22 June 2010
EventHorizon1984
AuctionBytes posted an article titled "Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay", where a comment was made regarding ChannelAdvisor's revenues.
ChannelAdvisor INC responded to that comment.
Update - More information from ChannelAdvisor and confirmation from eBay:
eBay confirms that Michael Jones will be joining the company as Vice President of North American Business Development for eBay Marketplaces. A ChannelAdvisor spokesperson said he has not yet left the company; he's actively working in the office until June 30th, and, she said:
"Your source indicated that MJ was "consistently failing to reach revenue targets," yet we've reported record growth for ChannelAdvisor and its customers in our past three quarters: link, link, link.
"In the interest of full disclosure, I think you owe it to your readers to let them know that that blog post was written by a former ChannelAdvisor employee who now works for a competitor, Mercent."
The ChannelAdvisor INC spokesperson may be the contact person listed in the Press Releases.
Contact:
Delisa Reavis
ChannelAdvisor
[email protected]
919.636.0659
We did a little research, and posted a comment to ChannelAdvisor's response.
> ''yet we've reported record growth for ChannelAdvisor and its customers in our past three quarters: link, link, link.''
These are standard vacuous Press Releases. Of course those Press Releases avoid answering the question of ''revenue targets.''
Press Release #1 talks about the growth of ChannelAdvisor INC customers during that quarter. But there is not one mention of ChannelAdvisor INC revenue during that quarter.
Press Release #2 has ChannelAdvisor INC CEO Scot Wingo stating, ''For ChannelAdvisor, 2009 was a fantastic and transformative year as we achieved our profitability goal of becoming EBITDA positive''. Of course there is no mention of any objective dollar amount. And what of ''EBITDA''?
ChannelAdvisor INC Press Release #3 makes the same claim, ''for the 12 months ending September, 2009, ChannelAdvisor achieved for the first time in company history a full year of positive EBIDTA '', but there is more. Here's the rest of the quote following the ''positive EBIDTA'': ''(earnings before interest, depreciation, tax and amortization.'' Incidentally EBIDTA stands for Earnings Before Interest, Taxes, Depreciation and Amortization.
If earnings are ''positive'' BEFORE taking out expenses, one has to wonder if earnings would remain ''positive'' AFTER expenses. The ChannelAdvisor INC Press Release is woefully silent.
Perhaps earnings AFTER expenses misses the ''revenue target''? Or perhaps something else?
There are interesting pieces of data that ChannelAdvisor INC provides in it's Press Releases, that might explain whether ''revenue targets'' are being hit or missed. At the bottom of each of these Press Releases:
Press Release #1 dated April 26, 2010:
''In 2009, ChannelAdvisor managed $2.6 billion in gross merchandise value (GMV)''
Press Release #2 dated January 20, 2010:
''In 2009, ChannelAdvisor managed $2.6 billion in gross merchandise value (GMV)''
Press Release #3 dated November 3, 2009:
''In 2008, ChannelAdvisor managed over $2.6 billion in gross merchandise value (GMV)''
If you look at ChannelAdvisor INC Press Release dated January 23, 2009 (
http://www.channeladvisor.com/news/2009/pr090123.html ), you will find:
* ''for the full year, ChannelAdvisor recorded GMV of $2.6 billion.''
Fascinating. ZERO GMV growth, as stated by ChannelAdvisor INC, between 2008 and 2009. To state the obvious, ChannelAdvisor INC derives some revenue by assessing a fee on sales (percentage of GMV).
How much does ChannelAdvisor INC make on that ''$2.6 billion'' From It's Customers? According to that Press Release, ''for the full year, ChannelAdvisor recorded revenue of over $35 million.''
Let's put that amount in perspective.
eBay seller Buy.com (bought by Rakuten), who is also a ChannelAdvisor INC customer, earlier this year had 30 day gross sales of $2.5 million. Or using a very very rough calculation, that could be $30 million in sales for a year.
Here's what you'll find in another ChannelAdvisor INC Press Release dated September 04, 2008:
''ChannelAdvisor, the leading provider of e-commerce channel management solutions, today announced it has received an additional $20 million in funding to accelerate its growth.''
When you have ''$35 million'' ''recorded revenue'' (Net or Gross?), a $20 million cash infusion (with eBay as one of the investors) is a significant amount.
Maybe this cash infusion did not produce an appropriate increase in revenue, thereby missing ''revenue targets''?
Hmmm, maybe these press releases are not so vacuous after all.
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''but like a poor marksman, you keep missing the target''
Admiral James T. Kirk, Star Trek The Wrath of Khan (1982)
It was rather sloppy of us to forget the link to the September 04, 2008 ChannelAdvisor INC Press Release.
That Press Release is titled "CHANNELADVISOR SECURES $20 MILLION IN FUNDING" and this is the link, http://www.channeladvisor.com/news/2008/pr080904.html to that Press Release.
