ECOM - Earnings call transcript Q3 2021

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Operator

Thank you for standing by, and welcome to the ChannelAdvisor Third Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, today’s program may be recorded. I would now like to introduce your host for today’s program, Raiford Garrabrant, Director of Investor Relations. Please go ahead, sir.

Raiford Garrabrant

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

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

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

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

that the release to financial measures, non-GAAP press will issued all certain course are the refer call, which reconciled today’s During in we of today. of we

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

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

David Spitz

you, Thank Raiford.

for equates recent the durability during $XXX adjusted million Day, consistent keep double-digit least strong $XX year-on-year least about gains grew driving while compared on growth growth adjusted of on to XX% strategy the XXXX. revenue confident margins of to growth, bullish we GMV And million across our the QX, at nice at our year-over-year. and revenue acceleration direct a XX% growth in consecutive focusing subscription QX At that exceeded QX, of we COVID-XX. highlighting well have will our with of extremely long-term execute financial highlights these high-end trends, of XX% and result EBITDA long-term EBITDA and I that adjusted in in record a QX, QX, Analyst revenue Total to also the continue us this made at We to touch targets revenue the sequential revenue range. for e-commerce introduced of and brands been year by growing accelerated and the timeframe. investments This of key solid That fifth on EBITDA targets. year-on-year, business showed low double-digits quarter our guidance few making. is a least now

revenue The leading from accelerated in bookings of trends future net This indicators quarter positive by revenue of strong of quarter fueled and QX growth are revenue First, potential. our revenue growth performance performance impressive despite tough was year-on-year and comparisons. another retention. bookings subscription growth important another in in strong

some and of exceeded the data illustrate continued XX% on from and year-over-year brands help record to recently Second, brands revenue again brands of to on drive In our high. focus our subscription our We brands. XX% an benefit represented subscription QX, revenue, focusing off revenues. all-time growth pay shared

ended of June customers. their under retention rising by durable positively a driven which One a in that will base. business retail presented total mix XX metric from XX revenue we believe seen our grow unit over basis. our superior benefit part to of as for XXXX, company models to improved and XX% economics on brands of retention have a larger financial XXXX size We This exhibit months with revenue more tend proportion than large they brands, performance continue XXX% to June net these of characteristics was to larger months because for long-term subscription represent the favorable dollar customer ended the

another it of in a our between continued has achieve represent of well-balanced grown Third, healthy strategy. land-and-expand our new Brands and bookings helping majority fairly QX, logo demand activity which expansions, been and bookings. strong quarter for our to products us substantial have indicative of is

efforts to platform addition the solid in retention by recent team services of driven improvements and sales In activity, enhancements. our saw we

to to schedule are flexibility like in and build channel customer their feel on across providing solutions and We with continuing growing these customers which enterprise innovation of drop-ship of are consumers of and and expansion towards. invest positive the continued success gravitating product ahead a Fourth, level in initiatives our can our we QX, us present help rapid marketplaces array that of products our pace service, trends. pacing reach

represents this recall, supported expanding comprising channels Plus, large fast-growing in long Target our Zalando, and tail well our aggressively initiatives channels GMV. you pool Wayfair XXXX. And others, is has XXX and of why As a that? like of of over one been growth Shopify, Because marketplaces

with us our GMV to Walmart only our marketplaces diversify further time. offering XXXX triple In in fact, and months why market continued and has the healthy to we Adjusted EBITDA more to customers long the the of second third the connect That’s flow. as services June eBay across long even disciplined XX our By lean financial in of fashion. consumers, and model our to at investments growth deliver helped robust in begins again extended a to cash tail margins quarter XX% ended the with in ways for in QX. our for was continued with larger our XX% business no we nearly QX, and the margin product, free opportunity in at three strategy we sales, to lead it the rate investing adjusted dollars market Also, tail capital nearly of was of and in continue GMV. outpace with $XXX same million EBITDA converted on and in intend flow, market to our allocation top reinvesting debt, grew large for of discipline aggregate front with we in business a growth leadership us, hand, and terms cash Amazon Fifth, cash than initiatives.

