ChannelAdvisor Announces Long-term Financial Targets, Share Repurchase Authorization
2025 Revenue targeted to exceed $250 million with adjusted EBITDA in excess of $50 million
Board of Directors authorizes opportunistic share repurchases of up to $25 million
ChannelAdvisor Corporation, a leading provider of cloud-based e-commerce solutions, today announced long-term financial targets and authorization by its Board of Directors of a share repurchase program. ChannelAdvisor targets revenue of at least $250 million and adjusted EBITDA of at least $50 million for its year ending December 31, 2025. Adjusted EBITDA is a non-GAAP financial measure that excludes depreciation, amortization, income tax (benefit) expense, net interest expense, stock-based compensation expense, changes in fair value of acquisition-related contingent consideration and one-time transaction costs associated with acquisitions.
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Additionally, the repurchase program authorized by the Board of Directors allows for the repurchase of up to $25 million worth of shares of ChannelAdvisor stock through August 2022. This time frame can also be extended or shortened by the Board of Directors. Share purchases will be executed opportunistically, with the aim of maximizing return on investment. Repurchases, if any, will be made from time-to-time on the open market at prevailing prices or in negotiated transactions off the market.
The company will provide more details regarding its financial strategy and capital allocation framework at its previously-announced Virtual Analyst Day on September 17, 2021 at 9:00 a.m. ET.
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“In advance of tomorrow’s Virtual Analyst Day, we’re excited to share our long-term plan, which targets sustained double-digit revenue growth combined with strong margins and cash flow”, stated David Spitz, ChannelAdvisor’s chief executive officer. “We’re also pleased to announce that our Board of Directors has authorized us to repurchase up to $25 million of our shares. We look forward to discussing our long-term vision, value creation path and capital allocation strategy at our analyst day tomorrow. We enjoy a strong financial model, solid unit economics, and a leadership position in a large and growing market, and as we enter our third decade of serving customers, we believe now more than ever, this is our time.”
