ChannelAdvisor’s Q1 revenue increases 16.4%

May 6, 2016 08:57 AM

Revenue for ChannelAdvisor Corp. increased 16.4% in the first quarter ended March 31, the company reported today. Without the impact of currency fluctuations, revenue would have increased 18%, the company said on a conference call discussing Q1 results.

ChannelAdvisor helps retailers sell on online marketplaces like,, and others, and it facilitates sales through comparison shopping sites and search marketing. 140 retailers in Internet Retailer’s Top 1000 use ChannelAdvisor to manage their marketplace sales, and 129 retailers to handle comparison shopping engine feeds.

ChannelAdvisor, which built its business on selling small and midsized online retailers, continues to focus on acquiring larger retailers and brands as customers. In Q1, the company added to its customer roster American Apparel Inc., No. 338 in the Internet Retailer 2016 Top 500 Guide, Inc. (No. 29) and Sketchers USA Inc. (No. 521 in the Internet Retailer 2016 Second 500 Guide).

Other clients ChannelAdvisor added during the quarter were: America’s Gardening Resource Inc., Anastasia of Beverly Hills, Dynacraft Inc. and General Mills Inc. The company did not specify which of ChannelAdvisor services these retailers are using, however CEO David Spitz said the majority of these customers signed up for Where to Buy and Product Intelligence services, as opposed to services that help them with marketplace sales. The Where to Buy service helps online visitors buy from online and local retailers, and Product Intelligence helps consumer goods manufacturers track e-retailers’ online assortment, content and pricing.

As of the end of Q1, ChannelAdvisor had 2,881 customers, compared with 2,893 customers a year ago. The average revenue per customer, calculated on a trailing 12-month basis, increased 13.0% to $35,753, compared with $31,630 a year ago.

ChannelAdvisor is working with Wal-Mart Stores Inc. (No. 4 in the Top 500) to help the retailer rapidly increase the number of merchants in its marketplace program. The two companies announced the plan at ChannelAdvisor’s annual Catalyst conference in April in Las Vegas. 

 “ChannelAdvisor appears to be a somewhat reinvigorated company that plans to expand its platform reach to include more brands/manufacturers, increasing “value-added” product enhancements, including data and analytics; as well as growing newer marketplaces, such as, and a more aggressive marketplace,” Colin Sebastian, e-commerce analyst at Robert W. Baird & Co., wrote in a note to investors on April 14 after an analyst meeting with ChannelAdvisor.

For the first quarter ended March 31, ChannelAdvisor also reports:

  • Revenue of $26.3 million, up 16.4% from $22.6 million in Q1 2015.
  • Net loss of $4.6 million compared with a net loss of $9.0 million.
  • Fixed subscription fees were 77% of revenue, compared with 78% a year ago.
  • Variable subscription fees were 23% of revenue, compared with 22%.



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