And the tale of ChannelAdvisor INC competitor Mercent INC? According to their February 2, 2010 Press Release:
Of course there are no dollar amounts attached to their percentages.
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"Michael Jones - Chief Revenue Officer
As the Chief Revenue Officer, Michael is responsible for all of ChannelAdvisor’s revenue, corporate development and acquisition strategies."
ChannelAdvisor INC, 22 June 2010
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eBay INC Stock Price During CEO John Donahoe's Tenure
30 June 2010
EventHorizon1984
While much is said about eBay INC's stock, there is one fact that's rarely talked about. According to eBay INC's official investor page, in the matter of eBay INC stock dividends:
Which means for the average investor to materially benefit from eBay INC stock, they must sell and/or buy the stock. In other words, 'buy low, sell high', short, et al.
Many analysts (who make money on fees You pay them) give the advice 'eBay stock is a long term investment.' Is this stale and cliche advice a bad thing?
Depends on when you make the purchase, and your definition of 'long term.'
To show the short (no pun intended) version of eBay INC stock variation, presented below are eBay INC stock prices on days of note, during eBay CEO John Donahoe's watch. Stock prices are taken at close of market (end of day).
Additionally you will find sets of five stock prices clustered around the dates of eBay INC's quarterly Earnings Call. The first two are the relative low or high value of eBay stock, prior to eBay's Earning Call. The third is the eBay stock price on the day of the Earnings Call. The the fourth and fifth are the relative low or high values of eBay stock after the Earnings Call.
Numbers and details relating to eBay INC provided through Yahoo! Finance and Seeking Alpha.
eBay INC Stock Price - 31 March 2008 to 30 June 2010.
29.84 - 31 March 2008, end of Q1 2008, John Donahoe becomes eBay CEO32.94 - 4 April 2008, Highest stock price under John Donahoe
27.33 - 30 June 2008, end of Q2 2008
28.18 - 10 July 2008
26.89 - 15 July 2008
28.10 - 16 July 2008, eBay Q2 2008 Earnings Call
23.98 - 18 July 2008
25.38 - 23 July 2008
22.38 - 30 September 2008, end of Q3 2008
15.96 - 9 October 2008
18.10 - 13 October 2008
15.33 - 15 October 2008, eBay Q3 2008 Earnings Call
14.97 - 16 October 2008
15.47 - 20 October 2008
13.96 - 31 December 2008, end of Q4 2008
13.44 - 15 January 2009
12.55 - 20 January 2009
13.28 - 21 January 2009, eBay Q4 2008 Earnings Call
11.67 - 22 January 2009
12.00 - 23 January 2009
10.27 - 9 March 2009, Lowest stock price under John Donahoe
12.56 - 31 March 2009, end of Q1 2009
14.41 - 16 April 2009
14.06 - 20 April 2009
14.78 - 22 April 2009, eBay Q1 2009 Earnings Call
16.78 - 24 April 2008
16.20 - 28 April 2008
17.13 - 30 June 2009, end of Q2 2009
18.58 - 16 July 2009
18.55 - 17 July 2009
19.45 - 22 July 2009, eBay Q2 2009 Earnings Call
21.52 - 23 July 2009
21.24 - 24 July 2009
23.60 - 30 September 2009, end of Q3 2009
24.49 - 16 October 2009
25.15 - 19 October 2009
25.03 - 21 October 2009, eBay Q3 2009 Earnings Call
22.75 - 28 October 2009
23.01 - 29 October 2009
23.53 - 31 December 2009, end of Q4 2009
Volume 5,990,600
23.26 - 19 January 2010
22.23 - 20 January 2010
24.13 - 21 January 2010, eBay Q4 2009 Earnings Call
23.58 - 22 January 2010
24.07 - 26 January 2010
26.97 - 31 March 2010, end of Q1 2010
Volume 8,048,100
26.32 - 19 April 2010
26.40 - 20 April 2010
26.29 - 21 April 2010, eBay Q1 2010 Earnings Call
24.55 - 23 April 2010
24.56 - 26 April 2010
19.61 - 30 June 2010, end of Q2 2010
Finally an overview of eBay stock prices during eBay CEO John Donahoe's current reign.
31 March 2010 - 25 June 2010
To recap:
What if you heeded the call of your analyst to buy eBay stock on 31 March 2008 as a long term investment?
As of 30 June 2010, you lost 34% of your investment. And of course the fees you paid your analyst for such generous advice.
eBay INC's next Earnings Call is scheduled for 21 July 2010.
Where will eBay's stock price be then?
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"Longer-term, the pillars of the Internet, companies like eBay and Yahoo! will continue to outperform"
67.31 - 5 March 2004, eBay INC stock price not adjusted for stock split.Youssef Squali, 5 March 2004
34.65 - 5 March 2004, eBay INC stock price adjusted for stock split.
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