ECOM - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, welcome to the Q4 2020 ChannelAdvisor Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to turn the conference over to your host, Mr. Raiford Garrabrant, Director of Investor Relations. Sir, please go ahead.

Raiford Garrabrant

good and Ludy you, morning. Thank conference Welcome and the quarter for year to XXXX. ChannelAdvisor’s full fourth call With the Operating Executive Officer; Cornetta, me ChannelAdvisor’s Chief Beth Spitz, on ChannelAdvisor’s Segovia, call today ChannelAdvisor’s Officer. Chief Financial Officer; Rich David and are Chief a as This well details on performance outlook for the release our morning, press with quarter fourth we XXXX XXXX. issued our as first quarter website release at the of Investor press Relations on can accessed ir.channeladvisor.com. our be This section

after available conclusion In a call replay call. addition, of is and be this the recorded, being will the

During we subsequent statements that from uncertainties considered cause reflect that are be today These a These call, any obligation We are date. statements laws. under update will today’s materially to of could summarized to and make issued not the any disclaim release statements our any differ may variety federal expectations. to risks representative to that or outlook. statements of business we our These of forward-looking as should related press today. views risks our in only be views results forward-looking considered and actual of securities as subject

those our For other important affect sec.gov. which filings, risks the a website material please on recent SEC actual XX-K our in and at results, as discussion refer could that further our other most factors of to Form contained well the as are available

measures, including and which course call, interest to EBITDA, During non-GAAP we adjusted today’s of financial depreciation, refer the tax amortization, will excludes compensation. stock-based expense, income certain

non-recurring for also the BlueBoard XXXX EBITDA costs. also costs of excludes in and related For our quarter exclude for transaction severance XXXX, and acquisition that third adjusted

calculated divided revenue. EBITDA to by refer also is measure adjusted adjusted EBITDA which the as our We margin, related

flow. operating we press cash operating non-GAAP includes income income, margin, issued margin, expenses, operating reconciliations for Our and to EBITDA, free adjusted gross net profit, gross non-GAAP that GAAP release today

our posted section the We to our Investor supplemental also presentation in of non-GAAP website. GAAP schedule financial on provide a Relations reconciliation

Finally, questions, our comments metrics or that responses of future. insight the quarterly prepared analyst incremental at to may to presentation business the times let be usual provide dynamics may to we offer greater may our are the me With we to in in provide our our that results. over continue that, additional this or to David. detail turn Please not call advised or into

David Spitz

Thank you, customers e-commerce for us. as and record full we continued quarter business record execution, expanding What Raiford. quarter for success are a year, and year growth drove double-digit fourth results strong with our brands of another delivered and volumes

EBITDA very I’d outlook. highlights, guidance result, which on significantly a touch revenue of make on the our bullish adjusted both for exceeded quarter. our few and As like us to all a

off revenue. First, our subscription base. the and that our unit as and XX% our our on revenue, to of enjoy performance fourth quarter customer year-on-year superior revenue to proportion with larger will a total brands, focus XX% larger of we they up believe benefit positively long-term We to continue brands to our economics of XX% from pay represent with grow continue brands financial

and very two net brands. most and of with much drive off it results to gross continued of strong our brands of teams services and sales as with best half were of XXXX, years, momentum our that year bookings back the Second, roughly bookings our capping in of with thirds

will the add breadth over is least to the major recent Fifth, XXXX. accelerate subscription at base. top Digital support for our brand the GMV growing the triple-digit we’re to for and continue acceleration leadership revenue planning we by row, lastly, trust us. on a Many revenue other in And place our we due we us, recognized additional as customers double-digits XXX and part in performance, XX invest we to in anticipate of And And our year Zalando, grow Fourth, were the a by platform innovation, months. one subscription tension be XXX management to and channel the year customer-driven experienced on Commerce of and highlighting they’ll the another marketplaces our to the long that company. strong improvement investments us, as to Target our Supporting tell continued quarter. channels eBay inherent industry’s services and we in next execution X% enhancing think our our Plus, customers the and in position growth focus only ninth operating in delivered fast Third, as on and the leverage full fourth of them full over and than in channels year-on-year EBITDA was XXXX up continue of full-year public exceeding in channels Sixth, and model customer that in low sure with there’s others as at year-on-year. significantly XXXX of flow challenge. team Shopify and second, we’ve XX% to year over to small yielded well add adjusted this had cash in to was tail first for services our comprising more expand like quarter best full-year our those XX on revenue accept million, we marketplaces to million. our trend, $XX growth display platform volume. year based And rates as expect the $XX brand was the can this our for first marketplaces add Amazon Walmart ever and time I’m larger for we

