ChannelAdvisor (ECOM) Misses Q4 EPS by 2c, Revenues Beat; Offers 1Q Revenue Guidance Above Consensus

ChannelAdvisor (NYSE: ECOM) reported Q4 EPS of $0.20, $0.02 worse than the analyst estimate of $0.22. Revenue for the quarter came in at $40.3 million versus the consensus estimate of $37.91 million.

Fourth Quarter 2020 Highlights

GAAP

• Total revenue increased 16% year-over-year to a record $40.3 million
• Brands revenue increased 27% year-over-year and reached 35% of total revenue, a new high
• Subscription revenue growth accelerated to 8% year-over-year
• GAAP net income was $6.1 million, or $0.20 per diluted share based on 30.6 million diluted weighted average shares outstanding

Non-GAAP

• Adjusted EBITDA increased 15% year-over-year to $10.8 million
• Adjusted EBITDA margin was 27%, similar to the prior year period

“Q4 marked a tremendous finish to a stellar year for ChannelAdvisor, with record revenue and strong adjusted EBITDA, both of which significantly exceeded our guidance for the quarter,” said David Spitz, ChannelAdvisor’s chief executive officer. “Continued solid execution and record e-commerce volumes drove success for our customers and rapid growth from brands during the quarter, with brands revenue for the quarter up 27% year over year. Another quarter of robust performance in sales, especially with brands, combined with outstanding revenue retention, drove the second consecutive quarter of acceleration in subscription revenue growth. Our strategy of empowering brands' digital transformation is paying off in a big way and we’re optimistic about our growth prospects going forward.”

GUIDANCE:

ChannelAdvisor sees Q1 2021 revenue of $37.3-37.7 million, versus the consensus of $34.95 million.

For earnings history and earnings-related data on ChannelAdvisor (ECOM) click here.

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