What To Expect From BigCommerce’s (BIGC) Q2 Earnings

Kayode Omotosho /
2022/08/03 4:18 am EDT

E-commerce software platform provider BigCommerce (NASDAQ: BIGC) will be announcing earnings results tomorrow afternoon. Here's what to look for.

Last quarter BigCommerce reported revenues of $66 million, up 41.5% year on year, beating analyst revenue expectations by 3.46%. It was a mixed quarter for the company, with an exceptional revenue growth but decelerating growth in large customers. The company added 218 enterprise customers paying more than $2,000 annually to a total of 12,972.

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 34.9% year on year to $66.2 million, in line with the 34.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 per share.

BigCommerce Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions 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 6.87%.

Looking at BigCommerce's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Squarespace delivered top-line growth of 8.51% year on year, beating analyst estimates by 0.32% and Sprout Social reported revenues up 37.4% year on year, exceeding estimates by 1.86%. Both companies (Squarespace and Sprout Social) traded flat on the results. Read our full analysis of Squarespace's results here and Sprout Social's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.79% over the last month. BigCommerce is down 11.8% during the same time, and is heading into the earnings with analyst price target of $28.1, compared to share price of $16.4.

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.