Channeladvisor Corporation (ECOM) saw its loss widen to $8.06 million, or $0.31 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.56 million, or $0.18 a share. On an adjusted basis, net loss for the quarter was $2.59 million, when compared with $1.14 million in the last year period. Revenue during the quarter grew 7.52 percent to $28.33 million from $26.35 million in the previous year period. Gross margin for the quarter expanded 209 basis points over the previous year period to 75.85 percent. Operating margin for the quarter stood at negative 28.43 percent as compared to a negative 17.61 percent for the previous year period.
Operating loss for the quarter was $8.05 million, compared with an operating loss of $4.64 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.59 million compared to operating loss of $1.21 million in prior year period.
"We exceeded our guidance for revenue and adjusted EBITDA in the first quarter," said David Spitz, Chief executive officer of ChannelAdvisor. "Our first quarter performance reflects the execution of our strategy to focus on larger, higher quality customers, as demonstrated by increasing average revenue per customer and improving retention rates. We were able to achieve this performance despite a year-over-year decrease in Digital Marketing revenue, a dynamic that we expect to continue through the year, which we expect to be offset by improving trends in our Marketplace and Brands businesses. We remain confident that we will see revenue growth improve by the end of the year - led by our key Marketplace and Brands strategies - as we continue to focus on profitably driving top-line growth."
For the second-quarter, Channeladvisor Corp forecasts revenue to be in the range of $28.40 million to $28.80 million. Channeladvisor Corp forecasts revenue to be in the range of $123 million to $124.50 million for fiscal year 2017. Channeladvisor Corp projects net loss to be in the range of $7 million to $6.20 million for the second-quarter. For financial year 2017, Channeladvisor Corp projects net loss to be in the range of $18.10 million to $13.90 million.
Operating cash flow drops significantly
Channeladvisor Corp has generated cash of $0.35 million from operating activities during the quarter, down 87.09 percent or $ 2.37 million, when compared with the last year period. The company has spent $0.42 million cash to meet investing activities during the quarter as against cash outgo of $0.74 million in the last year period.
The company has spent $2.08 million cash to carry out financing activities during the quarter as against cash outgo of $0.98 million in the last year period.
Cash and cash equivalents stood at $63.39 million as on Mar. 31, 2017, up 2.78 percent or $1.72 million from $61.67 million on Mar. 31, 2016.
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