The two firms will become independent publicly traded companies in 2015. The move follows pressure from investor Carl Icahn to spin off the payments ...
The e-commerce service provider’s loss nearly doubles to $18.6 million.
GSI Commerce Inc., which sells e-commerce and online marketing technology and services to more than 200 retailers, today reported that revenues increased 49.3% in the third quarter. The company’s net loss nearly doubled to $18.6 million.
For the third quarter ended Oct. 2, GSI reported:
• Net revenue increased to $284.1 million, up 49.3% from $190.3 million for the same period last year.
• Net revenue from product sales increased to $153.2 million, up 68.8% from $90.8 million last year.
• Net revenue from service fees increased to $130.9 million, up 31.6% from $99.5 million.
• Costs and expenses increased to $304.4 million, up 52% from $200.2 million last year.
• Net loss increased to $18.6 million, up 97.9% from $9.4 million last year.
“Important progress on strategic initiatives made during the quarter included the continued enhancements to our e-commerce technology and payments platform, the launching of several international e-commerce stores for key clients and the continued build out of management teams for marketing services and Rue La La,” says Michael Rubin, GSI’s chairman and CEO, referencing a private sale site that GSI owns. “In addition, after 12 months of development and start up effort, we soft launched ShopRunner in early October.” ShopRunner is a free shipping and marketplace program that is competing against Amazon.com Inc.
For the nine months ended Oct. 2, GSI reported:
• Net revenue increased to $821.0 million, up 43% from $574.0 million for the same period last year.
• Net revenue from product sales increased to $458.7 million, up 59.2% from $288.2 million last year.
• Net revenue from service fees increased to $362.3 million, up 26.8% from $285.8 million.
• Costs and expenses increased to $876.7 million, up 43.6% from $610.7 million last year.
• Net loss increased to $52.5 million, up 51.7% from $34.6 million last year.