These are exciting times for us at PFSweb. We continued to see outstanding growth opportunities for
our business evidenced by the strong growth results in our service fees over the past two quarters.
We believe that this trend of solid growth will continue as we look
to the future, and are being
driven by, not only the addition of new clients, but also from solid organic growth from our
existing client base.
One of the key drivers of our growth is coming from the manufacturer direct-to-consumer web
commerce channel, where we continue to see outstanding results as well as numerous new client
opportunities from a variety of well-known fashion, health and beauty, and consumer packaged goods
companies. As a result, we are ahead of what we believe is the next big step forward for the web
commerce industry overall, putting us on the right path toward the long-term revenue growth and
The first quarter of 2011 was marked with several key achievements and the continuation of a number
of themes that began to take form over the past couple of years for us, and which we will continue
to pursue during the remainder of 2011 and beyond.
Let me recap a few highlights for you. First, probably the most important achievement has been the
ongoing growth of our service fee revenue, which increased 18% this past quarter compared to the
same period last year. The increase in revenue was attributable to successful ramp-up of client
programs launched within the last 18 months. This is important because its a clear indicator that
were succeeding alongside our clients, which is important for our long-term success.
Overall, were extremely pleased with the successful launch of many of our new client programs over
the past year, and we remain excited and optimistic about the long-term growth potential of many of
these new client programs.
Second, its the significant increase in the number of simultaneous new client programs we have
begun deploying since the beginning of year. In total, we are now working on 11 new separate
contracted eCommerce client programs that are set to launch over the next six months. Eight of
those are our full End2End eCommerce solution.
In case youre keeping track, weve included four of these programs as client wins in our previous
discussions and previous conference calls. Five more of the programs are incremental brands under
our Master agreement with one expanded client relationship. This is a trend were seeing more and
In addition to these 11 programs in development, as we recently discussed in our last call a little
more than one month ago, one of the new programs we launched and we launched with a big bang was
kate spade new york, a Liz Claiborne brand. Ill let Mike discuss these recent launches and
disclose some additional client names as were permitted to do so here in a couple of minutes.
Next, were very excited about the string of new client programs in development for launch in 2011.
Perhaps even more exciting is the growing pipeline of new business that weve seen develop over the
past couple of quarters, and the rate at which we are able to win new business.
fact, 11 of the projects in the development or of the 11 projects in development, seven of the
projects have been contracted as part of three new or expanded client agreements since January 1st
of this year. These new deals are with some of the worlds most recognizable companies and iconic
brands. Mike will also add some flavor to that here in a couple of minutes.
Although, weve had success in closing new business agreements, meaning, these amounts came out of
our new business pipeline, weve also been busy adding to the pipeline potential new clients as
well. And as such, our pipeline, based on client projections, still sits at more than $50 million
in size continuing to be at nearly the largest level in our history.