BigCommerce (BIGC) Q4 Earnings Report Preview: What To Look For

E-commerce software platform provider BigCommerce (NASDAQ: BIGC) will be reporting earnings tomorrow before market open. Here’s what to look for.

BigCommerce beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $83.71 million, up 7.3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ annual recurring revenue estimates.

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 3.2% year on year to $86.86 million, slowing from the 16.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

Analysts covering the company have generally 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 Q4 results, giving us a hint as to what we can expect. Shopify delivered year-on-year revenue growth of 31.2%, beating analysts’ expectations by 3%, and GoDaddy reported revenues up 8.4%, topping estimates by 1.4%. Shopify’s stock price was unchanged after the results, while GoDaddy was down 14.4%.

Read our full analysis of Shopify’s results here and GoDaddy’s results here.

There has been positive sentiment among investors in the e-commerce software segment, with share prices up 5.4% on average over the last month. BigCommerce is up 14.7% during the same time and is heading into earnings with an average analyst price target of $8.30 (compared to the current share price of $6.95).

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