ChannelAdvisor shares plummet 30 percent
08/05/2014 12:11 PM
08/05/2014 12:12 PM
ChannelAdvisor shares plunged 30 percent Tuesday as investors showed concern about a deceleration in the pace that the the e-commerce technology company is adding new customers.
Analyst Joel Fisbein Jr. of BMO Capital Markets wrote in a research note that although the company’s second-quarter performance featured better top-line and bottom-line results than Wall Street anticipated, those numbers were “overshadowed by a miss on net customer additions.” The second-quarter results were issued after the markets closed on Monday.
The Morrisville company added a net total of 108 customers in the second quarter, compared to 136 in the first quarter. Moreover, Fishbein had projected that the company would add 198 customers in the latest quarter.
Fishbein noted that the disappointing new customer numbers were “partially offset by an uptick in larger deals and sales into the existing customer base....Management indicated the pipeline is at record levels and shifting a bit towards larger customers.”
Fishbein maintained his “market perform” rating on the stock, which is equivalent to a “hold.”
During a conference call Monday, David Spitz, ChannelAdvisor’s president and chief operating officer, cautioned that it can be misleading to focus on customer growth numbers in isolation.
ChannelAdvisor’s cloud-based software enables retailers to integrate and manage online sales across a multitude of sales channels. Customers also use its software to automatically advertise products on search engines such as Google and Yahoo and to promote products on Facebook.
Join the Discussion
News & Observer is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.