BigCommerce (BIGC) is a software-as-a-service (SaaS) platform that provides small and medium-sized businesses with search engine optimization, hosting, online store creation, security, and marketing.
Let’s take a look at the company’s financials and understand what has changed in its key risk factors that investors should know. (See Insiders’ Hot Stocks on TipRanks)
Q3 Financial Results
The firm recorded $59.3 million in revenue in Q3, up 49% year-over-year. The non-GAAP net loss was $0.06 per share, down from $0.16 per share in the year-ago quarter.
During the quarter, the company acquired Feedonomics, a full-service data feed management platform for $145 million. As a result of the transaction, BigCommerce will receive access to Feedonomics’ effective data management platform.
BigCommerce Risk Factors
According to the new TipRanks Risk Factors tool, BigCommerce’s main risk category is Finance & Corporate, which accounts for 43% of the total 65 risks identified. The next two major risk factor contributors are Tech & Innovation and Legal & Regulatory, which stand at 17% and 15%, respectively.
The company recently updated its profile with four new risk factors.
BigCommerce warned investors that the accounting technique for its convertible notes, as well as the mounting interest expense associated with them, might harm the company’s financial results.
The business also warns investors that it may run out of funds and may be unable to repurchase the convertible notes or pay cash upon conversion.
Further, BigCommerce notified investors that its convertible notes come with terms that may not be favorable to it. It indicates that some of the requirements may preclude it from being purchased, even if the acquisition was advantageous.
BigCommerce has also cautioned that Feedonomics’ integration might take time and that the firm may not be able to realize the acquisition’s potential benefits.
The Finance and Corporate risk factor’s sector average stands at 40.4%.
Web Traffic Declines
From September to October, we noticed a 9.2% increase in unique user visits to BigCommerce’s website. Moreover, this period was met by decreasing share prices, which fell by 9.9%.
Wall Street’s Take
Consensus among analysts is a Moderate Buy based on three Buy ratings and three Hold ratings in the last three months. The average BIGC price target is $71, reflecting a potential 12-month upside of 25.6% from current levels.
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