Retailers shift their ad spending from TV, radio and print ads to digital ads.
The vendor cites its strongest quarter in years thanks to an increase in the number of new customers worldwide. Aggressive spending on sales and marketing, including an ambitious move into the North American market for B2B e-commerce, however, left it with a net loss after taxes for the year of 3.33 euros (US$4.57 million) on total revenue of 57.34 million euros (US$78.77 million).
Germany-based e-commerce technology provider Intershop Communications AG reported last week a 105% increase in software licensing revenue during the fourth quarter of 2013 and 20% during the full financial year.
Chief financial officer Ludwig Lutter attributes the increases to Intershop’s intensified marketing and sales efforts that brought in new customers in the fourth quarter. “The fourth quarter brought numerous new customers and revenues at record level, demonstrating that we are on a good track in the competitive market for omnichannel commerce solutions,” Lutter says.
Intershop, which is based in Berlin, says it will continue building its sales activities in the North American region, where the company sees its biggest opportunities in selling business-to-business e-commerce technology, according to David Cunningham, general manager for the Americas. Intershop opened five new offices in the United States in the past year, and plans to open a sixth office, in Chicago, this year. Cunningham says the company has tripled its marketing budget this year over last to better compete in B2B e-commerce technology.
For the fourth quarter ended Dec. 31, the company reported:
● Net revenue of 15.01 million euros (US$20.62 million), up 14.5% from 13.11 million euros (US$18.01 million) a year earlier;
● Net software licensing revenue, of 3.69 million euros (US$5.07 million), up 105.0% from 1.80 million euros (US$2.47 million), and net revenue from services of 11.32 million euros (US$15.55 million), up slightly from 11.31 million euros.
● Sales and marketing expenses of 3.41 million euros (US$4.68 million), up 43.3% from 2.38 million euros (US$3.27 million);
● A net loss after tax of 30,000 euros (US$41,000), compared with a year-earlier net loss after tax of 600,000 euros (US$820,000)
For the fiscal year ended Dec. 31, Intershop reported:
● Net revenue of 53.56 million euros ($73.58 million), up 3.5% from 51.77 million euros ($71.12 million) a year earlier;
● Net software licensing revenue of 6.32 million euros ($8.68 million), up 19.7% from 5.28 million euros (US$7.25 million), and net services revenue of 47.24 million euros (US$64.90 million), up 1.6% from 46.49 million euros (US$63.87 million);
● Revenue from what Intershop calls its “full-service service business,” under which Intershop will manage all or parts of an e-commerce operation, including the online store, online marketing, the customer service contact center and web site hosting, of 8.70 million ($11.9 million), up 71.9% from about 5.06 million euros (US$6.95 million) a year earlier;
● Sales and marketing expenses of 11.95 million euros (US$16.42 million), up 42.6% from 8.38 million euros (US$11.51 million);
● A net loss after tax of 3.33 million euros (US$4.57 million), compared with a year-earlier net loss after tax of 580,000 euros (US$800,000).
The company will release its full consolidated financial statements in mid-March.
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