customers in like functionality landed Spectrum by Gibson CURT the producing. customers adding expanded and And we emerging the the an we third and new exactly back and that really in existing in behavior what XXXX remain moment financial partners With quarter, pandemic. reps to seen year believe this help including acquisition early as we’re consumer with TCL because the & business that, off the enter in analytics that changed acquisition our as More lead, e-commerce in strategic We’ve we’ve the seen sales volumes of strong has normal. to business, investment SteelSeries significant with turn increased the and the that excited we number our execution in and into our paid We Calzedonia fourth sales with decisions quarter an customers to on a agree Chanel, of front, won also as our last ramp our for model on addition seen made brands. platform this we in and to brand half trusted expand plans while aggressively to investments right sales of over a as this, including the accelerate XXXX. Guitars, expanded number consensus that’s to make part brands and is from year investment Paykel most permanently service of analytics the We months count performance already increased we plan to investments, we’ve of broadly I’ll represent XXXX e-commerce. and Defacto, Manufacturing digital by Logistics an respected Appliances, for it likely Think in capacity one and BlueBoard, newer recent product Xerox gave a of and off make to been Brands. the investing came strategic flexibility in also prospects quarter. lean of we’re in the theme shelf year’s leading increase new Beth. results make our us Our success. our doing Fisher their us XXXX innovation, we partnership customers decade urgency by was Big, significantly, Overall, for drive customer and the and the in our employee during Electronics, Canada, XPO Mabe in XX% This and strategic kickoff started it. like we

Beth Segovia

best clients actions customers achieve to we’ve helping our is the again, and to are taken and encouraging thrilled able platform you reduced direction. significantly in you, continued commerce and testament improve skewed churn we year-over-year. important years, a and improvement towards year an reduced dollars, success. in to good customer and to QX. levels measured enable with moving sustained I’m ChannelAdvisor increased Thank customers, morning, online drivers we positive heavily and see Expansions which that continued on our improved seven churn almost This QX a as This expansions the to to is we share strong quarter, progress existing commitment achieved showed in Last to growth, such their had been rooted marked is to our upon that strong in commitment a experience. with the brand customer excellent goals, numerous in the ways, mentioned it’s be to of everyone. that finish today David trends

of achievement, account and with all-new and and clients, first delivering leadership help planning have chaos. through is more launching a new improved client decisions adopt on year XXXX the success achieved clearly are of proud that we our provide the flow terrific and posts, was webinars, however, getting progress initiatives just am our focused goal and a critical providing blog We amidst experience steady clients knowledge features, to started. exciting, What’s papers white specific intentional key a to most customers. in-app center I thought guidance for clarity improved and client make our for and an year improving

works the strengthen into As capabilities we to further. new in our projects we XXXX, move have

In a our course renewal, and of with initiative addition launching staying plan enterprise to transform first level further new improvement year strategic we’re to our the drive to service.

increase of engagement has in business, stickier attracting brand created expand to success customers depth large and our the Our our cultivate opportunity relationships.

making We’ve a and in game tech guidance Global relationships solutions, passionate identification, of how spent to to a of also online seasoned making new executive customers hiring raise enable industry clients. across capacity coverage successful. organization, of deeper large largest and of enable adding the her Services. and of deeper increasing and services manage for decades execution all with is cross-channel them We accelerated with strengthened VP serving Amy teams strategies, to portion to as meaningful services we enterprise in recent Rumford about has to our significant management nearly brand our increasing team Amy is our with experience the career two are terms opportunity investments expansion and roles enhanced provide our go customize plans managed account the enable

capabilities focused Let regarding platform our and expansion an insight e-commerce in-client development through me is new remains enabling and achieve Enabling digital success their share to innovation brands analytics, and product priority, recently released. experience. optimizing clear generating accelerate cross-channels our the on objectives now improving on transformation their we’ve update enhanced

and monitor in addition opportunities closely, marketplaces, Amazon and brand Walgreens to provides and to channels focus Furniture. Managed presence. as in can demand-side marketplaces Asia on their accelerate visibility, and relevant for power intend in council their ChannelAdvisor’s Paysfer channel or feeds. expansion, amplify dropship added channel a And XXXX, New fulfillment and new the Darty Services with particular five in platform Pacific. new enhancements Brands as to continuing sellers the France, health Sweden, Macy’s, utilize new Spartoo This optimize. to health this Back and and performance ChannelAdvisor to connections their channels with countries, first-party the Amazon’s Market we now addition of cross and platform expanded focus and to EMEA including U.S. Fantastic In well of to on

on earlier, impressive rate. has at GMV transacted the David an of mentioned grown the long tail marketplaces As

to more speed digital investment and support to are resources development, product channels expand clients. and them with includes right well reach of business clients there on-boarding as this of additional and as ongoing be transformation brand the working expansion. services enable enable accelerating intend This Our looking their fast. alongside across integration engineering, We to to management, their

