ChannelAdvisor Announces Third Quarter 2016 Financial Results

ChannelAdvisor Corporation (NYSE: ECOM), a leading provider of cloud-based e-commerce solutions that enable retailers and branded manufacturers to increase global sales, today announced its financial results for the quarter ended September 30, 2016.

"Our third quarter revenue was above our guidance and when combined with our strong execution resulted in positive adjusted EBITDA, which also exceeded our guidance," said David Spitz, CEO of ChannelAdvisor. "Despite foreign currency headwinds, our total revenue increased 15% and revenue from customers in the United States grew 20% from a year ago. Our strategy to attract larger customers and brands, and to deliver increasing value to help existing customers grow, contributed to these results. Our third quarter performance reinforces our confidence that we remain on the path to returning to sustainable increasing revenue growth and improving profitability in the years ahead."

Third Quarter 2016 Financial Results
  • Total revenue of $28.0 million for the third quarter of 2016 increased 15 percent compared with total revenue of $24.4 million for the third quarter of 2015.
  • GAAP net loss was $(2.6) million compared with a net loss of $(4.8) million in the third quarter of 2015. GAAP net loss per share was $(0.10), based on 25.7 million weighted average shares outstanding, compared with a net loss per share of $(0.19) in the year-ago period, based on 25.1 million weighted average shares then outstanding.
  • Non-GAAP net income (loss), which excludes the impact of non-cash stock-based compensation, was $0.3 million for the third quarter of 2016 compared with $(1.7) million for the third quarter of 2015.
  • Adjusted EBITDA, a non-GAAP measure, was $2.2 million for the third quarter of 2016 compared with $0.7 million for the third quarter of 2015. Adjusted EBITDA excludes depreciation, amortization, income tax (benefit) expense, interest and stock-based compensation expense.
  • Cash at quarter end totaled $64.7 million, compared with $62.4 million at the end of the second quarter of 2016.

Recent Business Highlights
  • Average revenue per customer, calculated on a trailing twelve-month basis, increased 17 percent to $38,400 for the twelve months ended September 30, 2016, compared with $32,748 for the twelve months ended September 30, 2015. Total customer count was 2,880 at the end of the third quarter of 2016, compared with 2,910 customers at the end of the third quarter of 2015.
  • Fixed subscription fees were 80 percent of total revenue and variable subscription fees were 20 percent of total revenue in each of the third quarters of 2016 and 2015.
  • Added new top-tier customers including Guangzhou Zewan, JVCKENWOOD USA Corporation, Lamps Plus, Microsoft Store, The Hillman Group and United Sports Brands.
  • Announced major platform enhancements including support for eBay Promoted Listings, a new Algorithmic Repricer for Amazon and Jet and an Optimization Dashboard for Amazon.
  • Named Amy Robertson vice president and chief people officer.
  • Appointed Joe Cowan to Board of Directors.
  • Recognized as a winner of the Best Places to Work Award by Triangle Business Journal.

Financial Outlook

Based on information available as of today, ChannelAdvisor is issuing the following guidance for the fourth quarter and full year of 2016:

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