BigCommerce's Strong Black Friday And Thanksgiving Sales Data Impresses Analysts

Needham analyst Scott Berg reiterated a Buy on BigCommerce Holdings, Inc BIGC with a $20 price target.
BigCommerce announced stronger-than-expected Black Friday and Thanksgiving sales than expected, with GMV up 31% Y/Y.
While this data point was released in a bit of a vacuum since the company did not offer it last year, he noted that the company did announce that 2021 Cyber Week GMV grew only 15% Y/Y.
However, BIGC's GMV growth was much more substantial than the 1.4% reported by Adobe Inc ADBE Adobe Analytics and the 17% reported by Shopify Inc SHOP, which he believes is a strong indication of two items.
4Q22 PSR outperformance can be better than the 7% reported in 4Q21. The growth likely indicates that the company's upmarket Enterprise focus is selling well since these customers have higher overall volumes with more predictable sales, Berg wrote.
Raymond James analyst Brian Peterson had a Market Perform rating.
The 31% growth in Black Friday GMV (and the 23% growth on Thanksgiving) is well more than the consensus PSR revenue, calling for just 10% growth Y/Y.
Peterson knew that PSR revenue drivers are not a one-to-one correlation for GMV, although early data suggest that trends are coming in above his initial expectations.
Peterson was also encouraged to hear that merchants began to see holiday purchase spikes in October, although it's unclear to what extent current trends will continue into December.
Either way, the news offers a positive development for shares that are down 78% YTD, with a potential for a 4Q22 beat offering a near-term positive catalyst for a stock that trades at just 2x his CY23 revenue estimate.
Price Action: BIGC shares traded higher by 6.72% at $8.42 on the last check Tuesday.

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