ChannelAdvisor, a leading provider of cloud-based eCommerce solutions that enable brands and retailers to increase global sales, today reported financial results for the fourth quarter and full-year ended December 31, 2021.
ChannelAdvisor Fourth Quarter 2021 Highlights
- Record total revenue of $45.4 million, up 13% year-over-year
- Subscription revenue increased 22% year-over-year
- Brands revenue increased 34% year-over-year
- Brands subscription revenue grew 42% year-over-year and represented 48% of total quarterly subscription revenue
- Net income of $33.7 million includes a tax benefit of $28.7 million driven primarily by a $29.4 million release of the valuation allowance recorded against deferred tax assets
- Adjusted EBITDA of $11.2 million
- Adjusted EBITDA margin of 25%
Full Year 2021 Highlights
- Record total revenue of $167.7 million, up 16% year-over-year
- Subscription revenue increased 23% year-over-year
- Brands revenue increased 39% year-over-year and reached 40% of total revenue, a new fiscal year high
- Brands subscription revenue growth of 47% year-over-year and represented 45% of total subscription revenue for the year
- Cash and cash equivalents of $100.6 million at year end, an increase of $29.0 million for the year
- Operating cash flow of $34.3 million
- Adjusted EBITDA of $37.9 million
- Adjusted EBITDA margin of 23%
- Free cash flow of $29.2 million, or $0.93 per diluted share based on 31.5 million diluted weighted average shares outstanding
“Q4 marked an outstanding finish to an amazing year for ChannelAdvisor,”
“Our strategic focus on brands continued to drive solid results, with record revenue, adjusted EBITDA that significantly exceeded the high end of our guidance and strong free cash flow that pushed our cash balance above $100 million. Our land and expand strategy with brands fueled these results, as we saw a strong increase in brands’ customer count and continued growth in average revenue per customer and annual recurring revenue during the year. We have a large, unpenetrated market opportunity, and believe with our continued focus on product innovation, channel expansion, strong sales, and revenue retention, as well as a debt-free balance sheet, that we’re well-positioned to drive sustainable revenue growth and strong margins in 2022 and beyond.”David Spitz, CEO, ChannelAdvisor.
Recent Business Highlights
We believe the following highlights are additional indicators of our position as a leading digital distribution platform for brands:
- Continued Product Innovation: ChannelAdvisor introduced new interactive analytics in its Advertising Console to help brands quickly discover trending information on all retail media campaigns. ChannelAdvisor also launched new options for advertisers with native integration for TikTok feeds and additional support for Walmart Sponsored Products Campaigns through Item BuyBox and Carousel Placements.
For its recently launched Commerce Network, an in-platform experience that enables online channels to easily scout, engage and grow with brands and retailers, ChannelAdvisor launched enhancements including Multiple Seller Profiles which enables sellers to differentiate how their brands, verticals, and business units are discovered by and promoted to different channels.
- Continued Channel Expansion: ChannelAdvisor remains laser-focused on global channel expansions to help address the evolving business needs of brands and retailers worldwide. With the recent addition of many new integrations, ChannelAdvisor now supports over 300 channels.
New global integrations include AliExpress in China, Brazil, France, Italy, Spain and Turkey; Back Market in Germany, Spain, Greece, Ireland, Italy, Portugal, Sweden and Slovakia; Hudson Bay in Canada and the U.S.; and Idealo and Limango in Germany. The company also added support for first-party integrations with Amazon across 17 countries, and in the U.S. with DSW, Journey’s, Martha Stewart and Urban Outfitters.
- Industry leadership: Named the #1 channel management vendor for the 10th consecutive year in Digital Commerce 360’s ‘Leading Vendors to the Top 1000 Retailers’ report. ChannelAdvisor is also ranked as the fourth-leading search engine marketing vendor, and a leading provider of online advertising services.
- New customers: ChannelAdvisor recently added notable new customers including Reynolds Consumer Products, Crown Pet Foods, Arnott’s Biscuits and De Longhi. ChannelAdvisor also expanded its relationship with customers such as Viewsonic, Sennheiser and Clorox.
Based on the information available as of today, ChannelAdvisor is issuing guidance for its first quarter of 2022.
|(in millions, except percentages)||Q1 2022|
|Revenue||$41.9 – $42.3|
|Adjusted EBITDA||$6.8 – $7.2|
|As a Percentage of Revenue (at the midpoint for Q1)||17%|
|Stock-based Compensation Expense||$3.0 – $3.4|
|Diluted Weighted Average Shares Outstanding||32.2|
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