Baby to reach. are consumer channels XXX available Jogger of BlueBoard super-energized division. offline Brand play role including clients study nearly with with owns equally for of more our demonstrated the online Analytics acquisition which success them our their brands, our and case brands expand website product brand that growing was in an partner our Newell the commercial appeal added than and Rubbermaid Crock-Pot, on a its A offering, important to recent We involving help and brands, manufacturer to XXX

used I as regularly Analytics would it’s retailers and with As offline impossible metrics distribution sales to supervise important difference at notes has Analytics, build Baby do that. independent harmony that The Brand daily, To be well manually. as check and monthly online trends across almost Jogger’s a exclusively is the works monitor be state of tremendous to and and ChannelAdvisor ChannelAdvisor without weekly, and retailer the assortment critically manager, Baby to the and the Brand craft who Jogger just would specifically right online, quote levels. maintain platform made blind. ability product channels. maintain result, a a its proper It software these to pricing to

efforts more opens closely able sales increase activity, with from, me helps marketplace. number and By retailers over retailers was Newell definitely the it retention. the happening has eyes for our momentum positive action than combined five. can to working These come. offering adopt that, update see what’s with for customers, initiatives and products awesome have an time, is ChannelAdvisor off and URLs us existing more my in good is their provide enhancing performance. a they partners customers Jogger is Baby what product terms was reactivate pass of driving patterns, our Tracking So, on now help sales offerings. Rich? We by new to diversify identified and XXXX where to take exciting XX%, great to understand things of service I’ll open then it’s improvements With XX in-store to We detailed coming strengthening who ensure overall rich to driving retailer to strides financial paid believe by Empowering brands more ChannelAdvisor, in our position made more execution. year our XXXX levels. this and by in it and with new expansions summarize, To about. all

Rich Cornetta

success many any in Thank operational good we Well, terms our historic exciting it’s a financial can morning, highlight record-breaking times. achieve; in the and lifetime. agree like To year, the to other you, on Beth, everyone. and all we and so certainly was use

dependency progress made increased as the significant we shift through the where of our support in have continued in habits. to platform overall expect investments brand’s shopping base, not We our and a pandemic, terms support and e-commerce but company only see execution strategic customer future, consumer the to on to for

a October to and bookings and holiday The performance more net third in fourth Following driven saw surge. return Prime strong exceptional even produced quarter, by quarter growth. where revenue a results we impressive Day the subscription season

earlier, cash with As in and and full-year adjusted results exceeded both operating adjusted revenue, provided we the David exceptional record free EBITDA mentioned November, guidance revenue EBITDA flow. meaningfully culminating historic and

revenue quarter million acceleration X% XX% subscription a X% at again, Total for driven quarter, This let’s the GMV, $XX.X e-commerce take increase in by year-over-year, XX% another $XX.X continued of boost. top an reached million $XX.X spending revenue volumes. at in strength growth on strong growth of of year-ago sequentially numbers. quarter, revenue period. a Now, representing the record once e-commerce closer the and look record the fourth by an up year-over-year. fourth the of and year-on-year reached Valuable revenue million, showed was Subscription from the as season broad-based totaled during increase holiday representing driven an

our returning financial specific to customers. in to brands to brands Looking stands our point at me provided the revenue is earlier was subscription total reaching points David like growth of XX%. on of from some a $XXX.X an total brands. subscription million pertain as really revenue they growth strong out year-over-year few the to details from QX, revenue annual basis basis, double-digit for metrics revenue up we additional have out XXX to period. prior-year XX% seen What I’d

is customer XX% for our net During increased we customer by brands now average revenue and $XX,XXX. brand’s count XXXX, approximately

a achieving greater up brands line So for business more believe than end Beth and stated goal see, revenue significant continued XXXX. of the investments all piece of this as XXXX by from can with brands our sight strategic along earlier, our of of that of to XX% we our you provide have the coming progress spoke to become of planned

profitability adjusted to EBITDA for adjusted generating XX $XX.X increased QX. to XX% for million of on margin the quarter year-over-year performance, Moving an EBITDA

expect of record For is that remind EBITDA $XX.X the a that profitability that under a continue in operating our from prior some for to full over travel example, would margin basis and – $X important year pandemic and XXXX, million everyone adjusted It a approximately would points savings XXX improved result environment. XXXX; to EBITDA was of from adjusted for of the not year. expense million we not normal improved is savings conference the

meaningful growth. in expense managed with profitable and XXXX, shown in even the have we successfully our profile we sales have investments As achieved organization,

