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ChannelAdvisor Corporation (ECOM)
Q4 2013 Results Earnings Call
February 6, 2014 5:00 PM ET
John Baule - Chief Financial Officer
Scot Wingo - Chairman and CEO
David Spitz - President and COO
Jobin Mathew - Deutsche Bank
Terry Tillman - Raymond James
Chad Bartley - Pacific Crest
Greg Dunham - Goldman Sachs
Brad Reback - Stifel
Michael Huang - Needham & Company
» ChannelAdvisor Corp's CEO Discusses Q2 2013 Results - Earnings Call Transcript
» Audience's CEO Discusses Q4 2013 Results - Earnings Call Transcript
As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today, John Baule, Chief Financial Officer.
Good afternoon. And welcome to ChannelAdvisor's conference call for the fourth quarter of 2013. I am John Baule, Chief Financial Officer of ChannelAdvisor. With me on the call today are Scot Wingo, CEO and Chairman; and David Spitz, President and COO.
After the market closed today, we issued a press release with details on our fourth quarter and full year 2013 performance, as well as our preliminary outlook for the first quarter and the full year. This press release can be accessed on the Investor Relations section of our website at ir.channeladvisor.com. In addition, this call is being recorded and a replay will be available during the conclusion of the call.
During today's call, we will make statements related to our business that maybe considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date.
We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. These risks are summarized in the press release that we issued today earlier.
For a further discussion of the material risks and other important factors that could affect our actual results, please refer to those contained in our most recent Form 10-Q, as well as our other filings which are available on the SEC website at www.sec.gov.
During the course of today's call, we will refer to certain non-GAAP financial measures including core revenue which excludes revenue from two legacy acquisitions that are not a core focus of our business and other metrics. A reconciliation of all non-GAAP measures to the most comparable GAAP measure is included in our press release.
Finally, at times in our prepared comments or responses to your questions, we may offer metrics that are incremental to our usual presentation to provide greater insight into the dynamics of our business or our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future.
And with that, I will turn the call over to Scot Wingo for his prepared remarks.
Thank you, John, and thanks everyone for joining us today. 2013 was a year of many milestones for ChannelAdvisor. We added over 500 customers in the year, a 26% increase in customer’s year-over-year and ended the year with 2,429 core customers.
2013 total revenue was $68 million. Core revenue increased 29% on a year-over-year basis. On a constant currency basis core revenue grew 30% for the year and 31% in the fourth quarter.
It was also a milestone year for the ChannelAdvisor organization. In addition to executing on our IPO in May, the team opened three new geographies in Brazil, Hong Kong and Mainland China. These new geographies represent significant long-term opportunities for us.
To support our growth the organization matured significantly. We started 2013 with around 400 employees and ended with over 600 employees globally. To support that growth, we've added three new executives to our management team. Please join me in welcoming James Huang, our new MD of China; Diana Allen, our new General Counsel; and Judith Barnett, our new Vice President of Human Resources.
Next I want to congratulate our technology team on a great year where the theme was more channels and more geographies. We now support over 35 global marketplaces. 2013 additions include Best Buy and Groupon Goods domestically, play.com and Tesco in the U.K., La Redoute in France, MercadoLibre in Brazil. Also we expanded our Amazon support to include Italy, Japan and China. Finally, we added New Zealand's TradeMe marketplace.
In addition, we delivered innovative new features around Amazon, Fulfillment by Amazon solutions also known as FBA. We are also getting great customer feedback from our first efforts around Big Data that we call Actionable Retailer Insights.
Another technology milestone for us was Cyber Monday, Cyber Monday was our largest volume day ever and we processed over $500 in transactional volume every second. This represents a 370% increase from the average transactional volume during the rest of the year.
Architecting and building a system that can handle that type of spike and load is not a trivial matter and I wanted to congratulate our technology team on achieving such a huge milestone.
Our efforts in 2013 resulted in several awards including the Triangle Business Journal Businessperson of the Year, North Carolina Technology Association Software Company of the Year, Stevie Awards for Customer Service Department of the Year and finally the award I am most proud of, our third consecutive Best Places to Work award.