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•	Total revenue of $32.3 million and $96.4 million for the three and nine months ended September 30, 2018 increased 7.4% and 9.0%, respectively, from the comparable prior year periods;

•	Average revenue per customer of $46,073 for the twelve months ended September 30, 2018 increased 10.4% compared with $41,748 for the twelve months ended September 30, 2017;

•	Revenue was comprised of 79.5% and 20.5% fixed and variable subscription fees, respectively, for the three months ended September 30, 2018 compared with fixed and variable subscription fees of 79.3% and 20.7%, respectively, for the three months ended September 30, 2017;

•	Revenue was comprised of 77.2% and 22.8% fixed and variable subscription fees, respectively, for the nine months ended September 30, 2018 compared with fixed and variable subscription fees of 77.5% and 22.5%, respectively, for the nine months ended September 30, 2017;

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•	Revenue derived from customers located outside of the United States as a percentage of total revenue was 24.3% and 23.2% for the three and nine months ended September 30, 2018, respectively, compared with 23.1% and 21.6%, respectively, for the comparable prior year periods;

•	Gross margin of 76.5% and 77.3% for the three and nine months ended September 30, 2018, respectively, improved by 80 and 230 basis points, respectively, from the comparable prior year periods;

•	Operating margin of (6.9)% and (8.4)% for the three and nine months ended September 30, 2018, respectively, improved by 680 and 990 basis points, respectively, from the comparable prior year periods;

•	Net loss of $(2.3) million and $(8.2) million for the three and nine months ended September 30, 2018, respectively, improved compared to net loss of $(4.1) million and $(16.1) million, respectively, for the comparable prior year periods;

•	Adjusted EBITDA was $2.3 million and $4.4 million for the three and nine months ended September 30, 2018, respectively, compared to adjusted EBITDA of $0.4 million and $0.7 million, respectively, for the comparable prior year periods;

•	Cash and cash equivalents was $48.9 million at September 30, 2018 compared with $53.4 million at December 31, 2017; and

•	Operating cash flow was $1.1 million for the nine months ended September 30, 2018 compared to $(2.2) million for the nine months ended September 30, 2017.

•	Growth in Online Shopping. Consumers continue to move more of their retail spending from offline to online retail. The continuing shift to online shopping and overall growth has contributed to our historical growth and we expect that this online shift will continue to benefit our business.

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Product Offering Expansion. As online shopping evolves, we continue to expand our product offerings to reflect the needs of companies seeking to attract consumers. In 2017, we expanded our research and development capabilities with new talent through organic growth, an acquisition and expanding our operations overseas with the opening of a new research and development facility in Madrid, Spain. In 2018, we continued to enhance our product offering by increasing online shopping marketplace channel integrations, including first-party retail programs, and improving our analytics capabilities and fulfillment features.

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Growth in Mobile Usage. We believe the shift toward mobile commerce will increasingly favor aggregators such as Amazon, eBay and Google, all of which are focal points of our platform. These systems understand the identity of the buyer, helping to reduce friction in the mobile commerce process, while offering a wide selection of merchandise in a single location. The growth in mobile commerce may result in increased revenue for us.

•	Shift to Larger Customers. We believe that the growth in online shopping increasingly favors larger enterprises. This move impacts our business both in longer sales cycles as well as increased average revenue per customer.

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Evolving Fulfillment Landscape. Consumers have been conditioned to expect fast, efficient delivery of products. We believe that determining and executing on a strategy to more expeditiously receive, process and deliver online orders, which we refer to collectively as fulfillment, is critical to success for online sellers. Therefore, it will be increasingly important for us to facilitate and optimize fulfillment services on behalf of our customers, which in turn may result in additional research and development investment. We believe our strategic acquisition of a fulfillment platform in 2017 will continue to further enhance our fulfillment offering and strategy.

•	Focus on Employees. We strive to provide competitive compensation and benefits programs to help attract and retain employees who are focused on facilitating the success of our customers. We increased headcount by 5.7% from September 30, 2017 to September 30, 2018 to help drive revenue growth and support our overall operations.

