Delaware | 001-35940 | 56-2257867 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit Number | Exhibit Description |
99.1 | Press Release, dated May 5, 2016, “ChannelAdvisor Announces First Quarter 2016 Financial Results.” |
CHANNELADVISOR CORPORATION | |||
By: | /s/ Mark E. Cook | ||
Date: | May 5, 2016 | Mark E. Cook | |
Chief Financial Officer |
Exhibit Number | Exhibit Description |
99.1 | Press Release, dated May 5, 2016, “ChannelAdvisor Announces First Quarter 2016 Financial Results.” |
• | Total revenue of $26.3 million for the first quarter of 2016 increased 17 percent compared with total revenue of $22.6 million for the first quarter of 2015. |
• | GAAP net loss was $(4.6) million compared with a net loss of $(9.0) million in the first quarter of 2015. GAAP net loss per share was $(0.18), based on 25.3 million weighted average shares outstanding, compared with a net loss per share of $(0.36), based on 24.9 million weighted average shares outstanding in the year-ago period. |
• | Non-GAAP net loss, which excludes the impact of non-cash stock-based compensation, was $(1.1) million for the first quarter of 2016 compared with non-GAAP net loss of $(6.1) million for the first quarter of 2015. Non-GAAP net loss per share was $(0.04) for the first quarter of 2016 compared with a non-GAAP net loss per share of $(0.24) for the first quarter of 2015. |
• | Adjusted EBITDA, a non-GAAP measure, was $0.9 million for the first quarter of 2016 compared with $(4.2) million for the first quarter of 2015. Adjusted EBITDA excludes depreciation, amortization, income tax expense, interest and stock-based compensation expense. |
• | Cash at quarter end totaled $61.7 million, compared with $60.5 million at the end of the fourth quarter of 2015. |
• | Average revenue per customer, calculated on a trailing twelve-month basis, increased 13 percent to $35,753 for the twelve months ended March 31, 2016, compared with $31,630 for the twelve months ended March 31, 2015. Total customer count was 2,881 at the end of the first quarter of 2016, compared with 2,893 customers at the end of the first quarter of 2015. |
• | Fixed subscription fees were 77 percent of total revenue and variable subscription fees were 23 percent of total revenue for the first quarter of 2016. This compares to 78 percent and 22 percent, respectively, for the first quarter of 2015. |
• | Added new top-tier customers including American Apparel, America's Gardening Resource, Anastasia of Beverly Hills, Dynacraft, General Mills, Henkel, Mohawk Home, Overstock.com and Sketchers Inc. |
• | Announced integration with Walmart’s global marketplace, as the first launch partner to help retailers and branded manufacturers reach and optimize sales to Walmart’s large customer base. |
• | Launched several new technologies in April’s Spring Release, including Buy Local technology now incorporated into Where to Buy technology and Product Intelligence to provide branded manufacturers with insight into online sales across all channels. |
• | Total revenue between $26.6 million and $27.0 million. |
• | Adjusted EBITDA between $(2.0) million and $(1.0) million. |
• | Stock-based compensation expense between $3.5 million and $3.9 million. |
• | 25.5 million weighted average shares outstanding. |
• | Total revenue between $112.0 million and $113.5 million. |
• | Adjusted EBITDA between $0.5 million and $3.0 million. |
• | Stock-based compensation expense between $12.5 million and $14.5 million. |
• | 25.5 million weighted average shares outstanding. |
What: | ChannelAdvisor First Quarter 2016 Financial Results Conference Call |
When: | Thursday, May 5, 2016 |
Time: | 4:30 p.m. ET |
Live Call: | (855) 638-4821, Passcode 91560546 Domestic |
(704) 288-0612, Passcode 91560546 International | |
Webcast: | http://ir.channeladvisor.com (live and replay) |
March 31, 2016 | December 31, 2015 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 61,671 | $ | 60,474 | |||
Accounts receivable, net of allowance of $907 and $785 as of March 31, 2016 and December 31, 2015, respectively | 18,057 | 18,949 | |||||
Prepaid expenses and other current assets | 6,532 | 9,356 | |||||
Total current assets | 86,260 | 88,779 | |||||
Property and equipment, net | 15,561 | 16,696 | |||||
Goodwill | 21,632 | 21,632 | |||||
Intangible assets, net | 3,100 | 3,246 | |||||
Other assets | 722 | 603 | |||||
Total assets | $ | 127,275 | $ | 130,956 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,096 | $ | 2,435 | |||
Accrued expenses | 7,892 | 9,908 | |||||
Deferred revenue | 21,663 | 19,835 | |||||
Other current liabilities | 4,364 | 4,188 | |||||
Total current liabilities | 35,015 | 36,366 | |||||
Long-term capital leases, net of current portion | 2,031 | 2,031 | |||||
Lease incentive obligation | 4,864 | 5,084 | |||||
Other long-term liabilities | 3,232 | 3,551 | |||||