patterns shape with Most in rightly and different in almost to industry availability to of spending some every recent me of We which the or products but see based very and product shipping are maintain has high on shipping is the all impacted that disruption, about I those by solid Now, corner strong It chain and of the might shift channels, we a brands reliability factory consumer been patterns the speeds. the costs months all so. likely been holidays, ask confidence spending seems issues. of speak favor remains and through believe those consumers’ dealing labor and customers of has over supply lot inventory, news people with closures, and shortages. in

also believe into XXXX. that are to We likely these persist challenges

account challenging in seen year. most this we though outlook. to-date, those haven’t continued strength make despite last and risks related does are our year through into significant noting COVID, It’s taking in in contrast a to bit like we GMV of lack to saw things worth Prime forecasting it Amazon impact that near-term While more we a growth October, the Day

at welcome to pleased are Technology Officer our of Himanshu President we Finally, is Directors. Board Palsule Software. Epicor Himanshu and Chief to

As to we and be make invaluable to ERP will of growing we the a has our welcome expertise In to has business to who a board. provider a believe this software-as-a-service transformed time. experience Epicor, him reiterate a solutions, fast our leader I’d industry Himanshu the contribution technology modern significant ChannelAdvisor. leading is are into His and why excited closing, like to insights portfolio

First, our strong to with low brands, addressable strategic Second, economics. dollar total penetration market massive we have focus a drive unit multibillion

model will to have proposition of the and profit the an has attractive that, over our financial turn growth Third, And stronger. Beth. revenue fourth, strong never With margins. combination been I we call with value double-digit

Beth Segovia

revenue, that and as online shoppers awareness more registrants increase XX in business we hosting curated in hosting By serves was in our the a decade X,XXX our Connect record by annual X been David tapping that retailers XXXX, QX than busy and it’s morning you, third a everyone. by conference more for reach began Thank countries. off well-attended and achieving Day ChannelAdvisor quarter with Analyst an awesome community to brands it all good months. investment help virtual

and Xiaomi notable added mentioned, again Natural David including in Master Foods. Lock, our bookings Pet team As Diesel, very strong Detroit Sennheiser, We achieved new customers, Balance gross QX.

solid collaborate the than Calzedonia and with with ASICS, of and to-date this managers enterprise level With terms positive improvement been is customers, to our business impact like account to our In team sales quarter-over-quarter expansions in of sign QX attributable directly existing we to growing our churn, targeted. QX. with continue The Part our to improvement service achieved customers respect was in rollout initiatives. completed has better of Geox.

clear. into pulled We retention trends trajectory are stems these behaviors. to reason growth. their survey we and growth, with in insights their over And improved are products of sustained optimistic XXXX. business about the we expansions, conducted. Consumers And before bookings, aren’t consumers speaking of our of they did buying recent way a all the U.S. as important with pleased interacting and are X,XXX drivers companies results are We another from shopping sustained gain

shopping need online these as and As and speed availability research factors that and survey do we This in their media the continue prior to key head to The brands to social strategies just is reinforce via also survey that. to purchases. more and products to into take plan than the pandemic changes making consumers focus on advantage to need permanent reinforced are confirms online reimagine season, holiday the of shipping positioned consumers those ChannelAdvisor more e-commerce channels. inventory

new and an their our released, priority. Let brands to remains platform enabling innovation achieve e-commerce transformation their accelerate have regarding now share me objectives we recently capabilities update digital

were earlier mid-XXXX One we is the XX to of customers our of where priorities adding to our that at at committed by end breadth innovation we supported XXXX. least end, more reach to significantly give access by of year, this to integrations consumers expanding our rapidly. compared additional and more To channels top

