MORRISVILLE – Global ecommerce services provider ChannelAdvisor (ECOM) is rolling into the holiday season with the monemtum of a strong third quarter performance.
Early Thursday, the Morrisville-based company reported third-quarter net income of $1.7 million, after reporting a loss in the same period a year earlier, posting a profit of 6 cents per share. Earnings, adjusted for severance costs and stock option expense, were 12 cents per share.
The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 10 cents per share.
The provider of cloud-based ecommerce services posted revenue of $31.7 million in the period, which met Street forecasts.
“We are pleased with our solid performance for the third quarter,” said David Spitz, Chief Executive Officer of ChannelAdvisor, in a statement.
“Revenues were in line with our guidance range, and the work we did to improve profitability began to yield positive results with Adjusted EBITDA [earnings before income tax, deprecisation and amortization] and substantially exceeding our previous guidance and more than doubling as a percentage of revenue compared to the same period last year.
“With a focus on our key customer segment of brands, the strong performance by our international operations, and the investments we are making in our U.S. sales organization, we believe we are positioned to achieve improved revenue growth and continued margin expansion over time.”
For the current quarter ending in December, ChannelAdvisor said it expects revenue in the range of $33.8 million to $34.8 million.
The company expects full-year revenue in the range of $129 million to $130 million.
ChannelAdvisor shares have fallen 16% since the beginning of the year. The stock has decreased 18% in the last 12 months.
Read the full earnings report online.