ChannelAdvisor Registers 8% Revenue Growth In Q1 Backed By Subscription Revenue

• ChannelAdvisor Corp (NYSE:ECOM) reported first-quarter FY22 revenue growth of 8% year-on-year to $42.3 million, marginally beating the consensus of $42.1 million.
• Subscription revenue increased 17% Y/Y. Brands' revenue climbed 32%, and Brands subscription revenue grew 36%.
• The non-GAAP gross margin contracted 330 bps to 75.8%.
• The adjusted EBITDA margin contracted 400 bps to 19%.
• ChannelAdvisor held $106.9 million in cash and equivalents and generated $6 million in free cash flow.
• EPS of $0.06 declined from $0.18 last year.
• CEO David Spitz said, "Subscription revenue performed particularly well, increasing 17% year-over-year. This is a direct result of our brands-focused strategy coupled with solid execution, despite slowing e-commerce growth and a more challenging macro environment as we emerge from COVID."
• Outlook: ChannelAdvisor sees Q2 revenue of $42.5 million - $43.0 million versus the consensus of $43.89 million.
• ChannelAdvisor sees FY22 revenue of $177.0 million - $180.0 million against the consensus of $183.03 million.
• Price Action: ECOM shares closed lower by 6.22% at $13.71 on Thursday.