Shares of e-commerce technology company ChannelAdvisor jumped as much as 33 percent in after-hours trading after it posted a 26 percent increase in revenue and a loss that was lower than expected.
ChannelAdvisor also announced Thursday that it has acquired an early-stage company with nearly 20 employees in an effort to expand its appeal to brands that don’t sell directly to consumers online. The acquisition price wasn’t disclosed.
Up to now, it’s been a tough year for ChannelAdvisor’s stock. Its shares have fallen 70 percent – including a 30 percent plunge after its second-quarter results raised concerns about a deceleration in the pace of new customer additions.
ChannelAdvisor’s third-quarter results were released after the markets closed. Revenue totaled $21 million, in line with what analysts were expecting and up from $16.6 million a year ago.
Never miss a local story.
CEO Scot Wingo noted during a conference call with analysts that the company’s revenue rose twice as fast as the overall e-commerce market.
ChannelAdvisor posted a loss of $6.5 million after excluding stock-based compensation, or 26 cents per share, compared to a loss of $3.8 million a year ago. But analysts were expecting its loss to be wider by 2 cents per share.
ChannelAdvisor has been forsaking profits in exchange for accelerated growth by expanding its sales-and-marketing team. 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.