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GSI reports $750 million in 2007 revenue and aims for $1 billion in 2008
The e-commerce platform provider’s projections include revenue from three companies acquired in 2007, including e-mail service provider e-Dialog. The company says ongoing growth in e-commerce should insulate GSI from any downturn in consumer spending.
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E-commerce platform provider GSI Commerce Inc. has reported 2007 revenue growth of 23% to $750.0 million from $609.6 million, and projects 2008 revenue of $1 billion.
Noting that he had fielded many questions from investors about the potential impact on GSI of a downturn in consumer spending, chief financial officer Michel R. Conn told analysts this week that GSI expects to continue to grow along with e-commerce. “The secular growth trend in e-commerce and interactive marketing services and our ability to grow organically act as good insulation from overall economic trends,” he said.
GSI’s 2008 projections include the revenue contributions of three companies acquired in 2007: competing e-commerce platform provider Accretive Commerce, UK-based fulfillment and customer service company Zendor and e-mail service provider e-Dialog Inc. The $157 million acquisition of e-Dialog closed this week.
GSI bought e-Dialog in order to better serve its clients, who increasingly want not only e-commerce services but also help in interactive marketing and multi-channel retailing, said CEO Michael G. Rubin. He said GSI likely would make more acquisitions, but that they would tend to be smaller than the e-Dialog deal. Seven of Accretive Commerce’s 14 retail clients have renewed or extended their deals with GSI since the acquisition last year, Rubin said.
For all of 2007, GSI reported income from operations decreased 49% to $4.9 million from $9.6 million in 2006. Net income decreased to $3 million from $53.7 million in 2006; the 2006 figure included a tax benefit of $43.7 million.
The company projects a 33% increase in 2008 revenue to $1 billion and income from operations in the range of $3 million to $6 million. Excluding such items as stock-based compensation, depreciation and acquisition-related integration expenses, GSI projects operating income of between $80 million and $83 million.
For the first quarter of 2008, the company projects net revenue of $188 million to $193 million and an operating loss of between $18 million and $19 million.
Based in King of Prussia, PA, outside of Philadelphia, GSI operates e-commerce sites for some 85 retailers.