 Revenue Growth of 17 on a YY Basis Best Since Fourth Quarter 2015 Variable Revenue Increased 89 on a YY Basis Adjusted EBITDA Margin More than Tripled on a YY Basis to 31 Cash Increased 8 Million Sequentially to 64 MillionRESEARCH TRIANGLE PARK, N.C., Aug. 06, 2020 GLOBE NEWSWIRE -- ChannelAdvisor Corporation NYSE: ECOM, a leading provider of cloud-based e-commerce solutions that enable brands and retailers to increase global sales, today reported financial results for the quarter ended June 30, 2020.Our second quarter results were exceptional, with record revenues and record adjusted EBITDA both substantially exceeding our original guidance for the quarter, said David Spitz, ChannelAdvisors chief executive officer. 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. Continued expense discipline and the scalability of our business model contributed to a significant improvement in profitability and cash flow as well. 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.Second Quarter 2020 Financial Results Revenue: Total revenue was 37.4 million for the second quarter 2020, an increase of 17.3 from the year-ago period. On a trailing twelve month basis, brands revenue continued to expand for the second quarter 2020 to a new high of 31.1 of total revenue. Variable revenues were 11.7 million, or 31.4 of total revenue for the second quarter 2020, compared with 6.2 million, or 19.5 of total revenue for the year-ago period. Fixed subscription revenues were 25.7 million, or 68.6 of total revenue for the second quarter 2020, compared with 25.7 million, or 80.5 of total revenue for the year-ago period. Gross Profit: GAAP gross profit was 30.4 million, representing a 81.2 gross margin for the second quarter 2020, compared with 24.8 million and 77.8, respectively, for the year-ago period. Non-GAAP gross profit was 30.6 million, representing a 81.8 non-GAAP gross margin for the second quarter 2020, compared with 25.0 million and 78.4, respectively, for the year-ago period. For a description of non-GAAP gross profit, non-GAAP gross margin and other non-GAAP measures included in this press release, including their potential limitations, see Non-GAAP Financial Measures below. Net Income Loss: GAAP net income was 7.0 million for the second quarter 2020, compared with GAAP net loss of 1.3 million for the year-ago period. GAAP net income per diluted share was 0.24 based on 29.7 million diluted weighted average shares outstanding for the second quarter 2020, compared with GAAP net loss of 0.05 per diluted share based on 27.9 million diluted weighted average shares outstanding for the year-ago period. Non-GAAP net income was 9.8 million for the second quarter 2020, compared with non-GAAP net income of 1.5 million for the year-ago period. Non-GAAP net income per diluted share was 0.33 based on 29.7 million diluted weighted average shares outstanding for the second quarter 2020, compared with non-GAAP net income per diluted share of 0.05 based on 27.9 million diluted weighted average shares outstanding for the year-ago period. Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was 11.6 million for the second quarter 2020, compared with 3.0 million for the year-ago period. Adjusted EBITDA margin, which is adjusted EBITDA divided by revenue, was 30.9 for the second quarter 2020, compared with 9.4 for the year-ago period. Adjusted EBITDA for the twelve months ended June 30, 2020 totaled 32.6 million. Cash: Cash and cash equivalents totaled 63.9 million as of June 30, 2020, compared with 51.8 million as of December 31, 2019. Cash generated from operations was 13.5 million for the six months ended June 30, 2020, compared with 4.5 million for the year-ago period. Free cash flow, a non-GAAP measure, was 11.5 million for the six months ended June 30, 2020, compared with 3.0 million for the year-ago period.Recent Business Highlights Acquisition of BlueBoard: Acquired BlueBoard, a leading e-commerce analytics company. Headquartered in Paris, France, BlueBoard helps leading global brands such as LOreal, Clarins, and Logitech gain a competitive advantage on their e-commerce channels with actionable insights into how their products are performing across thousands of retailer websites and marketplaces. By acquiring BlueBoard, ChannelAdvisor continues to enhance its capabilities for brands seeking to accelerate e-commerce growth. Revolving Credit Facility: Established a 25.0 million revolving credit facility that is available until August 5, 2023 for general corporate purposes and strategic initiatives. Additionally, the company may request increases to the facility provided that the aggregate amount of such increases during the term does not exceed 10.0 million. Diversity, Equity Inclusion: In response to recent external events, ChannelAdvisor has formed a Diversity, Equity and Inclusion DEI task force tasked with five key DEI objectives for the company: driving awareness, accelerating opportunity, improving access, advocacy, and accountability. We are proud of our long history of inclusion and our merit-based culture, but also believe there is more work to do to promote DEI internally and externally. ChannelAdvisor Starter Edition General Availability: Made ChannelAdvisor Starter Edition generally available with our strategic launch partner, ShipStation. ChannelAdvisor Starter Edition is a solution designed to help small-to-medium-sized merchants streamline their marketplace operations and expand to new channels. Support for New Selling Channels: Added to its leading network of marketplaces by expanding support for Afound ATDE in addition to offering new integrations with Atlas for Men UK, ComEd US, Galaxus CH, OfferUp US, and Shop Premium Outlet US. New Dropship Integrations: For US-based sellers that need help streamlining their dropship operations, ChannelAdvisor now offers support for first-party integrations with Boscov US, Dollar General US, Nautica US, Kohls US and Staples US. Enhanced Advertising Support: Brands and retailers that advertise on Amazon can now easily evaluate and eliminate low-performing sponsored campaigns with ChannelAdvisors new Ad Performance Rules for Amazon Advertising. Advertisers can set custom parameters for each campaign, allowing them to pause underperforming ads automatically. This additional layer of automation helps drive ad spend efficiency and saves time for advertisers. Customer Details: ChannelAdvisor recently added notable new customers including Tempur-Sealy, HUGO BOSS and Bushnell, and expanded its relationship with ASICS.Financial OutlookBased on the information available as of today, ChannelAdvisor is issuing guidance for its third quarter 2020 but is not issuing guidance for the full year 2020.in millionsQ3 2020 Revenue34.0 floor Adjusted EBITDA6.5 floor Stock-based Compensation Expense2.5 Weighted Average Shares Outstanding 28.9 Refer to the Adjusted EBITDA Guidance Reconciliation table included with the financial tables at the end of this release for the reconciliation to the most comparable GAAP financial measure.Conference Call InformationWhat:ChannelAdvisor Second Quarter 2020 Financial Results Conference Call When:Thursday, August 6, 2020 Time:8:00 a.m. ET Live Call:855 638-4821, Passcode 2685276, Toll free 704 288-0612, Passcode 2685276, Toll Webcast: live and replay Non-GAAP Financial MeasuresThis press release contains the following non-GAAP financial measures: adjusted EBITDA and adjusted EBITDA margin, free cash flow, non-GAAP gross profit and non-GAAP gross margin. Adjusted EBITDA and adjusted EBITDA margin exclude depreciation, amortization, income tax expense, net interest expense, stock-based compensation expense and for 2020 only, acquisition costs for the acquisition of BlueBoard. Free cash flow is cash flow from operations, reduced by purchases of property and equipment and payment of software development costs. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense.ChannelAdvisor believes that these non-GAAP measures of financial results provide useful information to management and investors relating to ChannelAdvisors financial condition and results of operations. The companys management uses these non-GAAP measures to compare the companys performance to that of prior periods for trend analyses, and for budgeting and planning purposes. The company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the companys financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making.Management of the company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in the companys financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with GAAP results. 