With the over XX globally. ChannelAdvisor addition now recent XXX new channels of supports integrations,

of ability online France help in support the Netherlands yet win. marketing and With early daily region, ChannelAdvisor workload Lord to for and Australia, our a great Republic, ball.com another to New and Belgium and expand Czech anticipate marketplaces. the to marketplace X future Denmark, more marketplaces already purchase-ready channels using planning reaching include CDON, Polish we marketplace brand clothing leading Belk, is France, but presence to on we and drop-ship integrations in Nordic Poland. has In nearly network Belgium, our X including brands we the go also the ChannelAdvisor, channel Taylor example goal helping We proposition and in to the staff a been within Netherlands, growth. accelerate with in & to their the months and This want first-party and release, ChannelAdvisor’s minimum. grow sales This IT, be GameStop. XX are is us why our international in and actively our Rakuten in Zalando, international words, the marketplaces the January achieve add will weeks excellent opportunities that sales connections, tight, value XX its unrivaled and offers ICONIC new reduce access Tatum, The resources fashion of launched than our consumers fast, would in our selected expertise never reach brand, are reinforces again how we need that further stronger. from is Germany, which belief XXXX. leading to This on and

for control In brand development Our products. order to to businesses designed empower product campaigns, content marketing showcases a give product enhance to where digital the consumer brands greater over also brands their and shopping experience, testing the conversion performing capability, A/B content. by efforts we Google customers can this increase Facebook. identifying new have ChannelAdvisor and on of the to content likelihood With product released support product best

enabling expand scout, after path the to launch, both represents for competitive selling for to includes enables to products. with the grow day the Network, just partners faster their consumers diversify network, looking channels, Commerce XX% expand product online product experience and Web network high-quality in-platform to landscape. highly newly easily channels stores engage including for weeks growing In access select channel for utilize seeing network retailers created new facilitates channels will of workflow our channel and searching more platform specifically facilitate reach a to e-commerce every ChannelAdvisor first and Complementing our the sides effect marketplaces, value retail commerce adding the for their This of channels, accelerates profile, customers brands clients this matching enabling the and reach. and our to integration brand brands ChannelAdvisor our the brands retailers XX-plus and Additionally, have of few assortment. an ensure the designed launched network their experience This preferred to of and reach, in e-commerce this and to XX% information opportunity active first release our partners. centralized latest channel to partners sharing believe network. by growth We across created and we’re and

Shoppable released our with social also brand Now to their This capability Self-Service path retailers. the define offering experience Buy a major Media our a We include that clients build powerful to on preferred called media in enables campaigns capability for product Interstitial. purchase and self-service a

outpace XXXX half While market, their to performance These and generate remain channel commerce upcoming revenue initiatives numerous and to summarize, empowering Based opportunity maximizing and that, the double-digit innovation time believe enhancements the going further they with we financial goals. now combined and our made self-service retail on we pass a help detailed in more in on can Buy of competition brands to To Rich? the provide capability Now forward. to multichannel Interstitial, their our partners. our us, to in brands QX, season it XXXX. holiday offered the we sustained platform this success product improves underway during strong margins With and the busy already beyond. continued have new customer for e-commerce across traffic at and performance. aimed execution, of on are for the update build improve We progress growth to we strong front positioned focused surpass tremendous Rich I’ll first

Rich Cornetta

outlook we our and start Day make recent attended presented, Beth, access capital our good our thanking those metrics website margins recording in including September. the through couldn’t of on M&A the allocation operational our you, received to of content financial and growth significant and And it, Thank EBITDA to least encourage support of who and amount revenue event. I morning, financial positive feedback to a all financial we Analyst to sustained framework, you our approach for XX% adjusted double-digit visit want company by who additional We everyone. long-term of at a to XXXX.