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Seasonality. Our revenue fluctuates as a result of seasonal variations in our business, principally due to the peak consumer demand and related increased volume of our customers’ gross merchandise value, or GMV, during the year-end holiday season. As a result, we have historically had higher revenue in our fourth quarter than other quarters due to increased GMV processed through our platform, resulting in higher variable subscription fees.

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•	Dynamic E-commerce Landscape. We need to continue to innovate in the face of a rapidly changing e-commerce landscape if we are to remain competitive. We also need to effectively manage our growth, especially related to our international expansion.

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Brands and Retailers. As consumer preferences potentially shift away from smaller retailers, we need to continue to add brands and large retailers as profitable customers. These customers generally pay a lower percentage of GMV as fees to us based on the relatively higher volume of their GMV processed through our platform. To help drive our future growth, we have made significant investments in our sales force and allocated resources focused on growing our customer base of brands and large retailers. We continue to focus our efforts on increasing value for our customers to support higher rates.

•	Strategic Partnerships. Our business development team’s mission is to expand our sales and market opportunities through strategic partner relationships. We plan to continue to invest in initiatives to expand our strategic partnership base to further enhance our offerings for brands and retailers.

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Increasing Complexity of E-commerce. Although e-commerce continues to expand as brands and retailers continue to increase their online sales, it is also becoming more complex due to the hundreds of channels available to brands and retailers and the rapid pace of change and innovation across those channels. In order to gain consumers’ attention in a more crowded and competitive online marketplace, an increasing number of brands and many retailers sell their merchandise through multiple online channels, each with its own rules, requirements and specifications. In particular, third-party marketplaces are an increasingly important driver of growth for a number of brands and large online retailers. As a result, we need to continue to support multiple channels in a variety of geographies in order to support our targeted revenue growth. As of September 30, 2018, we supported 111 marketplaces.

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Global Growth in E-commerce. We believe the growth in e-commerce globally presents an opportunity for brands and retailers to engage in international sales. However, country-specific marketplaces are often the market share leaders in their regions, as is the case for Alibaba in Asia. In order to help our customers capitalize on this potential market opportunity, and to address our customers’ needs with respect to cross-border trade, we intend to continue to invest in our international operations, particularly in the Asia-Pacific region. Doing business overseas involves substantial challenges, including management attention and resources needed to adapt to multiple languages, cultures, laws and commercial infrastructure, as further described in this report under the caption "Risks Related to our International Operations."

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•	although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

•	adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

•	adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation;

•	adjusted EBITDA does not reflect interest or income tax payments that may represent a reduction in cash available to us; and

•	other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

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•	$1.8 million in compensation and employee-related costs, mainly due to additional headcount to support our sales and marketing organization to continue to grow our business; and

•	$0.1 million in marketing and advertising expenses, promotional event programs and travel costs to support expanding marketing activities; partially offset by

•	$(1.8) million due to the deferral of sales commissions and a portion of other incentive compensation, referred to collectively as contract costs, which were expensed as incurred prior to our adoption of ASC 606 at the beginning of 2018.

•	$5.8 million in compensation and employee-related costs, mainly due to additional headcount to support our sales and marketing organization to continue to grow our business; and

•	$0.3 million in marketing and advertising expenses, promotional event programs and travel costs to support expanding marketing activities; partially offset by

•	$(5.4) million due to the deferral of contract costs, which were expensed as incurred prior to our adoption of ASC 606 at the beginning of 2018.

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•	$(2.5) million for the one-time charge during 2017 in connection with entering into VDAs related to sales taxes with certain jurisdictions and settlement of a sales tax audit; partially offset by

•	$0.5 million in professional fees, including placement and contractor services, to facilitate the support and growth of our operations, and accounting services in connection with the assessment of the effectiveness of our internal controls over financial reporting.

