GSI Commerce Inc. reported net revenues for the company’s third fiscal quarter increased 49.3% to $284.1 million from $190.3 million in the year-ago period, exceeding the company’s guidance of $280 million. Contributing to the uptick in year-over-year revenue was the inclusion of RueLaLa in the company’s consolidated results, strong comparable store growth in e-commerce services, and organic growth in marketing services.
Non-GAAP income from operations increased 10% to $13.3 million versus $12.1 million last in the prior-year quarter. In any case, non-GAAP income was well ahead of the company’s guidance of $10 million.
On a segmented basis, net revenues for the e-commerce services segment increased 22.0% in the quarter to $203.1 million from $166.6 million in Q3 last year. Segment profit was $5.6 million in the quarter, flat with the prior-year quarter. Segment margins decreased 60 basis points to 2.8% of sales.
On a segmented basis, net revenues for the e-commerce services segment increased 22.0% in the quarter to $203.1 million from $166.6 million in Q3 last year. Segment profit was $5.6 million in the quarter, flat with the prior-year quarter. Segment margins decreased 60 basis points to 2.8% of sales.
The company’s loss from operations was $20.2 million, compared to $9.9 million in Q3 last year. Non-GAAP operating margin as a percentage of net revenues was 4.7% for the third quarter, declining by 170 basis points, from 6.4% last year, but increasing by 20 basis points sequentially from 4.5% in the second quarter and above a guidance of 3.6%.
“GSI delivered solid growth in net revenues and non-GAAP income from operations in the third quarter and has generated strong results for the first nine months of 2010,” said Michael G. Rubin, chairman and CEO of GSI. In addition to the positive results in the second quarter, GSI finished development and soft launched ShopRunner in early October.
