 increased 30 percent compared with total revenue of $14.9 million for the first quarter of 2013.
  • Core revenue increased by 32 percent to $19.0 million from $14.4 million in the first quarter of 2013. 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 $(9.4) million compared with a net loss of $(2.7) million in the first quarter of 2013. GAAP net loss per share was $(0.39), based on 24.2 million weighted average shares outstanding, compared with a net loss per share of $(2.10), based on 1.3 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 $(8.7) million compared with non-GAAP net loss of $(2.3) million for the first quarter of 2013. Non-GAAP net loss per share was $(0.36) for the first quarter of 2014, based on 24.2 million weighted average shares outstanding, compared with a non-GAAP net loss per share of $(0.16) for the first quarter of 2013, based on 14.7 million weighted average shares outstanding. Per share figures for the first quarter of 2013 assume that the company’s pre-IPO preferred stock was converted to common stock at the beginning of the quarter.
  • Adjusted EBITDA, a non-GAAP measure, was $(7.3) million for the first quarter of 2014 compared with $(0.9) million for the first quarter of 2013. Adjusted EBITDA excludes depreciation, amortization, income tax expense, interest and stock-based compensation expenses.
  • Cash at quarter end totaled $95.0 million, compared with $104.4 million at the end of 2013. The decrease was primarily due to investments in our long-term growth.

Recent Business Highlights

  • Added 136 net core customers in the first quarter. Total core customer count was 2,565 at the end of the first quarter, an increase of 28 percent from 1,997 core customers at the end of the first quarter of 2013.
  • Added new top-tier customers including Air & Water, The Clorox Company, CWI, Inc., Denby Retail, Ltd., JB Hi-Fi Limited, Kirkland's, Inc., Styletread and The Talbots, Inc.
  • Average revenue per core customer, calculated on a trailing twelve-month basis, increased 7 percent to $30,883 for the first quarter, compared with $28,730 for the first quarter of 2013.
  • Fixed subscription fees were 73 percent of total revenue and variable subscription fees were 27 percent of total revenue for the first quarter of 2014. This compares to 65 percent and 35 percent, respectively, for the first quarter of 2013.
  • Subscription dollar retention rate, the primary metric that we use to measure customer retention, exceeded 100 percent for the quarter, consistent with recent performance.
  • Hosted Catalyst Americas Conference at the Wynn Las Vegas on March 10-12.
  • Introduced ChannelAdvisor Digital Marketing, a retail-focused answer to the complicated world of online advertising.
  • Integrated with Alibaba Group's Tmall Global Solution, helping retailers and manufacturers extend their businesses across borders.

Financial Outlook

Based on information available as of today, ChannelAdvisor is issuing the following guidance for the second quarter and full year of 2014:

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs