January 30, 2009 ChannelAdvisor Acheives Operating Profit and Announces Restructuring
ChannelAdvisor Achieves Operating Profit and Announces Restructuring
Leading provider of e-commerce channel management solutions has solid fourth quarter growth despite tough economic backdrop
Research Triangle Park, NC – January 23, 2009 – ChannelAdvisor, the leading provider of e-commerce channel management solutions, announced today that it reached operating profitability in the fourth quarter of 2008. Additionally the company plans to undertake restructuring to further streamline its business and better position itself for an uncertain economic downturn.
In the fourth quarter of 2008, ChannelAdvisor recorded gross merchandise value (GMV) of $775 million and for the full year, ChannelAdvisor recorded GMV of $2.6 billion. This represents 34% growth in GMV from 2007. Additionally, the company continues to experience strong customer growth, now boasting more than 110 top internet retailers from the prestigious Internet Retailer magazine’s Top 500 list. Over the last year, the average ChannelAdvisor customer’s sales grew at 7% while e-commerce grew at 4% proving that retailers continue to find great value from ChannelAdvisor’s solutions during this economic slowdown.
In the fourth quarter of 2008, ChannelAdvisor recorded revenue of over $10 million and for the full year, ChannelAdvisor recorded revenue of over $35 million. This represents 44% growth in revenue from 2007. Even in this challenging economic environment, ChannelAdvisor reached operating profitability in the fourth quarter of 2008 and will continue to see growth, reach goals and strengthen their position as an industry leader.
ChannelAdvisor plans to undertake changes geared to optimize its workforce, facilities and products in order to adjust to the current economy while positioning to leverage future growth in 2009. As part of the changes, ChannelAdvisor is reducing its global workforce by 19%. Those whose jobs will be eliminated will be offered severance.
“ChannnelAdvisor had a solid quarter and we will continue to focus on profitability and growth in 2009,” said Scot Wingo, Chief Executive Officer of ChannelAdvisor. “The restructuring steps we’re taking are designed to better position the company for potentially deteriorating macro economic conditions. These steps will lower our overall operating costs and enable us to weather the current economic storm.”