Business

ChannelAdvisor’s revenue growth decelerates

E-commerce technology ChannelAdvisor generated a 12.1 percent increase in revenue but posted a slightly larger net loss in the second quarter.

The Morrisville-based company reported after the markets closed Thursday that quarterly revenue totaled $27.1 million, up from $24.2 million a year ago.

The company’s adjusted net loss, after excluding stock-based compensation and other costs, totaled $2.8 million, versus a $2.6 million net loss a year ago. Net loss based on generally accepted accounting principles was $6.7 million, or 26 cents per share, versus $6.5 million a year ago.

Revenue exceeded the high end of the company’s earlier guidance but lagged behind the first quarter’s 17 percent growth and the fourth quarter’s 24 percent jump.

CEO David Spitz told analysts during a conference that revenue was a “lagging indicator” of the changes the company instituted last year when it overhauled its pricing and payment policies, and realigned its sales and marketing efforts, to focus on larger customers.

Citing increased bookings, without supplying specifics, Spitz said that “if we continue to execute in the back half of 2016, we believe an inflection in revenue growth is possible some time in 2017.”

“I hope we’ve been clear for several quarters that we anticipated the deceleration in revenue growth that we are now seeing,” he added. “This was the price of shifting our customer base and making substantial improvements to our profitability in order to ensure the long-term sustainability of our business.”

ChannelAdvisor’s average revenue per customer over the past 12 months rose 16 percent to a record $37,000, Spitz said.

ChannelAdvisor’s cloud-based software enables retailer to integrate and manage online sales across a multitude of sales channels. Retailers also use its software to automatically advertise products on search engines such as Google and Yahoo and to promote products on Facebook.

Earlier Thursday, ChannelAdvisor shares closed at $15.71, up 10 cents. Its shares have risen 14 percent this year.

David Ranii: 919-829-4877, @dranii

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