As across customer and service, after attention upon record I’ll growth. year expand many breaking into moments a improving it the a top-line metrics, supporting continue few our further with we goal believe financial of investment advantageous to cycle and is XXXX

the to during cash with $X.X achieved representing quarter terms. at some turning contracts balance the and cash the our outlays annual associated sheet, payment Now, conference, of we vendor our and well performance, in finished million million connect this quarter have that P&L generation despite larger cash consistent strong $XX.X as as with equivalents large cash

million XXXX, was BlueBoard year remember the full XXXX. this the up For And over cash $XX.X includes acquisition.

the back We for also row, quarter million XXXX. achieved for driven half performance net of and increase second $X.X saw in bookings the deferred we revenue a strong the by in QX up

that are by As top-line in earlier, organization, to David investing in growth mentioned incremental confident sales. lean investment we pursue and as well some our product, as is in our the opportunities now time services

XXXX, on expense at the XXXX. the expect year earlier. initiatives we of sales million Also, made investments $X in impact during investments we Beth another XXXX, plan we’ll least the at least of making invest the We plus in to full on XXXX the first mentioned $X half add incremental of in million

Now, for our outlook. financial

GMV for providing any the outlook remained Therefore, not remains beyond financial year. precision levels to QX. with It difficult elevated. we full overall a are and Our forecast real GMV variable revenue

revenue to important reflects a revenue in growth range at representing of the $X.X an $X outlook XXXX, first year-over-year growth well subscription million, So, that and $XX.X is incremental as we and approximately EBITDA and the million million in of midpoint prior I as million quarter of OpEx, spoke range over of QX our XX% adjusted quarter. note It million. $XX.X our issuing for low between of are earlier the outlook the year, the $X.X double-digit investments of for

expect David low we continue mentioned, addition, double-digit In growth as revenue subscription year. to the throughout

at XXXX. the and EBITDA a of a long-term year, of goal XX% combined revenue we to last margin growth by beginning year-over-year rate issued Finally, of XX% adjusted

help raising growth Given In improved year XXXX. of XXXX us the to strategic as the ChannelAdvisor, XXXX success we our and believe next in we end shareholder call we by the David healthy now outlook, achieved transition are closing, flow. as final value will XXXX, some XX% margins revenue will history. have a revenue a focus to to on growth maintaining planned while to range company’s the well we phase cash With the in back was to in improve initiatives strong and remarks. our which XX% still for for this pass I sustained historic

David Spitz

Thanks, Rich.

enter coming believe leadership. we’re is that, our what e-commerce also positioned we third massive industry operator, we’ll And market. the beginning, we’re questions. open of with As growth built, than off drive decade, we’re better ever just record to proud a continued year, and we a to ahead we’ve and but And call go

Operator

And line question first of from Davidson. Thomas Instructions] Forte the our [Operator D.A. from comes

open. line Your is

Thomas Forte

Great.

lot capital David, quarter. raising is I So, going And the congrats selling on had, Amazon. aimed on the at of there’s on specifically that question a

raised year, that Thrasio alone fulfillment toward by essentially Amazon And that was the billion same are then year, companies there $X.XX this raised saw you if look buying by So, million $XXX end. last we sellers.

think one that Because leveraging leveraging essentially So, in different were that’s competencies is your and to of specific the you core a Amazon Thanks. what way greatest wanted of industry-wide my opinion. what thought then implications I for I Amazon ChannelAdvisor. and know meant

David Spitz

Thanks, Tom. Yes.

the investments space I overall just there. that’s out opportunity validate think the in the

