Expects Revenue and Adjusted EBITDA to Exceed
Prior GuidanceFull First Quarter 2018 Financial Results to be
Announced on May 10, 2018
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 preliminary
estimated financial results for the first quarter of 2018.
Based on information available as of today, total revenue is
expected to be approximately $31.2 million, or $1.4 million above
the high end of the previous guidance range of $29.4 million to
$29.8 million. Adjusted EBITDA, a non-GAAP measure, is expected to
be approximately $0.8 million, or $1.1 million above the high end
of the previous guidance range of a loss of $(0.7) million to
$(0.3) million. ChannelAdvisor's adjusted EBITDA estimate includes
an expected net loss of $(3.4) million adjusted for interest income
of $(0.1) million, as well as depreciation and amortization
expenses of $1.5 million, income tax expense of $0.1 million and
stock-based compensation expense of $2.7 million. These results are
preliminary and unaudited and are subject to change based on the
completion of the company's normal quarter-end review process. As a
result, these preliminary results may be different from the actual
results that will be reflected in ChannelAdvisor's consolidated
financial statements for the quarter ended March 31, 2018 when they
are released.
"Our preliminary analysis of our first quarter performance
indicates that revenue and adjusted EBITDA will be above our
previous guidance for the first quarter, reflecting solid execution
against our plan," said David Spitz, CEO of ChannelAdvisor. "These
anticipated results reflect our continued emphasis on driving
revenue growth while improving the efficiency of our business. We
look forward to providing final results and additional color on May
10."
ChannelAdvisor will release its full first quarter 2018
financial results for the quarter ended March 31, 2018 before 8:00
a.m. ET on Thursday, May 10, 2018. On that day, management will
hold a conference call and webcast at 8:00 a.m. ET to review and
discuss the Company’s results for the first quarter. A recorded
version of this webcast will be available after the call and
accessible at http://ir.channeladvisor.com.
First Quarter Earnings Conference Call
What: |
ChannelAdvisor First
Quarter 2018 Financial Results Conference Call |
When: |
Thursday, May 10,
2018 |
Time: |
8:00 a.m. ET |
Live Call: |
(855) 638-4821,
Passcode 1498797, Domestic |
|
(704) 288-0612,
Passcode 1498797, International |
Webcast: |
http://ir.channeladvisor.com (live and replay) |
Analyst and Investor Meeting Webcast
As previously announced, ChannelAdvisor will be webcasting its
Analyst and Investor Meeting being held in conjunction with the
ChannelAdvisor Catalyst Americas 2018 e-commerce conference.
The ChannelAdvisor management team is scheduled to present
today, April 19, 2018, from 10:00 a.m. to approximately 2:00 p.m.
PT (1:00 p.m. to 5:00 p.m. ET). A live webcast, as well as the
replay, will be available under the "Events & Presentations"
page on the Company’s investor relations website at
ir.channeladvisor.com.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial
measure: adjusted EBITDA.
ChannelAdvisor believes that non-GAAP measures of financial
results provide useful information to management and investors
relating to ChannelAdvisor's financial condition and results of
operations. The company’s management uses non-GAAP measures to
compare the company’s performance to that of prior periods for
trend analyses, and for budgeting and planning purposes. The
company believes that the use of non-GAAP financial measures
provides an additional tool for investors to use in evaluating
ongoing operating results and trends and in comparing the company’s
financial measures with other software companies, many of which
present similar non-GAAP financial measures to investors, and that
it allows for greater transparency with respect to key metrics used
by management in its financial and operational decision-making.
Management of the company does not consider non-GAAP measures in
isolation or as an alternative to financial measures determined in
accordance with GAAP. The principal limitation of non-GAAP
financial measures is that they exclude significant expenses that
are required by GAAP to be recorded in the company’s financial
statements. In order to compensate for these limitations,
management presents non-GAAP financial measures together with GAAP
results. Non-GAAP measures should be considered in addition to
results and guidance prepared in accordance with GAAP, but should
not be considered a substitute for, or superior to, GAAP results.
