Saturday, May 31, 2025

Latest

WeCommerce: Canaccord Reiterates $20 Price Target After Lumpy Quarter

On August 26, WeCommerce (TSXV: WE) reported its second quarter financial results. The company announced total revenue came in at $9.53 million, up 57.6% sequentially, while SG&A came in at $6.85 million, up 60.4% and putting operating margins at -5.2%, down from the -2.3% in the first quarter. The firm reported earnings per share of -$0.01, while EBITDA came in at $3.2 million, for a 34% EBITDA margin.

WeCommerce only has two analysts covering the stock, with TD having a $22 price target, or an 86% upside. Canaccord meanwhile has a $20 price target. One analyst has a strong buy rating and the other analyst has a buy rating.

Canaccord Genuity reiterated their $20 12-month price target and buy rating on WeCommerce saying that this quarter shows that the company’s themes are taking a breather but the long-term growth/thesis remains intact. Canaccord forecasted revenue to be $10.22 million for the quarter. The miss came from Canaccord estimating digital goods revenue to be $2.68 million, while it came in at $1.96 million. Adjusted EBITDA came in at $2.87 million, or a 30.2% margin, while Canaccord’s estimates were $3.97 million and 38.9%.

Canaccord says that the company’s app revenue “benefited from the addition of Stamped although FX and a pricing change favoring volume over upfront payment were temporary headwinds.” Service revenue benefited from easier comps due to the second quarter of 2020 being in the middle of the pandemic, while digital goods revenue was missed due to customers pausing decisions in front of an expected change at Shopify Unite. Canaccord believes that this miss will be more temporary in nature than any permanent changes.

Canaccord still sees the company’s M&A opportunity strong, “with $100M+ of revenue and a variety of targets ranging in size and valuation.” The company ended the second quarter with $5.1 million but closed a bought deal after the quarter ended. The company also has a $50 million term loan and $12.5 million in a revolver loan. Canaccord believes that net cash is currently $35 – $40 million.

Below you can see Canaccord’s updated third quarter, full year 2021, and 2022 estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Roblox: Analysts Q1 Consensus Estimates

Roblox Corp (NYSE: RBLX) will be reporting their first quarter financial results this evening after...

Monday, May 10, 2021, 03:31:00 PM

Aurora Cannabis: Stifel Lowers Rating To Hold, Price Target Falls To $10.50 From $16

Yesterday, Aurora Cannabis (TSX: ACB) (NYSE: ACB) provided a business update. The firm announced that...

Wednesday, September 9, 2020, 01:47:00 PM

Stifel-GMP: Canopy Growth CEO’s Legacy is “Poor Execution, Misallocated Capital, and Mismanaged Expectations.”

Earlier this month, Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) reported their fiscal second-quarter 2022...

Sunday, November 21, 2021, 12:03:00 PM

Bragg Gaming: Canaccord Drops Target To $21 Due To Sector Tailwinds

On November 8th, Bragg Gaming (TSX: BRAG) reported their third quarter financial results. The company...

Tuesday, November 23, 2021, 10:24:00 AM

Endeavour Silver Beats BMO’s Production Estimates By 30%

Last week, Endeavour Silver Corp. (TSX: EDR) announced their third quarter production highlights. For the...

Thursday, October 14, 2021, 03:20:00 PM