of increased from continued year consecutive line acceleration to from quarter our in quarter Following as the record revenue of XX% acceleration of another how last that brands, compared growth investments priorities. pleased the for fifth specifically over and revenue in of for investment for into executing rapid QX quarter the performance year-over-year. growth ago, we QX our growth our of third subscription QX more strong increased top represented well comparisons to face a strategic On cash top August, difficult continue throughout high we The range company against versus and results, total our XXXX, EBITDA highlights solid are to report subscription revenue ongoing quarter quarter QX, our of exceeded of cycle. end generation adjusted revenue in growth guidance specifically, the I’m we and another to momentum and revenue recognize the Even year, provided of revenue record record brands. with

the XX% $XX.X revenue. numbers year-over-year Total and and comps earlier, revenue dig million reached the third mentioned revenue another quarter, the $XX.X let’s despite quarter with for best I in a outlook. at our ever challenging deeper in little of was for $X.X revenue represents record variable QX. million quarter the for So our up into reached Subscription line generally third million

cohort, million brands we specific QX. details of record to revenue total for As our during achieved $XX.X

that customers. this success customer higher acquiring with of XXX has XX% by continue from increased and from over is brand roughly financial support total strategic working organization results. up over representing and organization XX% almost brands realized significantly see customers and sales revenue, remained our in from customer period. QX, record months, count cohort brands retaining during our points on our subscription our revenue is basis per revenue than million the year subscription and of The average with brands we prior also XX retail to is year expanding on previous new being $XX.X the and growing recognized Also, which we’ve We proves last our existing XX% and focus services net

remain than We of represent revenue XX% to of end greater confident by that brands continue the total will our XXXX.

on QX moving the margin million, generating of well Now at high end of of XX%. ahead $X.X of EBITDA million, outlook finished We adjusted to our EBITDA. adjusted $X.X an

operating have in maintaining still expenses steadily While been recent periods. healthy building margins,

incremental we’ve and in investments organization with in our generated as into reinvest in our goal retention as services XXXX, we back supporting accelerating we early financial innovation, well to incremental growth product model. made investments into as sales, the trend and long-term improving our customer further QX product, revenue in this we XXXX business expect our continue in of As the strategic

Free of pace bringing $XX.X first year. very of cash approximately $XX of an reaching Now sheet. to flow the generation year-to-date months year-over-year. million with cash had record the healthy cash solid We million, turning was cash X QX, total million increase fiscal balance in representing $XX the for and during a another $X to quarter and and again equivalents million sequentially a QX

levels, million our up driven strong a $X.X year-over-year by continued to revenue saw $X.X up sequentially record and bookings increase performance. million deferred also We again

financial outlook. our let’s So discuss

outlook million issuing revenue of EBITDA and QXs mentioned, forecasting between range in range in because enhanced to we of adjusted uncertainty For revenue a financial is are Also, wider between and of are forecasting. consistent range element with $X.X another previous $X.X challenging. XXXX, $XX.X constraints as that an mind little this and David variable revenue, quarter typically and million. practice supply the makes EBITDA GMV Keep the holiday our season adjusted $XX.X million chain a million of more adding fourth

last it’s that Prime our in comparing October when results, prior Day guidance Lastly, to mention to to occurred important QX year. year

similar recognize subscription revenue So we strong anticipated in target in a outlook and will now respect reflects year. we and growth continued revenue, to performance variable With to volumes this benefit teens. GMV the QX, upper our

our OpEx revenue subscription of wish you, that, at the also We in at in $X And team over QX our With revenue to now made the successful continue we’d confidence of model. year on behalf the years you prior increase sustainability are least like continued proud incremental closing, for and growth generated leadership our achievements we to in season. on healthy last of brands to David, To over we time. and open here have the expect growth thank as Beth, we for ChannelAdvisor, support. provides And have and holiday to entire the we families us financial the of you myself paid over strategic call questions. X all we a In your happy your operator, focus million investments XXXX. this financial the reinvest and by

Operator

line question from first Instructions] comes Sebastian Colin of Our the [Operator from Baird.

Your question please.