We’re tracking these. about XX of

a a quite billion worth. you So, several investment quite as point there’s lot out, lot on of there’s going dollars

trade, could there’ll it’s, consolidation. then You maybe, of crowded be a eventually, argue little a bit some maybe

for multichannel, to of I ultimately, Over time, generate will these to I which how to watch us over risk. for. a go It’ll number be Amazon. an opportunity what there’s it – Amazon interesting see concentration want a and creates think how of I – how I think things alpha companies couple companies the navigate expect these consistent interesting them call

accelerate questions a think, much be there position? skill do are product some are everyone this brand-picking aggressively helps it in brands So, have, continue proprietary does for in global our companies it’ll the transition that larger but digital I it think – how So, their this I these to space. brands, draw to just space. to invest to realize or help overall, they competitive think, which I potential what’s answered. to need become it sustainable do And data market, to target longer-term

also of these I expect and to being customers as up will consolidators – of multichannel. end they that particularly several So seek ours, go

a bullet signal. So, I see it as

Thomas Forte

for follow-up then complimentary. question, that’s about And talk to I Excellent. my something want

I So, how three a been long what growing not quarters, marketplace favorite my is the longer, the you’ve second at to referred that’s fastest marketplaces if and rate. essentially, last you think which your tail giving of statistic, today and as biggest

tail that or see different this marketplace model, versus so significant warmly long consumers the sorry, ChannelAdvisor sellers of you profile other the in you margin why acceptance just to any companies by shopping for general is for of that of – a Amazon? brands do the and think So, manner? long do embrace is then trend So, starting as tail

David Spitz

it one as And second to became or towards Yes, the it’s year, end of when developments a marketplace the probably, interesting of our you of the great pointed last most largest it’s out, question. aggregate – channels. particularly me, set year,

represents I a think it few things.

add there, tenth easier easier fifteenth customers make to a it eighth Amazon or just shows it right. the others. collectively, or channels. the they’re quite channel. some obviously that customers good they’re these for individually, success third, necessarily new aren’t helping as or for who Walmart is or we’ve shop fifth, had our They as but huge, right. consumers, And or add someone not to to we don’t large. I big expand fourth, – exposure incremental our to it think,

on like example you be where is long Zalando in tail that example in most Allegro that, somebody, of and to Zalando marketplaces, you who a that specific find So, category. dominates the you see tail success is tends particular good or Germany see long in for regional is the what Poland,

a fashion. primarily, So,

think build Amazon to for people have there’s it there is to they category goes to the vibrant or success specific. with So, it in alternatives maybe you see a more region I country whether and really, out what marketplaces. be brands show really specific our get the that opportunity or

the As mean, I versus they marketplaces America. around not in of my earlier are thousands mentioned world. there they’re in more South remarks, want Philippines to the hundreds Korea the add I And additional ones. versus hundreds, if versus different South India and

you really, you and so And add and up this there ecosystem they’re pretty vibrant really them significant. have out

So, increase which it’s a a recognition today. just broaden year, more to their consumers additional this exposure add just this I this plan worldwide. are to great substantial that continue to way customers XX was think more that’s is where and from why ones general from to we we And

customers lot ChannelAdvisor, for example a want telling them need do add five but us to to able APAC, in have they marketplaces We for be everything these on that. of we to to put

access far there’s that a don’t I that know margin margin profile, would marketplaces of many through these your I question, different our to program. connect As us say profile dramatically as

achieve. I all. as But to we negative at impact connections see for the So, it what with don’t trying some cases, to in economic on arrangements the do they marketplaces margin us have And build they’re a depending us.

consumers. it ultimately, idea the gives I our to our like it In reach and and continues that GMV more to customers diversify ways more fact, base

Thomas Forte

Excellent. question. Thanks taking for my

David Spitz

Thanks, Tom.

Operator

Sebastian And our from question next Baird. comes line Colin from the of

open. is line Your

Colin Sebastian

opportunity also have capabilities is I up me. good additional I of of sell potential within platforms. like questions know a already, social you but for the I But And channel merchants subscription or comments U.S. morning, much. the follow-up of e-commerce it’s the of a through acceleration seeing Thank the year, proliferation growth apps of aggressively some over of clearly, the Instagram the your the or tail, I volume David, added lockdowns right more Maybe, a to – Pinterest in integrations on very start question. offering ongoing brands certain cetera. the performing role on that long et couple checks follow management how and or as TikTok Thanks is of QX and maybe, regarding maybe contributing And leg in from in business the near-term. and everyone. now. a wanted to stimulus a subscription But regions wonder course much you kind then we’re the very in well transactional side on realize

