Revenue for ChannelAdvisor Corp. increased 15.2% to $28.0 million in the third quarter ended Sept. 30, up from $24.3 million in the same quarter a year ago. Without the impact of currency fluctuations, revenue would have increased 18%, executives said on a call discussing Q3 earnings with analysts.
ChannelAdvisor, which built its business on providing services to small and midsized online retailers, continues to shift its focus to acquiring larger retailers and brands as customers. As of the end of the quarter, ChannelAdvisor has 2,880 customers compared with 2,910 in Q3 2015. The impact of having fewer customers than a year ago was offset by an increase in average revenue per customer. Average revenue per customer increased 17.3% to $38,400 for the 12 months ended Sept. 30, compared with $32,748 a year earlier. New customers added in the third quarter include Microsoft Corp., No. 88 in the Internet Retailer 2016 Top 500 Guide, Lamps Plus Inc. (No. 172) and United Sports Brands.
“Our focus on larger retailers and brands is evident and the continued growth of customers with an annual commitment of $15,000 or more, including over 40% growth in the number of customers committed to $100,000 per year or more,” CEO David Spitz said on a call discussing the results, according to a SeekingAlpha transcript.
ChannelAdvisor helps retailers sell on online marketplaces like those operated by Amazon.com Inc. (No. 1) and eBay Inc., and it facilitates sales through comparison shopping sites and search marketing. 140 retailers in the Internet Retailer 2016 Top 1000 use ChannelAdvisor to manage their marketplace sales, and 129 retailers use the vendor to handle comparison shopping engine feeds.
During the quarter, ChannelAdvisor added technology to support marketplaces including Amazon India and Lovato, a marketplace in Southeast Asia. Additionally, it launched new algorithmic software for repricing products on online marketplaces Jet.com and Amazon. “Early results from this new repricer, which continuously balances profitability and sales velocity, has been extremely impressive with early customers experiencing double-digit comparable sales growth, or simultaneously expanding profit margins,” Spitz said on the call.
For the third quarter ended Sept. 30, ChannelAdvisor also reported:
- A net loss of $2.6 million compared with a $4.8 million loss a year ago.
For the first nine months of the year, ChannelAdvisor reported:
- Revenue of $81.4 million, up 14.3% from $71.2 million.
- Net loss of $13.8 million compared with a $20.3 million loss a year ago.