ATG Sees 9% Revenue Growth in Q4 and 2009
Internetretailer.com released an article this week mentioning the considerable growth seen by online software and service provider Art Technology Group, Inc. In the midst of a shabby economic climate in 2009, ATG achieved record financial results, said president and CEO Bob Burke. In 2009, ATG saw their highest revenue and net income ever, and signed on a number of new clients. Given the current growth of the e-commerce sector, Burke is excited for what will come in 2010.
Regarding their stock, ATG has just revealed plans to sell an additional 25 million shares which would generate around $100 million to be used to increase working capital and for general “corporate purposes,” possibly including acquisitions. In Q4 2009, ATG reported revenue of $49.7 million, up $4.3 million from the year before. Net income in Q4 was $5.2 million compared to $3.5 million a year earlier. 2009 as a whole saw revenue of $179.4 million, up from $164.6 in 2008. Net income in 2009 was $16.8 million vs. $3.8 million the year prior.
To break it down, ATG generates 55% of revenue from ‘recurring services,’ which include operating e-commerce websites and providing live chat and click-to-call services. Thirty percent of ATG revenue is from the licensing of e-commerce software. Their impressive client roster includes online retailers such as Amazon, Sears, Best Buy and Neiman Marcus.