Shares of Open SaaS E-commerce platform BigCommerce Holdings, Inc. (BIGC) declined 3% and closed at $69.20 in the extended trading session despite its better-than-expected second-quarter results.
The company reported quarterly revenues of $49 million, up 35% from the year-ago period, and surpassed the Street’s expectations of $46.78 million. The growth was mainly driven by Subscription solutions revenues, which rose 42% year-over-year to about $34 million.
BigCommerce reported a loss per share of $0.06, which compares favourably with last year’s loss of $0.38. Moreover, it topped the consensus estimate of a loss of $0.11 per share.
Notably, the company also provided revenue guidance for its third quarter and 2021. BIGS expects third-quarter revenues to be in the range of $54.5-$55 million. For the full-year 2021, it anticipates revenues to be in the range of $210.7-$211.7 million. The consensus for the same is pegged at $197.7 million.
The CEO of BigCommerce, Brent Bellm, said, “Q2 concludes our first full year as a public company. Our revenue growth rate this quarter, which surpassed what we achieved the same period last year, marks the sixth consecutive quarter above 30% and reflects our continued momentum in powering digital commerce success. We aspire to be the world’s most innovative Open SaaS E-commerce platform, and we’re excited about the breadth of new customer, product, partnership and international announcements made this quarter.” (See BigCommerce stock chart on TipRanks)
Recently, Wedbush analyst Ygal Arounian reiterated a Hold rating on the stock. The analyst, however, raised the price target from $52 to $60, which implies downside potential of 15.9% from current levels.
The Street is cautiously optimistic about the stock with a Moderate Buy consensus based on 4 Buys and 8 Holds. The average BigCommerce price target of $70.67 implies that the stock has 1% downside potential. Shares have declined about 23.7% over the past year.
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