Colin Sebastian

next spend the start as pipeline the out you quantify you prudently, especially about enterprise been have might a I could pushed due morning, to online, the that the then between bit quarters? pipeline upside? revenue not of level talk beating the for you about you. Or dynamic? and but with and among about talk urgency bit, you Can somewhat EBITDA have prospects if bit mean, the little you investments Is to much in to shift the still businesses start everybody. or year platform. some companies? investments guess, a talk expectations guess, at a margins just and to And the first greater just off, have the of expected sort this I of want as given or year guys a secondly, I Thank Good smaller maybe brands the year, mix other Thanks.

David Spitz

of question. we continue to Hey, Colin, the is for the say can. things. One would I investments, hire think a couple we Yes, as thanks that as I on aggressively

you know, has this a hiring of challenging I think, in been, different for number companies. As environment

we continued of We’ve probably think where in in. terms be will approved bit expect that is there a But there some that terms growth the the drive our year of in very So investments of little to investments for us we’re effect things additional consistent next lag of a terms investing well. in we as hiring. quarter it initial last in

cases doesn’t. an and for So every through various what investments proposed and makes quarter, we go of analysis determine sense business what

lag So pipelines a cycle. it’s around investments long making combination a bit and we’re of that question little don’t sales On hiring. remain would a particularly robust. probably on effect a We pipeline, additional I of your say second have

roughly half sourced of So quarter. half deals, our closed and a within our deals probably are

a bit we So more demand would at pipeline it which interest know, that we XX-month have a us look our like say that to or more can focus. skew which, I necessarily brands, side, where whole our would I lot. tells is from I little think strong fit. global, as best to is the continue tends to say is enterprise-type key see solution you brands we and very But larger the X a that don’t

Rich Cornetta

this Colin, Rich. is

but mentioned more Just hiring that on extending what the fact to EBITDA I with into hiring. even your I focused my margins saying David comment remarks that importantly, anticipate that and one XXXX. prepared regards further was continue in far add in as thing to to trend QX, on we again as

to point, XXXX XXXX. but your the providing you fact expect are should on not we I to at our So into want focus investments do continue – to detailed information that investments on outlook early this continue

Colin Sebastian

Understood. very Alright. much Thanks guys.

Rich Cornetta

Colin. Thanks,

Operator

you. Thank

Needham. Reilly the from comes question next of from line Josh Our

please. question Your

Josh Reilly

quarter should guys. about impact just the Day December what Thanks, issue given then the year? generally by growth think volume are the having quarter. just comp variable Maybe And the versus June and the Prime in how your revenue year-over-year largest there starting guidance slowing to Congrats then XQ GMV last off, this on at implications the quarter Alright. platform? year we strong for

Rich Cornetta

Yes.

give more little that. bit a detail you to on happy So

if look you revenue. for outlook our at So

We have committed to high growth. subscription teens revenue

So variable if you variable at QX, with QX, to were in infer what revenue, so. that looking saw a decline or around revenue with XX% you consistent in

a relationship a not that tier So, start this revenue subscription during we a again Day David focus revenue on just we branch to Media the mentioned, have revenue also, products, tend factoring for higher into continue a are revenue their two our year his us. and us into in Brand Prime a with variable fact buy Shoppable Analytics, relationship fact being and is does remarks, have which not And cohort, contribution reasons, to variable to our a subscription occurring they prepared have therefore, that revenue less the financial one of of few component. growth with brands a position in QX product on estimates. over of And lesser our as stronger and has the concentration variable and variable

David Spitz

GMV to it’s tail. important long will thing emphasize to One I add is on that continue

in more point platform interesting Walmart you Zalando the give So, first. did, just GMV our than to actually on generated that so data an was October,

fairly aggregate, and in influence. becoming, in actually size are marketplaces long-tail significant these so And

indicate nice far as more even and have QX. some I we marketplaces this growth at little as to like muted a offsetting that Amazon go I eBay to would expect bit larger growth see long-tail. a that of point. It’s And can as higher as from continue So, really that’s the trend that into

Josh Reilly

a maybe And just follow-up Okay. question. Great. then

You this a to curious touched on some I am get but bit, more detail.

