The company plans to use the funds to expand internationally.
A continued shift from offline to online retail sales helped drive first quarter revenue up 13% to $60.5 million at CyberSource, a provider of online payment and risk management technology and services, chairman and CEO Bill McKiernan says.
A continued shift from offline to online retail sales helped drive CyberSource Corp.’s revenue up 13% to $60.5 million for the first quarter ended March 31, up from $53.4 million a year ago, chairman and CEO Bill McKiernan says. CyberSource is a provider of online payment and risk management technology and services.
CyberSource processed a record 533 million billable transactions during Q1, up 24% from the same period last year, as the value of processed transactions rose 4% to $27.7 billion, the company says. It also signed a record number of 31,500 new customers in the first quarter, including retailers Brookstone, Columbia Sportswear USA, Guess Europe and Virgin Mobile USA, bringing its total customer base to 262,000 active customers, it says.
"Our strong results this quarter reflect our continued penetration of the small business market, our successful expansion internationally and the relative health of the e-commerce market,” McKiernan says. “While consumers may be cutting back their overall spending, they continue to shift their purchasing online.”
The company’s Q1 GAAP net income rose 87.6% to $1 million, up from $533,000 a year ago, CyberSource says. On a non-GAAP basis, net income rose 9% to $12.6 million from $11.5 million. The non-GAAP figures exclude stock-based compensation expense, other expenses related to tax and asset depreciation, and non-recurring expenses related to property leases and other items.
In Europe, CyberSource says it also processed a record 136.8 million transactions in Q1, up 59% from a year ago. It said its European business, which generates revenue from customers based outside of the U.S., accounted for about 6% of total Q1 revenue.
The company also added 1,100 global acquiring customers in Q1, bringing its total number of acquiring customers to 5,500. It generated $19 million in Q1 global acquiring revenue, up 11% from a year ago. Global acquiring revenue, which is separate from per-transaction processing fees, refers to fees CyberSource charges retailer clients in exchange for assuming the risk that an online merchant will go out of business before shipping a customer’s order.