Shares of ChannelAdvisor (ECOM 2.96%) have plummeted today, down by 15% as of 1:20 p.m. EDT, after the company reported second-quarter earnings. The results barely beat the market's expectations.
Revenue in the second quarter was $37.4 million, slightly ahead of the $37.3 million in sales that Wall Street was modeling for. That resulted in adjusted net income of $9.8 million, or $0.33 per share, compared to the consensus estimate of $0.32 per share in adjusted profits. The e-commerce technology company ended the quarter with $63.9 million in cash, up approximately $8 million on a sequential basis.
"Strong revenues were driven by sustained and broad-based growth in GMV as e-commerce spending remained elevated throughout the quarter, consistent with broader e-commerce trends as the COVID-19 pandemic caused a shift in consumer buying behavior," CEO David Spitz said in a statement. "Continued expense discipline and the scalability of our business model contributed to a significant improvement in profitability and cash flow as well."
After the close of the second quarter, ChannelAdvisor acquired e-commerce analytics company BlueBoard for an undisclosed amount. The company also established a $25 million revolver that it can tap for general corporate purposes that will be available until August 2023.
Guidance for the third quarter calls for revenue of at least $34 million, with adjusted EBITDA of at least $6.5 million. Analysts are expecting ChannelAdvisor to generate $33.2 million in sales in the third quarter. The company declined to provide full-year guidance.
"Although it remains difficult to forecast near-term GMV and variable revenues, we believe e-commerce trends are likely to remain strong and that we are well positioned to benefit from these trends," Spitz added.