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•	The amount of cash we invest in personnel and infrastructure to support the anticipated growth of our business;

•	The amount and timing of customer payments;

•	The seasonality of our business, as noted above, which results in variations in the timing of invoicing and the receipt of payments from our customers; and

•	In 2017, the amounts paid in connection with entering into VDAs related to sales taxes, and in 2018, the amount we paid in settlement of a sales tax audit.

•	Acquisitions, net of cash acquired;

•	Capitalized expenditures to create internally developed software and implement software purchased for internal use; and

•	Purchases of property and equipment to support the expansion of our infrastructure and acquisitions.

•	Proceeds from the exercises of stock options;

•	Payments on capital lease obligations; and

•	Tax withholdings related to the net-share settlement of restricted stock units.

•	an $11.2 million decrease in accounts payable and accrued expenses driven by the timing of payments to our vendors, payments for certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ("agency of record") and a $1.0 million payment in 2018 to settle a sales tax audit;

•	a $5.3 million increase in deferred contract costs as a result of our adoption of ASC 606 (sales commissions and a portion of other incentive compensation are now deferred and amortized to expense over the expected period of benefit); and

•	a $2.5 million net decrease in deferred revenue as a result of our adoption of ASC 606 and the timing of revenue recognition for managed-service contracts (we now recognize revenue for subscription and implementation fees ratably, beginning on the launch date, through the term of the contract). These decreases in cash were offset by increases in cash due to

•	a $10.6 million decrease in prepaid expenses and other assets, primarily related to agency of record receipts (we record the amounts due from customers as a result of these arrangements as other receivables); and

•	a $4.5 million decrease in accounts receivable as a result of increased cash collections during the period.

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•	$1.6 million of capital expenditures primarily related to the purchase of computer equipment; and

•	$0.6 million of capitalized internal-use software development costs.

•	$2.1 million used for the repayment of capital leases; and

•	$2.1 million used for the payment of taxes related to the net-share settlement of restricted stock units; partially offset by

•	$1.1 million in cash received upon the exercise of stock options.

•	a $1.7 million increase in accounts receivable as a result of increased revenue and customer growth;

•	a $1.4 million increase in prepaid expenses and other assets, primarily related to agency of record receipts (we record the amounts due from customers as a result of these arrangements as other receivables); and

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a $0.1 million net decrease in accounts payable and accrued expenses that is a result of a decrease in accounts payable of $1.2 million, driven by the timing of payments to our vendors during the period, partially offset by a $1.1 million increase in accrued expenses primarily attributable to the balance of a one-time charge in connection with entering into VDAs related to sales taxes. These decreases in cash were partially offset by an increase in cash due to

•	a $3.0 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis.

•	$2.4 million of capital expenditures primarily related to the purchase of computer equipment;

•	$2.2 million for the acquisition of a fulfillment platform, net of cash acquired; and

•	$0.2 million of capitalized internal-use software development costs.

•	$2.6 million used for the payment of taxes related to the net-share settlement of restricted stock units; and

•	$2.6 million used for the repayment of capital leases; partially offset by

•	$0.6 million in cash received upon the exercise of stock options.

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•	Potential customers may choose to continue using or to develop applications in-house, rather than pay for our solutions;

•	The channels themselves, which typically offer software tools, often for free, that allow brands and retailers to connect to them, may decide to compete more vigorously with us;

•	Competitors may adopt more aggressive pricing policies and offer more attractive sales terms, adapt more quickly to new technologies and changes in customer requirements, and devote greater resources to the promotion and sale of their products and services than we can;

•	Current and potential competitors have established or may establish cooperative relationships among themselves or with third parties to enhance their products and expand their markets, and consolidation in our industry is likely to intensify. Accordingly, new competitors or alliances among competitors may emerge and rapidly acquire significant market share;

•	Current and potential competitors may offer software that addresses one or more online channel management functions at a lower price point or with greater depth than our solutions and may be able to devote greater resources to those solutions than we can; and

•	Software vendors could bundle channel management solutions with other solutions or offer such products at a lower price as part of a larger product sale.

