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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 June 30, 2014.
"We are pleased to deliver second quarter revenue which was above expectations, with core revenue growth of 32 percent over the second quarter of the prior year," said Scot Wingo, Chief Executive Officer of ChannelAdvisor. “During the quarter we signed many large customers, including 16 of the largest U.S. internet retailers. The excellent sales momentum generated in the quarter is reflected in our increased full year revenue guidance."
Second Quarter 2014 Financial Results
Total revenue of $20.8 million for the second quarter of 2014 increased 30.0 percent compared with total revenue of $16.0 million for the second quarter of 2013.
Core revenue increased by 31.8 percent to $20.5 million from $15.5 million in the second 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 $(9.6) million compared with a net loss of $(5.0) million in the second quarter of 2013. GAAP net loss per share was $(0.39), based on 24.6 million weighted average shares outstanding, compared with a net loss per share of $(0.56), based on 8.8 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 $(7.5) million compared with non-GAAP net loss of $(4.5) million for the second quarter of 2013. Non-GAAP net loss per share was $(0.30) for the second quarter of 2014, based on 24.6 million weighted average shares outstanding, compared with a non-GAAP net loss per share of $(0.25) for the second quarter of 2013, based on 17.5 million weighted average shares outstanding. Per share figures for the second 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 $(6.1) million for the second quarter of 2014 compared with $(2.0) million for the second quarter of 2013. Adjusted EBITDA excludes depreciation, amortization, income tax expense, interest and stock-based compensation expenses.
Cash at quarter end totaled $85.1 million, compared with $95.0 million at the end of the first quarter. The decrease was primarily due to investments in our long-term growth.
Recent Business Highlights
Added 108 net core customers in the second quarter. Total core customer count was 2,673 at the end of the second quarter, an increase of 25 percent from 2,135 core customers at the end of the second quarter of 2013.
Added new top-tier customers including Atman, Inc. dba pcRUSH.com, babyhaven.com, Capital Ford, Inc., CPO Commerce, Cymax, Dazadi, Elaine Turner, Ice.com and SmartWool, a division of VF Outdoor, Inc.
Average revenue per core customer, calculated on a trailing twelve-month basis, increased 5 percent to $31,160 for the second quarter, compared with $29,607 for the second quarter of 2013.
Fixed subscription fees were 76 percent of total revenue and variable subscription fees were 24 percent of total revenue for the second quarter of 2014. This compares to 67 percent and 33 percent, respectively, for the second 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.
Announced support for Google's Shopping campaigns, with Product Group Generator, enabling retailers to efficiently configure Google Product Listing Ad campaigns.
Integrated ChannelAdvisor Digital Marketing with Yahoo Gemini, offering advertisers the ability to create and manage ads on Yahoo’s unified marketplace for mobile search and native ad campaigns.
Presented at three industry conferences: SuiteWorld 2014, IRCE Focus: Brands & B2B and Internet Retailer Conference & Exhibition 2014.
Based on information available as of today, ChannelAdvisor is issuing the following guidance for the third quarter and full year of 2014: