Channeladvisor Corporation (ECOM) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $5.84 million, or $ 0.21 a share in the quarter, against a net loss of $0.68 million, or $0.03 a share in the last year period. Revenue during the quarter grew 7.91 percent to $31.76 million from $29.43 million in the previous year period. Gross margin for the quarter expanded 71 basis points over the previous year period to 77.86 percent. Operating margin for the quarter period stood at positive 0.70 percent as compared to a negative 2.71 percent for the previous year period.
Operating income for the quarter was $0.22 million, compared with an operating loss of $0.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $3.28 million compared to $2.88 million in the prior year period. At the same time, adjusted operating margin improved 55 basis points in the quarter to 10.32 percent from 9.77 percent in the last year period.
"We continue to make steady improvements toward our long-term objectives. For the fourth quarter, revenue was within our guidance range, while adjusted EBITDA significantly exceeded the top end of our expectations," said David Spitz, chief executive officer of ChannelAdvisor. "Reflecting our ongoing shift to larger customers, our average revenue per customer continued to grow in the fourth quarter. Our marketplaces module and our brands solution were significant drivers of our revenue growth in 2016, and we expect them to continue to drive our growth in 2017. Our top priority is to deliver improving revenue growth while maintaining positive adjusted EBITDA, and we believe we are well-positioned to execute toward those objectives."
For the first-quarter, Channeladvisor Corp projects revenue to be in the range of $27.30 million to $27.70 million. Channeladvisor Corp projects revenue to be in the range of $123 million to $124.50 million for financial year 2017. Channeladvisor Corp expects net loss to be in the range of $7.90 million to $6.50 million for the first-quarter. For fiscal year 2017, Channeladvisor Corp expects net loss to be in the range of $16.50 million to $12.30 million.
Operating cash flow turns positiveChanneladvisor Corporation has generated cash of $11.57 million from operating activities during the year as against cash outgo of $1.46 million in the last year. The company has spent $1.96 million cash to meet investing activities during the year as against cash outgo of $4.25 million in the last year.
The company has spent $3.90 million cash to carry out financing activities during the year as against cash outgo of $1.59 million in the last year period.
Cash and cash equivalents stood at $65.42 million as on Dec. 31, 2016, up 8.18 percent or $4.95 million from $60.47 million on Dec. 31, 2015.
Working capital remains almost stable
Channeladvisor Corporation has witnessed a decline in the working capital over the last year. It stood at $52.14 million as at Dec. 31, 2016, down 0.53 percent or $0.28 million from $52.41 million on Dec. 31, 2015. Current ratio was at 2.19 as on Dec. 31, 2016, down from 2.44 on Dec. 31, 2015.
Days sales outstanding went down to 28 days for the quarter compared with 30 days for the same period last year.
At the same time, days payable outstanding went up to 31 days for the quarter from 17 for the same period last year.
Debt comes down significantly
Channeladvisor Corporation has recorded a decline in total debt over the last one year. It stood at $1.26 million as on Dec. 31, 2016, down 37.86 percent or $0.77 million from $2.03 million on Dec. 31, 2015. Channeladvisor Corporation has recorded a decline in long-term debt over the last one year. Total debt was 0.91 percent of total assets as on Dec. 31, 2016, compared with 1.55 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year.
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