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•	seasonal patterns in consumer spending;

•	the addition of new customers or the loss of existing customers;

•	changes in demand for our software;

•	the timing and amount of sales and marketing expenses;

•	changes in the prospects of the economy generally, which could alter current or prospective customers’ spending priorities, or could increase the time it takes us to close sales;

•	changes in our pricing policies or the pricing policies of our competitors;

•	costs necessary to improve and maintain our software platform; and

•	costs related to acquisitions of other businesses.

•	hire additional personnel, both domestically and internationally;

•	implement additional management information systems;

•	maintain close coordination among our engineering, operations, legal, finance, sales and marketing and client service and support organizations; and

•	further develop our operating, administrative, legal, financial and accounting systems and controls.

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•	difficulties in integrating the operations, technologies, services and personnel of acquired businesses, especially if those businesses operate outside of our core competency of providing e-commerce software solutions;

•	cultural challenges associated with integrating employees from acquired businesses into our organization;

•	ineffectiveness or incompatibility of acquired technologies or services;

•	failure to successfully further develop the acquired technology in order to recoup our investment;

•	potential loss of key employees of acquired businesses;

•	inability to maintain the key business relationships and the reputations of acquired businesses;

•	diversion of management’s attention from other business concerns;

•	litigation for activities of acquired businesses, including claims from terminated employees, customers, former stockholders or other third parties;

•	in the case of foreign acquisitions, the need to integrate operations across different cultures and languages and to address the particular economic, currency, political and regulatory risks associated with specific countries;

•	costs necessary to establish and maintain effective internal controls for acquired businesses; and

•	increased fixed costs.

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•	recruiting and retaining employees in foreign countries;

•	increased competition from local providers;

•	compliance with applicable foreign laws and regulations;

•	compliance with changing foreign privacy, data protection and information security laws and regulations and the risks and costs of noncompliance;

•	longer sales or collection cycles in some countries;

•	credit risk and higher levels of payment fraud;

•	compliance with anti-bribery laws, such as the Foreign Corrupt Practices Act;

•	currency exchange rate fluctuations;

•	tariffs, customs, trade sanctions, trade embargoes and other barriers to importing or exporting materials and products in a cost-effective and timely manner, or changes in applicable tariffs or customs rules;

•	foreign exchange controls that might prevent us from repatriating cash earned outside the United States;

•	economic and political instability in some countries, including terrorist attacks and civil unrest, as well as instability related to the United Kingdom’s planned exit from the European Union, commonly referred to as “Brexit”;

•	less protective intellectual property laws;

•	compliance with the laws of numerous foreign taxing jurisdictions in which we conduct business, potential double taxation of our international earnings and potentially adverse tax consequences due to changes in applicable U.S. and foreign tax laws;

•	increased costs to establish and maintain effective controls at foreign locations; and

•	overall higher costs of doing business internationally.

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•	hurt our reputation;

•	adversely affect our relationships with our current or future customers;

•	cause delays or stoppages in providing our services;

•	divert management’s attention and resources;

•	require technology changes to our software that would cause us to incur substantial cost;

•	subject us to significant liabilities; and

•	require us to cease some or all of our activities.

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•	actual or anticipated variations in our operating results;

•	changes in financial estimates by us or by any securities analysts who might cover our stock;

•	conditions or trends in our industry;

•	stock market price and volume fluctuations of comparable companies and, in particular, those that operate in the software industry;

•	announcements by us or our competitors of new product or service offerings, significant acquisitions, strategic partnerships or divestitures;

•	announcements of investigations or regulatory scrutiny of our operations or lawsuits filed against us;

•	capital commitments;

•	investors’ general perception of our company and our business;

•	recruitment or departure of key personnel; and

•	sales of our common stock, including sales by our directors and officers or specific stockholders.

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•	only one of our three classes of directors is elected each year;

•	stockholders are not entitled to remove directors other than by a 66 2/3% vote and only for cause;

•	stockholders are not permitted to take actions by written consent;

•	stockholders cannot call a special meeting of stockholders; and

•	stockholders must give advance notice to nominate directors or submit proposals for consideration at stockholder meetings.

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*	Filed herewith.

**

These certifications are being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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