The newly released annual look at the digital world from online and mobile measurement firm comScore makes it quite clear that retailers better be ...
But acquisition activity costs widen its operating losses by 116%.
GSI Commerce Inc., a provider of e-commerce and online marketing technology and services to more than 200 retailers including Toys ‘R’ Us Inc. and Timberland Co., said revenue rose 18.7% to $323.5 million for the first quarter ended April 2, up from $272.6 million in the year-earlier period.
The company’s acquisition activity, however, resulted in a 116.3% widening of its Q1 operating loss to $27.9 million from $12.9 million a year earlier, as its net loss expanded 67.9% to $13.6 million from $8.1 million.
GSI says those costs have included $7.3 million related to GSI’s pending acquisition by eBay Inc., $3.5 million from GSI’s acquisition of sports gear retailer Fanatics Inc. and $3.3 million in earn-out expenses tied to its 2010 acquisition of marketing technology and services company FetchBack Inc. Earn-out expenses are typically paid to former owners if an acquired company meets a certain level of financial performance.
GSI also reported for Q1:
● Non-GAAP income from operations, which GSI refers to as NGIO, fell 14.9% to $14.8 million from $17.4 million. GAAP stands for generally accepted accounting principles; non-GAAP figures do not include unusual costs such as GSI’s recent acquisition-related expenses.
● Core NGIO, which entails GSI’s global e-commerce and global marketing services and corporate overhead, rose 4.3% year over year to $19.3 million from $18.5 million;
● Emerging NGIO, which includes GSI’s Rue La La and ShopRunner operations, showed a loss of $4.6 million, nearly four times the $1.2 million loss in the year-earlier period. Rue La La is a members-only web retailer that offers limited-time sales of designer apparel, travel packages and other products. ShopRunner is a service that lets online retailers offer cut-rate shipping for an annual fee, competing with the Amazon Prime program from Amazon.com Inc.
Amazon.com is No. 1 in the Internet Retailer Top 500 Guide; Rue La La is No. 103, Timberland is No. 436, and Toys ‘R’ Us is No. 37.