GSI Commerce Inc. reported net revenues for the first quarter ended July 3 increased 41% to $264.2 million from $187.2 million in the year-ago period.
Non-GAAP income from operations increased 28% to $11.8 million compared to $9.3 million in 2009 and above the company’s quarterly guidance of $10 million. Non-GAAP operating margin as a percentage of net revenues was 4.5% for the quarter, a decrease of 50 basis points from 5% in Q2 2009, a reflection of the addition of RueLaLa.
With that in mind, however, GSI credits a large amount of the company’s second quarter success to its newly acquired RueLaLa brand. Mike Conn, CFO of GSIC shed some light on the driving factors reflecting the increases. “Key drivers to the year-over-year growth were the inclusion of RueLaLa in our consolidated results, comparable store growth in E-Commerce Services, organic growth in Marketing Services, and contribution from newly-acquired companies of approximately $5 million,” said Conn. “RueLaLa is experiencing rapid viral growth in users and revenue, and our focus is on ensuring we maximize this opportunity,” Conn concluded.
Loss from operations was $22.6 million compared to a loss from operations of $12.3 million in Q2 last year, and significantly better than the company’s guidance loss of $20.9 million. GSIC said its trailing 12-month non-GAAP income from operations was $117 million, up 26% from last year’s second quarter.
On a segmented basis, the company’s e-commerce service segment showed promise with net revenues increasing 15% in the quarter to $187.9 million from $163.8 million last year.
