Overview
E-commerce solutions provider's Q4 revenue slightly missed analyst expectations, up 3% yr/yr
Adjusted EPS for Q4 met analyst expectations
Company highlighted transformation with rebranding and AI-powered commerce focus
Outlook
Commerce.com expects Q1 2026 revenue between $82.5 mln and $83.5 mln
Company projects full-year 2026 revenue between $347.5 mln and $369.5 mln
Commerce.com anticipates Q1 2026 non-GAAP operating income between $9.3 mln and $10.3 mln
Result Drivers
ENTERPRISE GROWTH - ARR from enterprise accounts grew 10% yr/yr, now comprising 80% of total ARR
REGIONAL PERFORMANCE - EMEA revenue grew 20% while APAC revenue declined 5% yr/yr
REBRANDING AND STRATEGIC SHIFT - Co completed rebranding to Commerce, focusing on AI-powered commerce
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $89.50 mln | $90.16 mln (8 Analysts) |
Q4 Adjusted EPS | Meet | $0.07 | $0.07 (8 Analysts) |
Q4 Gross Margin | 78.00% | ||
Q4 Adjusted Gross Margin | 79.00% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Commerce.com Inc is $6.00, about 119% above its February 11 closing price of $2.74
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nGNX62Jmgf
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)