January 18, 2011 ChannelAdvisor Wraps Up Holiday Season with Biggest and Most Profitable Quarter in Company History
Company Outshines 2009 with a Nearly One-Billion Dollar Fourth Quarter
Research Triangle Park, NC – January 18, 2011 – ChannelAdvisor, a software and services solution provider that enables online retailers to sell more across e-commerce channels, ended 2010 just shy of a one-billion dollar gross merchandise value (GMV) for the fourth quarter, exceeding all previous GMV records and up nearly 19 percent compared with the fourth quarter of 2009. The company also reported record revenue and profitability during the fourth quarter, and posted its best annual revenue performance in history for the year ending 2010. ChannelAdvisor’s 271 new customer additions such as Dell, Herman Miller, Plow & Hearth, Quill, as well as Kitbag and The Range in the United Kingdom, helped the company obtain these tremendous milestones.
“This outstanding fourth quarter capped off a record-breaking year for our customers and us,” said Scot Wingo, CEO of ChannelAdvisor. “This year the holiday season began earlier; shoppers took advantage of promotions and discounts making Cyber Monday the heaviest day of online shopping we’ve ever experienced. Throughout the fourth quarter, e-commerce was the true winner with our customers experiencing growth of 14 percent.”
ChannelAdvisor retailers had a very active “Cyber 5,” the five days from Thanksgiving to Cyber Monday. On Thanksgiving Day, the company’s online retail same-store sales, which include retailers that have been customers for more than a year, rose to a 37 percent year-over-year increase. Similarly, Black Friday sales grew 28 percent over 2009.
ChannelAdvisor’s customers earned $28.7 million in GMV on Cyber Monday, another ChannelAdvisor record. Amazon same-store sales continued to surge at 98 percent growth, and eBay same-store sales grew by 15 percent. Cyber Monday exceeded expectations with ChannelAdvisor processing approximately six transactions per second that day, which amounts to more than 500,000 transactions.
“Our Cyber Monday sales increased more than double the industry average without us offering any discounts or special promotions,” said Brandon Proctor, vice president of marketing for Build.com, a ChannelAdvisor customer. “We offer a broad selection of home improvement products at competitive prices, backed by world-class customer service; combine that with ChannelAdvisor’s Comparison Shopping solution and we achieved record Cyber Monday sales without cannibalizing our profits.”
As business grew over the past year, so did ChannelAdvisor’s staff and its executive team. Throughout 2010, ChannelAdvisor hired 73 new employees globally, and within the executive team promoted David Spitz to president and chief operating officer and Brad Schomber to vice president of finance. Further, Tat Ng was hired as the vice president of engineering, joining the company from Rivermine, a provider of on-demand telecom expense management solutions. David Spitz, previously ChannelAdvisor’s chief operating officer, has been given additional responsibilities including global sales and marketing. Likewise, Brad Schomber, previously the director of finance, now also oversees global human resources.
In regard to product updates this quarter, ChannelAdvisor’s Comparison Shopping Engine (CSE) solution now fully supports more than 120 CSEs as well as Google Product Extensions and Google Product Listing Ads. ChannelAdvisor recently co-hosted a webinar with Google to help retailers understand how to best use these new tools from Google to sell more. A recording of that webinar is available at www.channeladvisor.com/webinars.
To help retailers kick off the New Year on the right foot, Wingo will be hosting his annual e-commerce review webinar “Top 10 Strategies to Grow Your E-Commerce Business in 2011” on February 2, 2011 at 2:00 p.m. EST. Wingo will offer his predictions for 2011 and tips to help retailers sell more this year. Register now at www.channeladvisor.com/2010recapwebinar.