E-commerce software platform provider BigCommerce (NASDAQ: BIGC) will be reporting earnings tomorrow before the bell. Here's what to look for.
BigCommerce beat analysts' revenue expectations by 3.2% last quarter, reporting revenues of $84.15 million, up 16.2% year on year. It was a weaker quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter.
Is BigCommerce a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting BigCommerce's revenue to grow 7.7% year on year to $77.26 million, in line with the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BigCommerce has missed Wall Street's revenue estimates twice over the last two years.
Looking at BigCommerce's peers in the e-commerce software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7%, beating analysts' expectations by 1.1%, and VeriSign reported revenues up 5.5%, in line with consensus estimates. GoDaddy's stock price was unchanged after the resultswhile VeriSign was down 4%.
Read our full analysis of GoDaddy's results here and VeriSign's results here.
Inflation fears have put pressure on growth stocks, and while some of the e-commerce software stocks have fared somewhat better, they have not been spared, with share prices down 2.6% on average over the last month. BigCommerce is up 7.9% during the same time and is heading into earnings with an average analyst price target of $9.5 (compared to the current share price of $7.12).
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