ChannelAdvisor Corporation (NYSE:ECOM) Q4 2018 Earnings Conference Call Transcript

Feb 13, 2019 • 08:00 am ET


ChannelAdvisor Corporation (NYSE:ECOM) Q4 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen. Welcome to the ChannelAdvisor Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later there will be a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Traci Mangini. Ma'am, you may begin.

Traci Mangini

Thank you. Good morning, and welcome to ChannelAdvisor's conference call for the fourth quarter 2018. My name is Traci Mangini, Director, Investor Relations, and with me on the call today are David Spitz, ChannelAdvisor's Chief Executive Officer, and Mark Cook, ChannelAdvisor's Chief Financial Officer.

This morning we issued a press release with details on our fourth quarter and 2018 performance as well as our outlook for the first quarter and full year 2019. This press release can be accessed on the Investor Relations section of our website at In addition, this call is being recorded and a replay will be available after the conclusion of the call.

During today's call we will make statements related to our business that may be considered forward-looking under federal securities laws. These statements reflect our good -- our views only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. These risks are summarized in the press release that we issued today. For further discussion of the material risks and other important factors that could affect our actual results, please refer to those contained in our most recent Form 10-K or Form 10-Q, as well as other filings which are available on the SEC website at

During the course of today's call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA, which excludes depreciation, amortization, income tax expense, interest, stock based compensation expense, non-recurring severance and related costs due to the reorganization of our China operations in 2018 and a one-time charge for voluntary disclosure agreements related to sales taxes in 2017.

Our press release that we issued today includes GAAP to non-GAAP reconciliations for gross profit, gross margin, operating expenses, operating loss, operating margin, adjusted EBITDA, non-GAAP net loss and free cash flow. We also provide a GAAP to non-GAAP reconciliation schedule in our supplemental financial presentation posted in the Investor Relations section of our website at In addition to this reconciliation schedule, this presentation now includes supplemental financial information and operational metrics, which may be referenced on this call.

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