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WeCommerce Holdings Ltd (TSXV:WE) has reported a significant revenue surge on a year-over-year (YoY) basis in its 2020 fourth fiscal quarter earnings.
The fintech firm stock also rose nearly four per cent on Thursday, April 22, on the back of the higher subscription revenue report.
WeCommerce went public on the Toronto Stock Exchange Venture (TSXV) via a reverse takeover of blank check company Brachium Capital Corp during the fourth quarter of fiscal 2020. The fintech stock rocketed 110 per cent on its first day of trading on December 14. It also concluded a financing worth C$ 60 million.
©Kalkine Group 2021
WeCommerce’s Latest Financials
The junior financial company posted a revenue of C$ 6.15 million in Q4 FY20, a rise of 53 per cent YoY compared to Q4 FY19. Its annual revenue was up by 40 per cent YoY in 2020.
However, WeCommerce also registered a net loss of approximately C$ 5.5 million in Q4 2020, led by its reverse acquisition and listing expenses.
The ecommerce company’s available cash balance zoomed multiple folds to C$ 61.2 million at the end of fiscal 2020, as compared to that of C$ 2.9 million as of December 31, 2019. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were up 17 per cent sequentially.
Let us glance at this emerging junior fintech stock’s performance.
WeCommerce Holdings Ltd (TSXV:WE)
WeCommerce Holdings acquires software products and services and outsources them to Shopify’s vendors. Its market cap stands at C$ 677.7 million, with a stock price of C$ 18.3 per share at the time of writing this (11.14AM EST).
The stock, currently trending on TSXV, surged over 614 per cent in the past one year (including Brachium Capital Corp’s performance), led by the surge in digital shopping demand amid lockdowns. Thus, the Software as a Service (SaaS) stock outpaced the benchmark index in the same period.
The e-commerce firm’s share price has increased by around 40 per cent from its listing in mid-December last year. However, it has dropped as much as 42.2 per cent against its January peak of C$ 31.99 apiece.
©Kalkine Group 2021
Wecommerce CEO Chris Sparling provided an outlook for fiscal 2021 through an exchange filing. He stated that WeCommerce continues to boost its operations in 2021, with the acquisition of Stamped (Online rating, review, and rewards provider) in a US$ 110 million deal.
