The provider of online marketing, e-commerce and fulfillment technology and services says its B2B client activity is expanding client demand throughout the year.

PFSweb Inc.’s revenue inched up in the second quarter by just over 1% and the company posted a net loss of more than $2 million. But it’s looking ahead to a strong second half, thanks to increasing demand from business-to-business clients, CEO Mike Willoughby says.

B2B opportunities continue to sort of defy any kind of seasonality patterns.
Mike Willoughby, CEO
PFSweb Inc.

“B2B opportunities continue to sort of defy any kind of seasonality patterns,” Willoughby said on a second quarter conference call with stock analysts this week, according to a transcript from Seeking Alpha. Noting that PFSweb was near the end of its peak season in early August for project activity with client retailers, he added that B2B client activity was expected to continue strong through the second half, as it did last year. “B2B projects do not typically have a predictable seasonality associated with them,” he said. “However, we are seeing a strong trend within our current pipeline that would lead us to believe this segment can be stronger in Q3 and Q4 this year, as was the case last year.”

Willoughby said PFSweb was experiencing strong demand among clients for work on IBM Corp.’s WebSphere Commerce and SAP SE’s SAP Hybris e-commerce technology platforms. In particular, he noted that PFSweb recently signed a $1.2 million contract with a veterinarian products client to implement a SAP Hybris platform.

PFSweb also reported “a very strong quarter of activity on the Salesforce commerce platform,” Willoughby said. Much of that activity is with retail brands that operate websites using Salesforce Commerce Cloud technology, which is the former Demandware platform that Salesforce.com Inc. acquired last year.

PFSweb’s clients include consumer products manufacturer Procter & Gamble; apparel companies Roots Canada Ltd., Canada Goose; retail chains David’s Bridal, T.J. Maxx and Charlotte Russe; and the United States Mint.

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For the second quarter ended June 30, PFSweb reported:

  • Total revenue of $78.1 million, up 1.1% from $77.2 million a year earlier;
  • Gross profit of $19.165 million, up 10.0% from $17.423 million;
  • A net loss of $2.6 million, compared to a net loss of $2.2 million; the Q2 net loss includes a $1.1 million expense related to compensation for additional business stemming from its 2015 acquisition of CrossView, a systems integrator that PFSweb bought to help in the implementation of IBM WebSphere Commerce and SAP Hybris e-commerce technology platforms. PFSweb said most of the new CrossView business is related to implementations of SAP Hybris technology.

For the six months ended June 30, PFSweb reported:

  • Total revenue of $156.834 million, up 3.0% from $152.280 million;
  • Gross profit of $37.439 million, up 6.4% from $35.172 million;
  • A net loss of $7.452 million, compared to a net loss of $2.934 million. Much of the widened loss was related to depreciation and amortization costs.

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