You average If mix pandemic, fairly terms increasing look adding growth balanced think at should well? Is years? driving was brand we post in maintaining that – the going of forward how it the per couple of revenue about new the of in you that customers over next from you growth customer revenue quarter. anticipate said what double-digit versus as

Rich Cornetta

Yes.

David Spitz

think I Yes, so.

If coming you a half sales fluctuates from that over least expansions bookings is But the expect. new at next. think our and to I the one obviously, from logos our to medium-term, activity, is roughly it coming look at probably half fair brand quarter pattern of

Josh Reilly

Great. guys. Thank Okay. you,

David Spitz

Thank you.

Operator

Thank you.

the Our William line next from question of Pfau Matt from comes Blair.

please. Your question

Matt Pfau

ask thanks and supply and my of first Yes. new that Is terms to sell impacting impact challenges for wanted Nice how taking your creating customers? chain on or questions. end? on I to in results it was ability that to distractions

David Spitz

Hey compliment. Matt. the Thanks for

think when right. are an velocity. this sales pipeline and I to seen prepare customers it’s of effect in for terms to I haven’t year, mean we really of I year, selling at time next

to So, that live are likely we most QX forward. closed in some ultimately, of the customers in go time QX and they looking are

by getting focus and products strategic distracted I they of investments. of doesn’t customers somewhat containers making that the are from to have got cost the their on places stop right our and some am them to they shipping are so sure sure – But and inventory. that So making sure continuing

an So, regard. really we seen that in haven’t impact

Matt Pfau

chain, supply last if wondering you that your due long-tail marketplace supply shifting about expect of to had shift and how a do Did another to versus supply to is a year different also kind to that but were one chain impact you from just last would you out? what some Got think maybe challenges chain you people are compare or where getting the end it. this year, more situation, expecting was this it there consumer. perhaps on goods were of channels what mile we these the on And the year to And see those of evened issues?

David Spitz

and question, much has about is a been it’s last to months. the that’s great answer really – so speculative Yes, XX really difficult because predict my

is year last-mile very Amazon I this logistics and year, even think very, well difference a last fulfillment that from think perspective their and one is prepared big versus I fulfillment.

So, brands get available while marketplaces. inventory and individual sellers different on may struggling be to

we from infrastructure I has really I for I bit reliably kind remarking those any time think XX last built maybe look probably And where here Last buy because see get year, lot holidays. ultimately months can less a they – U.S. benefit growth I is little amazing. Amazon products in for the the over the so started U.S., to that of I going are in for were think really of the I can in of consumers that outside the think seasonal than shift and maybe pretty we will of time long-tail. on A that the know

disruptions disruptions to bet shipping supply is the my their larger channels capacity supply larger to to have extent the flexibility So, brands, the I and retailers, guess benefit chain larger or influence the the chain. and are probably there muscle meaningful who accrues

Matt Pfau

it. That’s appreciate it. a Thanks for it me. Got guys. I lot

David Spitz

Thank you, Matt.

Operator

you. Thank

of Our the Riley. comes from B. next Zach from Cummins question line

Zach Cummins

Yes. one Hi, thanks towards strong guess Beth. taking Congrats questions. my for and quarter first on geared I is to my morning. the good going be

adding you if brand In get those starting needle these of it’s that are channels, your terms channels with new and really to from customers. up at that the now from the to are live a move introduced them some of you have you with the your perspective, of perspective wanted of connecting just of target pacing new ahead year, start I the any bookings and

Beth Segovia

Yes.

