ChannelAdvisor Corporation (ECOM) saw its loss narrow to $2.55 million, or $0.10 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.79 million, or $0.19 a share. On an adjusted basis, net profit for the quarter was $0.31 million, when compared with net loss $1.69 million in the last year period.
Revenue during the quarter grew 14.82 percent to $27.99 million from $24.38 million in the previous year period. Gross margin for the quarter expanded 147 basis points over the previous year period to 75.67 percent. Operating margin for the quarter stood at negative 9.57 percent as compared to a negative 19.46 percent for the previous year period.
Operating loss for the quarter was $2.68 million, compared with an operating loss of $4.74 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.18 million compared with $0.71 million in the prior year period. At the same time, adjusted EBITDA margin improved 489 basis points in the quarter to 7.79 percent from 2.90 percent in the last year period.
"Our third quarter revenue was above our guidance and when combined with our strong execution resulted in positive adjusted EBITDA, which also exceeded our guidance," said David Spitz, chief executive officer of ChannelAdvisor. “Despite foreign currency headwinds, our total revenue increased 15% and revenue from customers in the United States grew 20% from a year ago. Our strategy to attract larger customers and brands, and to deliver increasing value to help existing customers grow, contributed to these results. Our third quarter performance reinforces our confidence that we remain on the path to returning to sustainable increasing revenue growth and improving profitability in the years ahead.”
For the fourth-quarter, Channeladvisor Corp expects revenue to be in the range of $31.70 million to $32.10 million. Channeladvisor Corp expects revenue to be in the range of $113.10 million to $113.50 million for financial year 2016.
Operating cash flow turns positive
ChannelAdvisor Corporation has generated cash of $9.37 million from operating activities during the nine month period as against cash outgo of $4.80 million in the last year period.
The company has spent $1.12 million cash to meet investing activities during the nine month period as against cash outgo of $3.60 million in the last year period.
The company has spent $3.68 million cash to carry out financing activities during the nine month period as against cash outgo of $1.69 million in the last year period.
Cash and cash equivalents stood at $64.73 million as on Sep. 30, 2016, down 99.89 percent or $58,919.27 million from $58,984 million on Sep. 30, 2015.
Working capital decreases marginally
ChannelAdvisor Corporation has witnessed a decline in the working capital over the last year. It stood at $48.35 million as at Sep. 30, 2016, down 1.84 percent or $0.91 million from $49.25 million on Sep. 30, 2015. Current ratio was at 2.25 as on Sep. 30, 2016, down from 2.49 on Sep. 30, 2015.
Days sales outstanding went down to 52 days for the quarter compared with 61 days for the same period last year.
At the same time, days payable outstanding went up to 29 days for the quarter from 27 for the same period last year.
Debt comes down significantly
ChannelAdvisor Corporation has recorded a decline in total debt over the last one year. It stood at $1.52 million as on Sep. 30, 2016, down 29.57 percent or $0.64 million from $2.15 million on Sep. 30, 2015. Channeladvisor Corp has recorded a decline in long-term debt over the last one year. It stood at $1.52 million as on Sep. 30, 2016, down 29.57 percent or $0.64 million from $2.15 million on Sep. 30, 2015. Total debt was 1.20 percent of total assets as on Sep. 30, 2016, compared with 1.78 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.02 as on Sep. 30, 2016, when compared with the last year.
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