ChannelAdvisor (ECOM) Tops Q1 EPS by 1c, Revenues Beat; Offers 2Q Revenues Guidance Above Consensus

ChannelAdvisor (NYSE: ECOM) reported Q1 EPS of $0.18, $0.01 better than the analyst estimate of $0.17. Revenue for the quarter came in at $39.2 million versus the consensus estimate of $37.43 million.

First Quarter 2021 Highlights GAAP

• Total revenue increased 22% year-over-year to $39.2 million
• Subscription revenue growth accelerated to 17% year-over-year
• Brands revenue increased 39% year-over-year
• GAAP net income was $5.5 million, or $0.18 per diluted share based on 31.1 million diluted weighted average shares outstanding
• Operating cash flow increased 46% year-over-year to $8.4 million
• Cash and cash equivalents were $82.4 million, an increase of $26.0 million since March 31, 2020 and an increase of $10.8 million since December 31, 2020
• Deferred revenue increased by a record amount to $25.4 million, up $6.1 million since March 31, 2020 and up $2.6 million since December 31, 2020

Non-GAAP

• Adjusted EBITDA increased 41% year-over-year to $9.2 million
• Adjusted EBITDA margin was 23%, up three points year-over-year
• Free cash flow was $7.4 million, or $0.24 per diluted share based on 31.1 million diluted weighted average shares outstanding

“Q1 marked another quarter of exceptional financial results and meaningful progress on our brands strategy, underpinned by accelerating momentum across our business,” said David Spitz, ChannelAdvisor’s chief executive officer. “Revenue and adjusted EBITDA both significantly exceeded our guidance for the quarter, driven by continued strong execution, product innovation, and robust e-commerce volumes. Our strategy drove success for our customers and rapid revenue growth from brands, with revenue from brands up 39% year over year during the quarter. Continued strength in sales, especially with brands, combined with excellent customer expansion and retention, drove record net bookings and the third consecutive quarter of acceleration in subscription revenue growth. Our strategy of helping accelerate brands' digital transformation has continued to pay off and we remain excited about our growth prospects going forward.”

GUIDANCE:

ChannelAdvisor sees Q2 2021 revenue of $39.8-40.2 million, versus the consensus of $37.7 million.

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

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