David Spitz

Colin. Thanks,

absolutely see big good social tail really, an thing long the being going from. believe over trend years thing where the on beauty next learned in question, So, one is interesting yes, that next e-commerce certain I I’ve the traction. a what example, or the to we represents really come like categories, especially opportunity, being – can if where some of many an the is that you never fully predict

of so caught partners so with we we our up coming worry keep that down worry and we that stay part flat-footed. that’s of customers value to being have what’s anticipation roadmaps, about we’re their working in is nimble. And our don’t and always And these customers things, with to

So, I think opportunity do there’s an there.

checks We into speculative about I can’t to going of imagine much our that more for lot a a when cash of it’s little on consumer’s the significant little going a first as seeing last it’s of went that part. to a certain kind in of April get to little think those from I them has on like focused something historically, for easier just on of it because out, marketplace been have GMV to that that round Facebook levels were bit bit merchants, smaller we saw a of landing question – more I levels your saw just stimulus, a certainly represents think an benefit how the accounts. checks it like I peg I to especially, day sure, almost said, opportunity. mean, think we I bit holiday categories, obviously but are pocket for example. hurts it’s people’s stimulus books. most

tailwinds. So, the contribute does I that some to probably of GMV think

I we pointing next few we don’t lap is QX the for that quarter. saw subscription reason obviously increase think that next GMV revenue the quarter we’re in expect function last quarters, to as the we that step last same see we know to

there’s be we points little durable, levels hard variable it to a full improved because not we’re growth, increased probably pointing form little and call to of and platform are subscription noise going to demand bit guiding indicates But at GMV day, our why sustainable to revenue in the to that a so the more and year. the revenue and that’s of longer-term it’s in And end that the of growth. retention. sales really the And for bit

phenomenon. think So more to us metric over go is we some continue of the through And a next the quarters, for of as comparables, noise to that’ll an especially, I share. the that few durable be important

Colin Sebastian

All right. David. Makes sense. Thanks,

David Spitz

Colin. Thanks,

Operator

line And Ryan our MacDonald of from next the question of comes needham.

Your open. line is

Ryan MacDonald

for sell the year. Thanks. out what in XXXX. when into new have the low guess double-digit was customer morning, an really on of commentary versus driving mix of taking subscription one pipeline terms more the the BlueBoard? you revenue comments impressed be some I talk to Good Yes. or you sort expectation fiscal I what you of would the that. and growth new into Can everyone. think again, throughout I’d Thanks about first visibility parts congrats that that driving cross of seeing you; love you on about excellent my marketplaces that and questions, number expansion of the hear about just for are by are for David,

David Spitz

Thanks, Yes. Ryan.

the deliver have some expectation. I speaking. to to we’ve sales at, bookings, we in with and and it levels visibility about expansion When retention. think, our comparable really at example, a our roughly look I But continue on performance to good those revenue to pegs Obviously, recent seen about need of of brands, half feel we that in think really pipeline. our are I decent for bookings we execute

pretty the to is me. our customer count last bullish So, brand we’ve year fact increased that XX%

on So count faster that grew revenue. customer actually growth brands than

will that leaves logos more generate we’re us opportunities for that new fact the expand pretty business so bullish. to the And further driving with me into them

I things course of far expect us revenue marketplaces. revenue because will as we of that’s to just next obviously number GMV some But from the going there attach harder months. I be for and over factored probably customers that our connections of out to building that those to that, like a given bit little predict. think some we’re benefits to be and our of into expanded, to really some year XX the those the marketplaces as So, a eagerness don’t opportunity, of

point. this at in that factoring really not we’re So,

sales the just So tackling our the for sales our well. basic we’ve where executing have year the quota and think like but strong execute, at give coming results feels had we’ve of looking in we I continue really been to team, the blocking our confidence. capacity, It this are. and targets couple being Obviously, me, above quarters we to expanded have into of us it’s last coverage that

Ryan MacDonald

you you of we’re through month seeing looks obviously, trends. like where strong on look a more post the environment guess what the follow-up GMV what know, a you like but curious growth? impact it. Got to been year very a have new will and the and post-COVID quite of starting to stimulus I not still of sort get of I’m be. as January, normalized sense or of normal perhaps early And a

David Spitz

fact, that a of in was we GMV it quite saw a towards growth was There significant January. January was step-up of but wasn’t from bit end strong. saw, the It Yes. an we And pretty that November acceleration December. pretty levels close.

to me. Colin’s looks like to things, may of comes pass to in few the significant the remained with directly that of much through weeks, next GMV pretty but levels far money have So amount is form so strong. And that to consumers. now January bullish of how that hard it this in kind stimulus some a always about of being flows stimulus, of to go additional that – through fairly right. the back point probably discussed influencing And know course, It’s quarter; pretty seems

it – additional to places, some its or predict. but in that much more it’s flowing finds happens is, the future. that’s there’ll Robinhood when not be than and it likely that distant or hard not way stimulus that and seems So, how e-commerce whether to other

Ryan MacDonald

very Thanks much. Excellent.