Reconciliation tables of the most comparable GAAP financial
measures to the non-GAAP financial measures used in this press
release are included with the financial tables at the end of this
release. ChannelAdvisor urges investors to review the
reconciliation and not to rely on any single financial measure to
evaluate the company’s business. In addition, other companies,
including companies in our industry, may calculate similarly named
non-GAAP measures differently than we do, which limits their
usefulness in comparing our financial results with theirs.
About ChannelAdvisor
ChannelAdvisor (NYSE:ECOM) is a leading e-commerce cloud
platform whose mission is to connect and optimize the world’s
commerce. For nearly two decades, ChannelAdvisor has helped
retailers and branded manufacturers worldwide improve their online
performance by expanding sales channels, connecting with consumers
around the world, optimizing their operations for peak performance
and providing actionable analytics to improve competitiveness.
Thousands of customers depend on ChannelAdvisor to securely power
their sales and optimize fulfillment on channels such as Amazon,
eBay, Google, Facebook, Walmart and hundreds more. For more
information, visit www.channeladvisor.com.
Cautionary Language Concerning Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to, statements regarding our expected financial results for the
first quarter of 2018. These forward-looking statements are made as
of the date of this release and are based on current expectations,
estimates, forecasts and projections, as well as the current
beliefs and assumptions of management. While the Company believes
such information forms a reasonable basis for such statements, such
information may be limited or incomplete, and our statements should
not be read to indicate that we have conducted an exhaustive
inquiry into, or review of, all potentially available relevant
information. These statements are inherently uncertain and
investors are cautioned not to unduly rely upon these statements.
Preliminary financial results remain subject to the completion of
the Company's customary quarterly close and review procedures.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which involve factors or circumstances that
are beyond ChannelAdvisor’s control.
ChannelAdvisor’s actual results could differ materially from
those stated or implied in forward-looking statements due to a
number of factors, including but not limited to, risks detailed in
ChannelAdvisor’s Annual Report on Form 10-K for the year ended
December 31, 2017, as well as other documents that may be filed by
the company from time to time with the Securities and Exchange
Commission. These documents are available on the 'SEC Filings'
section of the Investor Relations page of our website at
http://ir.channeladvisor.com. In particular, the following factors,
among others, could cause results to differ materially from those
expressed or implied by such forward-looking statements: our
reliance for a significant portion of our revenue on sales by our
customers on the Amazon and eBay marketplaces and through
advertisements on Google; our ability to respond to rapid changes
in channel technologies or requirements; our ability to compete
successfully against current and future competitors, which could
include the channels themselves; our reliance in part on a pricing
model under which a portion of the subscription fees we receive
from customers is variable, based upon the amount of transaction
volume that those customers process through our platform; our
reliance on non-redundant data centers and cloud computing
providers to deliver our SaaS solutions; the potential that the
e-commerce market does not grow, or grows more slowly than we
expect, particularly on the channels that our solutions support;
challenges and risks associated with our increasing international
operations; and security or privacy breaches. The forward-looking
statements included in this press release represent
ChannelAdvisor’s views as of the date of this press release.
ChannelAdvisor undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Accordingly, these forward-looking
statements should not be relied upon as representing
ChannelAdvisor’s views as of any date subsequent to the date of
this press release.
Media Contact:Ashley YakopecChannelAdvisor
Corporationashley.yakopec@channeladvisor.com 919-249-9848
Investor Contact:Garo ToomajanianICR,
LLCir@channeladvisor.com 919-228-2003
Reconciliation of Expected Adjusted EBITDA to
Expected EBITDA and Net Loss (Estimate) |
(unaudited; in millions) |
|
First Quarter 2018 |
|
Estimate |
Net loss
(estimate) |
$ |
(3.4 |
) |
Adjustments
(estimates): |
|
Interest
income |
(0.1 |
) |
Income
tax expense |
0.1 |
|
Depreciation and amortization expense |
1.5 |
|
Total adjustments |
1.5 |
|
Expected EBITDA |
(1.9 |
) |
Stock-based compensation expense (estimate) |
2.7 |
|
Expected Adjusted
EBITDA |
$ |
0.8 |
|
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