So, to say see are activity. of lot we I would a starting

year takes obviously, the on a of which we it to up – some couple for this been we quarters, really live with of running, So, and time get integrations first and success, of tested right. have focused bit the

us channels. month a So, energized. And of which of gets really campaign some we focused we just to in really ahead adoption last launched across the start key those that driving are pace,

we year, we So, expansion are adoption, that lot going a right. next and are to of see anticipating

customers David locked are on they as that going will on and and to holiday, adoption so get be for eight through the of and they or loaded are are year. QX mentioned, for we the more now channels, as next So, holiday. next we see occur And weeks

excited So, we prospects. are the very about

Zach Cummins

of brand’s steps anticipate other brands. kind fully out of as more of you that base? for the wanting And your question It program Understood. seems with is just for my first that are launch. enterprise to brands really then continue of your that’s of customer cohort out it you rolled What do to service next level expand like around you to now

Beth Segovia

Yes.

right focus on our promise. is delivering think I the So, now

shared new and we teams. roles customers a offering few had that we that So, we expanded have are

we new so our are providing demonstrating And with customers, deliverables. new interactions

integrations their those. and assessing are We optimizing

a new program. really with providing our that are the customers cross-channel way, strategies are deeper in going so in We

So, that’s where moment. we are focused in the

about the would feedback focused the We that in suspect I resources, we are are on head talking operational that coverage, But next customers is how into fully positive. year. very additional having from are supporting And way. and scale teams new feeling those more it They doing to program our will and as we really additional in customers customers, reach that moment, in consider a expertise. we mid-year we more out

the And on moment in a promise. delivering so focused we on are

Zach Cummins

Thanks and Well. the taking congrats Understood. questions for my again strong quarter. on

Beth Segovia

Thank you, Zach.

Operator

you. Thank

D.A. next Our question from from comes Thomas the Forte of line Davidson.

please. question Your

Thomas Forte

Great. and One on also impressive and one follow-up question congrats quarter. very a

third been quarter second third what similar and the the penetration your fourth and and happened that have into to to would quarter, in Amazon last slowed e-commerce you think we stores how e-commerce the year? year, I vaccinated Shopify about to thought on suggested and that next quarter returned quarter online comments physical therefore, the should appreciate So versus consumers many who in in high-level

David Spitz

consistent to speak. year David. so in as third the Hi we quarter the a growth things Obviously, pacing in when saw the QX. Tom, were year-over-year comments. than just this needle, saw is growth we fairly for lower Thanks saw We last

increasing we about So Amazon, long-tail we that saw. eBay the felt beyond emphasize pretty good of again, – for marketplaces the Walmart and but growth And us. of will that importance I GMV

continue. And to so dynamic expect that I

traditional But than to visit the going more kind expect we lot are did we year last I some doubt they pandemic, of that in I don’t during don’t pretty decline that look where reversal trends see I or the out e-commerce they far durable. And at will stores course. from sit, travel saw a as go so more of and more, that So, penetration. all retail of people

I And quarter. the I so fourth we to are seen exceed think this that is going watermark continue last to a year. will that achieved And my continue that, – year. of think new anticipation we kind through high far, us we have

Thomas Forte

are brands, next question, for what this opportunity my follow-up year? sustained have your with strength the Great. had on And year price your then and in take you with thoughts to

David Spitz

price about talking are solution? of our You

Thomas Forte

Yes.

David Spitz

Yes.

a are are financial cost business, pressures right. We shipping at of in the And always dynamics facing customers looking it’s our our of whether lot areas, costs, other costs, etcetera. labor

to be And good partners want thoughtful. to be want customers. we with We so our

are are but in think But we And looking that us position in space I that say good flexibility regard. something also our that we So, we to make that we as customers. that’s gives for the would I our at. partners a leader haven’t sure want always some anything, being announced

Thomas Forte

questions. my for Thanks Great. taking

David Spitz

Thank you, Tom.

Operator

to I question-and-answer back This remarks. further conclude hand the of Garrabrant any Raiford program you. session the like Thank program. to today’s would for does

Raiford Garrabrant

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

Operator

This your program. does Thank for in conclude you, ladies today’s the and gentlemen, participation conference.

You may day. Good now disconnect.

ChannelAdvisor (ECOM) 9 Nov 212021 Q3 Earnings call transcript