David Spitz

Ryan. Thanks, Absolutely.

Operator

the from comes Pfau question at William next our line of And Matt Blair.

Your line is open.

Matt Pfau

the on strong results. Congrats

David Spitz

you. is Hey quite – hear can’t Matt, your audio

Matt Pfau

me hear you now? Can

David Spitz

great. Yes. That’s

Matt Pfau

that, about you me? guys. hear Sorry Can

David Spitz

Yes.

Matt Pfau

Okay. Yes.

is obviously, When adding and differentiation how ask think So, there, I’m to difficult XXXX add for I there adding us marketplaces the there. how against I number platforms is? to be the rate wanted for you about you on difficult at competing an it trying to it just give you’re may what’s marketplaces it the a big those, maybe involved are? it idea of get how guess you is – competitive And at

David Spitz

Yes. Thanks, Matt.

marketplaces I one we that around differentiators the of world. it’s strongest our support think the breadth today of just

when our this And I of think example is lead, what an talking about. about I’m expanding so talk I

on directly, base marketplaces number not so what really is huge. a to a part which to to provide want of And experience. the marketplaces a our But high-quality access connect those seller effort in us is consumer case great

the some a of And manage connected our build. of they the plan to support to through we be partner the we today, it In suspect us and have so our I will also we that suspect access our case add, we through XX of them that that for integrations ecosystem. some there’ll that, program lot I be API, ones through

wouldn’t how you, those we to we For many example, marketplaces for APAC, heavy marketplace to because of say, come a us to in as expansions hey, we in are Pacific we do suppliers. number have seeing have don’t and demand those Asia customers local don’t because connect necessarily

want in to on global go is these we and marketplaces. that what have sell these So, brands do

been expected a build for we’ve And mean, of this doing we’ll infrastructure so some ourselves. actually the time. these, long I for I

look that’s we’re to does as dollars at of as have, so try how think years million we onboarded Because the I the we just a possible. And these think but customer the demand over few good to of come. we represent multiple at our of pay many both as off terms we do and it, opportunity, GMV it pretty in when really times again, part quickly get to accelerate an investment in on investment will that

I over good of we’re marketplace a breadth to that adding comes have lead fact we our differentiated extends think, pretty XX that already a the the more, it XXX when we in just well So, going support think I position from and and that front.

Matt Pfau

investments Where and in it. of in about success heading and of like hiring you organization. sales the around support, around headcount, in then primary service XXXX that XXXX into your terms And Got in sales terms the terms and at for What it seems are details headcount? customer focus of is for coverage area? any

David Spitz

Yes.

We or lot pleased beginning we I eyes the I year, sales this a for of capacity think, at we’ll where stage in have with coverage. – expect already the because obviously, we’ll to incrementally our invest call do terms of are we’re the set we the sales what think XXXX quota year; – towards of and XXXX. do we

whatever some this, with innovation ago then the them work trying like that Beth just Media with about, working the seeing. a and is for But do initially portfolio we’re I that or close portion we in already double-digits what’s We one the our have brands, And not we’re the countries. and some services opportunity their to maybe then country, more the investments marketplaces side that beyond Shoppable maybe, beyond the seen But We opportunities this analytics to a existing to side side, operate on a use comment think brands, probably got there when and closely transformation. just in on in and there’s in gap to we’re with did interesting penetrated our we they’re Maybe, product. but to – to year us brand. capacity. mix we sales the digital expect the our extent And don’t or or they’ve may they them on in more base. navigate There’s brand – drive maybe, just when think get customer a with So, of that just using. but XX we’re incremental on same we’ve I’ve help they obviously, think that work low of spoken capacity lead. were R&D typically investment continue strategically and them we really that on working significant momentum extend with we sales on

service and How with we really, And to bottom? strategic make call become think we them familiar the we investment we here do organization do on how really sure from top that is I So, really customers? what is are how on focused coverage with the our their if do service they becoming the give would to substantial. to year is to the to coverage focus think sales focus them was success sure on last we this strategically, pretty coverage make see help year them we understand expand the because really opportunity

front. know So, want our Beth, that, but that to to if you focus I on don’t add anything that’s

