E-commerce technology company ChannelAdvisor posted a surprising 24 percent jump in revenue in the fourth quarter, boosting its annual revenue past the $100 million mark for the first time.
Revenue for the fourth quarter totaled $29.4 million, up from $23.8 million a year ago. Analysts polled by Bloomberg News had projected revenue of $26.5 million.
“We delivered a very strong quarter, which we believe reflects the progress we made during a transition year,” Chief Financial Officer Mark Cook told analysts during a conference call.
Adjusted net income totaled $3 million, or 11 cents per share, a big improvement over its loss of $3.4 million a year ago.
ChannelAdvisor executives said the fourth-quarter results demonstrated the benefits of last year’s pricing overhaul and its focus on larger, more lucrative customers.
The Morrisville-based company had 2,898 customers in the fourth quarter, a dozen fewer than in the third quarter.
CEO David Spitz noted that the 100 largest customers accounted for 29 percent of revenue, up from 26 percent in the third quarter. The smallest 1,000 customers, by contrast, accounted for 6 percent of revenue.
“For us, it’s about quality of customer,” Spitz said.
For all of 2015, revenue totaled $100.6 million, up 18 percent. The company’s adjusted loss was $7.3 million, or 29 cents per share, versus a loss of $26 million in 2014.
The company projected that revenue for 2016 would be between $111 million to $113 million, which would be an increase of 10 percent to 12 percent. Analysts have been projecting revenue of $113 million.
ChannelAdvisor’s cloud-based software enables retailer to integrate and manage online sales across a multitude of sales channels and to automatically advertise and promote their products online.
ChannelAdvisor reported its quarterly earnings after the markets closed Thursday. Earlier in the day, its shares closed at $11.82, up 38 cents. The company’s shares have fallen 15 percent this year.