BigCommerce tumbles as analysts reduce PTs after weak rev guidance

Commerce.com

24/02/2023 17:02

** BigCommerce Holdings Inc's  BIGC.O  shares drop 20.0% to
$9.07 amid broader market slide on Fri after it disappoints on
the top line
    ** E-commerce platform provider late Thurs posted Q4 rev of
$72.4 mln, up 12% yr/yr, vs consensus of $73.3 mln, per
Refinitiv
    ** FY 2023 rev forecast of $301-$313 mln below avg est of
$318.6 mln
    ** At least 6 analysts reduce their PTs; Goldman Sachs
sticks with "buy" rating, but cuts by most, going to $13 from
$21
    ** Rev guidance weakness due to slowing pace of migrations
from legacy tech to BIGC tech in enterprise, elongating deal
cycles and co's reduced investment in non-enterprise segment,
Goldman says in note
    ** "With an uncertain and volatile demand environment for
ecommerce & consumer spending more broadly, we remain on the
sidelines - until we have better visibility into a growth trough
across Enterprise & SMB ARR," Piper Sandler wrote
    ** Avg rating among 15 analysts is "hold"; median PT of
$11.50 down from $17.50 on Nov 24 - Refinitiv
    ** With move on the session, BIGC shares up ~4% YTD but have
shed ~64% over the past 12 months
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))