Beth Segovia

Yes. Nothing add. to

their learn deeper, to find more all their about transformation. capabilities business leverage and ways going that to continue they we just so accelerate We’re the our can can

Operator

B. [Operator Instructions] Our Securities. next question line of Riley comes Cummins from Zach the of

is open. line Your

Zach Cummins

air congrats just strong I I making guidance. the Thank know to that in GMV is for the up going ask for playing assumptions such and subscription QX year. but potential the double-digit the of of Rich, of you questions are we on low stimulus, there’s factors kind for the my Yes. to end few GMV you how a you wanted morning. Thanks. still Good but taking be revenue, out as the you’re rest know around quarter? anticipating

Rich Cornetta

Yes, morning. yes. great a question It’s and good

So, are remarks we growth with the our revenue. subscription we in for quarter mentioned low that double-digit prepared estimating

in million, roughly in around assume XX%, year-over-year assume, say rate something QX would variable you roughly, growth range XX% revenue. of growth – of we year, growth, a in last QX, same would which to effect variable the to if XX% saw $X.X would revenue that were that put XX%, in probably So,

how modeled for our out that’s I’ve So QX financial outlook.

Zach Cummins

with I you these of especially next the know customers? Got really brand couple and how has on ask there. years, your understand. been the kind that And then the do on a it. over the play But to brand out to lot your of, retail you you expect accelerating of customers around wanted I customers acceleration David, focus I focus

David Spitz

Zach. Yes,

think, I our business. an look, important part that’s of

it’s a I right. business, of characterize our think would more I the mature is, way it part

growth don’t obviously us. we the in investing for necessarily of I the expect provides we’re It that that to be that non-dilutive significant of areas with talked business So, to us about piece driver of funding invest today retail lot we’ve our the a in.

COVID and So, only about But stores click think of it’s hard look people’s harder, has like? differentiate. you it a right? commerce and what else business, forward I mature. And stuff, very, years, a a fast I when amplified I harder benefit the an selling stores, in being it’s when And other away. is to is is it’s again, middleman think to XX liability five if giving the and good particular, years, it of physical as one the – very having these landscape that asset lose opposed your a become Like for number this everything of almost

who I where be all ones, own proprietary products things. they brand, the they ultimately, a stronger the are years, own just – products, middleman, associated with sell the of think sells that the cetera. are harder I to or forward who the to attributes when of look the non-differentiated So, sort think five XX people’s brand We it’s other ones, who et

longer-term that stronger So for growth that’s is think we why we’re engine. and there focusing us the

Zach Cummins

Understood. side revenue was XXXX that give revenue growth there QX. And could to and the other into other wondering think we if the in I what really category; question a some strong about of your partnership final some and insight XXXX. within the strong is drove on me start you for growth opportunities just the as category saw little

David Spitz

Yes.

you revenue, right. other, know, as includes partnership So our probably

or our or help earlier, onboard, elements with marketplace make of I marketplace. a them work have sure that platform, arrangements they example, to, their onto roadmap, certain their for economic number to as and want more us we adopt partners, technology with So, of brands mentioned their we because

GMV those economic you when into customers as because also flow only is performance, of revenue strong not they that partnership our our but doing an well, well. indicator are arrangements, see So, partly that

seeing our us think it I was more us. of of sales ago but important what strategically, that that’s there. be and efforts and So, partnerships really to couple important you’re continues big years a our piece a for for expanding indirect identified pretty we

size that’s more of continued our the want investment opportunity. generation relatively on to The our us area We expansion right. direct continued and drive with through example, to Logistics We for good opportunity small, compared of want don’t forward. rely completely the just going still which And and of so force, sales an is a to network partners. more revenue XPO is focus

services logistics and they’re help ultimately to So, like their many companies, their value-added add ways customers for for right. customers looking ship more,

like we’re a for so perfect someone partner them. And

Zach Cummins

it. Got

David Spitz

Zach. you, Thank

Operator

are there over call would now And time. at turn further no the Garrabrant like Mr. questions this I to closing Raiford for remarks.

Raiford Garrabrant

Thank forward with soon. you, again, speaking We you us today. joining to everyone look for

Operator

Thank participating. gentlemen. and Thank call. conference you, this for today’s concludes ladies you

disconnect. may You now

ChannelAdvisor (ECOM) 11 Feb 212020 Q4 Earnings call transcript