Total liabilities | 45,142 | 47,032 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of March 31, 2016 and December 31, 2015 | — | — | |||||
Common stock, $0.001 par value, 100,000,000 shares authorized, 25,435,213 and 25,230,958 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 25 | 25 | |||||
Additional paid-in capital | 242,997 | 240,360 | |||||
Accumulated other comprehensive loss | (758 | ) | (893 | ) | |||
Accumulated deficit | (160,131 | ) | (155,568 | ) | |||
Total stockholders’ equity | 82,133 | 83,924 | |||||
Total liabilities and stockholders’ equity | $ | 127,275 | $ | 130,956 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Revenue | $ | 26,347 | $ | 22,590 | |||
Cost of revenue (1) (2) | 6,913 | 6,416 | |||||
Gross profit | 19,434 | 16,174 | |||||
Operating expenses (1) (2): | |||||||
Sales and marketing | 13,346 | 15,636 | |||||
Research and development | 4,155 | 4,131 | |||||
General and administrative | 6,572 | 5,463 | |||||
Total operating expenses | 24,073 | 25,230 | |||||
Loss from operations | (4,639 | ) | (9,056 | ) | |||
Other income (expense): | |||||||
Interest expense, net | (21 | ) | (44 | ) | |||
Other income (expense), net | 55 | 6 | |||||
Total other income (expense) | 34 | (38 | ) | ||||
Loss before income taxes | (4,605 | ) | (9,094 | ) | |||
Income tax benefit | (42 | ) | (138 | ) | |||
Net loss | $ | (4,563 | ) | $ | (8,956 | ) | |
Net loss per share: | |||||||
Basic and diluted | $ | (0.18 | ) | $ | (0.36 | ) | |
Weighted average common shares outstanding: | |||||||
Basic and diluted | 25,292,405 | 24,930,451 | |||||
(1) Includes stock-based compensation as follows: | |||||||
Cost of revenue | $ | 269 | $ | 263 | |||
Sales and marketing | 1,102 | 1,147 | |||||
Research and development | 443 | 384 | |||||
General and administrative | 1,611 | 1,096 | |||||
$ | 3,425 | $ | 2,890 | ||||
(2) Includes depreciation and amortization as follows: | |||||||
Cost of revenue | $ | 1,243 | $ | 1,048 | |||
Sales and marketing | 307 | 278 | |||||
Research and development | 122 | 105 | |||||
General and administrative | 423 | 502 | |||||
$ | 2,095 | $ | 1,933 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (4,563 | ) | $ | (8,956 | ) | |
Adjustments to reconcile net loss to cash and cash equivalents provided by (used in) operating activities: | |||||||
Depreciation and amortization | 2,095 | 1,933 | |||||
Bad debt expense | 289 | 486 | |||||
Stock-based compensation expense | 3,425 | 2,890 | |||||
Other items, net | (270 | ) | 34 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 489 | (2,883 | ) | ||||
Prepaid expenses and other assets | 2,507 | (1,332 | ) | ||||
Accounts payable and accrued expenses | (3,121 | ) | 2,708 | ||||
Deferred revenue | 1,867 | 965 | |||||
Cash and cash equivalents provided by (used in) operating activities | 2,718 | (4,155 | ) | ||||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (637 | ) | (548 | ) | |||
Payment of internal-use software development costs | (100 | ) | (775 | ) | |||
Cash and cash equivalents used in investing activities | (737 | ) | (1,323 | ) | |||
Cash flows from financing activities | |||||||
Repayment of capital leases | (55 | ) | (342 | ) | |||
Proceeds from exercise of stock options | 272 | 75 | |||||
Payment of contingent consideration | (132 | ) | — | ||||
Payment of statutory tax withholding related to net-share settlement of restricted stock units | (1,060 | ) | — | ||||
Cash and cash equivalents used in financing activities | (975 | ) | (267 | ) | |||
Effect of currency exchange rate changes on cash and cash equivalents | 191 | 267 | |||||
Net increase (decrease) in cash and cash equivalents | 1,197 | (5,478 | ) | ||||
Cash and cash equivalents, beginning of period | 60,474 | 68,366 | |||||
Cash and cash equivalents, end of period | $ | 61,671 | $ | 62,888 |
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per Share | |||||||
(unaudited; in thousands, except share and per share data) | |||||||
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net loss (GAAP) | $ | (4,563 | ) | $ | (8,956 | ) | |
Plus: stock-based compensation | 3,425 | 2,890 | |||||
Net loss (Non-GAAP) | $ | (1,138 | ) | $ | (6,066 | ) | |
Weighted average common shares outstanding: | |||||||
Basic and diluted | 25,292,405 | 24,930,451 | |||||
Net loss per share: | |||||||
Basic and diluted (Non-GAAP) | $ | (0.04 | ) | $ | (0.24 | ) |
Reconciliation of Net Loss to Adjusted EBITDA | |||||||
(unaudited; in thousands) | |||||||
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net loss | $ | (4,563 | ) | $ | (8,956 | ) | |
Adjustments: | |||||||
Interest expense, net | 21 | 44 | |||||
Income tax benefit | (42 | ) | (138 | ) | |||
Depreciation and amortization expense | 2,095 | 1,933 | |||||
Total adjustments | 2,074 | 1,839 | |||||
EBITDA | (2,489 | ) | (7,117 | ) | |||
Stock-based compensation expense | 3,425 | 2,890 | |||||
Adjusted EBITDA | $ | 936 | $ | (4,227 | ) |