August 5, 2016

Triangle Business Journal

ChannelAdvisor CEO: Expect inflection in 2017

ChannelAdvisor CEO David Spitz has big expectations for 2017. That's when the "lagging" revenues will reach inflection, he told analysts this week.

The Morrisville-based e-commerce software company, which helps sellers manage their wares on multiple channels such as Amazon and Jet.com, has undergone a mammoth transition over the past several months – one that included layoffs last year as the firm switched up its sales strategy to focus on larger, bigger customers. The new strategy de-emphasizes the acquisition of smaller brands. And Spitz told analysts Thursday that it’s working – so much so that, if the numbers continue, an “inflection in revenue growth” will happen in 2017.

ChannelAdvisor (Nasdaq: ECOM) ended the quarter with 2,878 customers, and, while that number includes new customers such as Art.com and Reynolds Consumer Products, it’s slightly less than the 2,937 reported this time last year. Average commitments, however, were $37,000, a 16 percent increase from last year. As of June 30, 133 customers’ committed annual revenue exceeded $100,000. Compare that to last year’s total of 88.

The company reported $27.1 million in revenue for the quarter, a 12 percent increase year-over-year.

Spitz says customers migrating from lower tiers of service to higher-end tiers are driving the numbers – which was the goal in the revamp.

“Our strategy is clear and we are yielding results,” Spitz says.

Revenue is a lagging indicator, says Spitz, pointing to changes made last year that impacted sales capacity – from disproportionate headcount changes in the U.K. and Australia to ChannelAdvisor’s “tightening up a lot of our deal qualification criteria” as factors slowing those numbers.

Read More: http://www.bizjournals.com/triangle/blog/techflash/2016/08/channeladvisor-ceo-expect-inflection-in-2017.html