ChannelAdvisor (ECOM) IPO Rips Higher

May 23, 2013 10:04 AM EDT

ChannelAdvisor IPO Opens up 26%

The IPO for ChannelAdvisor Corporation (NYSE: ECOM) opened for trading at $17.60 after pricing 5,750,000 shares at $14.00, above the expected $12-$14 range. Shares have since moved up to $18.65.

Goldman, Sachs & Co. is acting as the lead book-running manager for the IPO. Stifel is acting as a book-running manager. Pacific Crest Securities LLC, BMO Capital Markets Corp., Needham & Company, LLC, and Raymond James & Associates, Inc. are acting as co-managers.

ChannelAdvisor is a leading provider of software-as-a-service, or SaaS, solutions that enable retailer and manufacturer customers to integrate, manage and optimize their merchandise sales across hundreds of online channels.

From 2010 to 2012, ChannelAdvisor's total revenue increased from $36.7 million to $53.6 million, a compound annual growth rate of 20.9%. Core revenue increased from $32.7 million in 2010 to $51.2 million in 2012, a compound annual growth rate of 25.1%. For the three months ended March 31, 2013 as compared to the same period in 2012, ChannelAdvisor grew total revenue from $12.2 million to $14.9 million, an increase of 22.1%, and core revenue from $11.5 million to $14.4 million, an increase of 25.2%. Gross margin, based on total revenue, expanded from 66.8% in 2010 to 72.5% in 2012, and from 73.3% in the first quarter of 2012 to 73.5% in the first quarter of 2013.

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