BigCommerce (BIGC) Q4 Earnings: What To Expect

Radek Strnad /
2022/02/28 6:59 am EST
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E-commerce software platform provider BigCommerce (NASDAQ: BIGC) will be announcing earnings results today after market hours. Here's what to look for.

Last quarter BigCommerce reported revenues of $59.2 million, up 49.2% year on year, beating analyst revenue expectations by 8.09%. It was a very strong quarter for the company, with accelerating growth in large customers and an exceptional revenue growth. The company added 1,392 enterprise customers paying more than $2,000 annually to a total of 12,378.

Is BigCommerce buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting BigCommerce's revenue to grow 43.3% year on year to $61.8 million, improving on the 39% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.12 per share.

BigCommerce Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 1 upward revision over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.76%.

Looking at BigCommerce's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. GoDaddy (NYSE:GDDY) delivered top-line growth of 16.6% year on year, beating analyst estimates by 4.74% and Wix (NASDAQ:WIX) reported revenues up 16.2% year on year, missing analyst estimates by 1.35%. GoDaddy traded up 8.62% on the results, Wix was down 23.6%. Read our full analysis of GoDaddy's results here and Wix's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.13% over the last month. BigCommerce is down 23.5% during the same time, and is heading into the earnings with analyst price target of $59.2, compared to share price of $25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.