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Commerce.com (CMRC)
NASDAQ:CMRC
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Commerce.com
(NASDAQ:CMRC)
Rating:58Neutral
Price Target:
$5.00
▲(5.93% Upside)
Positive Factors
AI Integration
Commerce is helping by making its offering specifically AI focused with deeper integrations between its three core products and new partnerships with technology vendors.
Branding and Marketing
The new brand push is having a positive impact on deal flow, which suggests optimism for additional revenue growth into FY26.
Investor Confidence
Commentary on being ahead of the plan could help with building investor confidence on its execution potential.
Negative Factors
Growth Challenges
It's going to take a demonstrable re-acceleration in growth to get the stock working.
Revenue Growth
CMRC shares could trail many of its small cap peers until its total revenue growth profile improves.
Sales Levels
Sales appear generally stable, albeit at a lower level, with Enterprise ARR growing at 6% which was similar to the last four quarters while Retail ARR continues to be de-emphasized, compressing 7%.
Commerce.com (CMRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$370.57M
Dividend YieldN/A
Average Volume (3M)954.47K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth4.06%
EPS Growth57.50%
CountryUS
Employees350
SectorTechnology
Sector Strength83
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding80,735,080
10 Day Avg. Volume869,545
30 Day Avg. Volume954,470
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.16
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.83Price Target Upside65.89% Upside
Rating ConsensusHold
Number of Analyst Covering6
Commerce.com Business Overview & Revenue Model
Company DescriptionCommerce.com (CMRC) is a leading e-commerce platform that specializes in providing a wide range of products and services for both consumers and businesses. Operating in the digital retail sector, CMRC offers a user-friendly marketplace where customers can purchase everything from electronics and clothing to home goods and specialty items. The company is also involved in various sectors, including logistics, payment processing, and digital marketing services, helping to facilitate seamless transactions and enhance the shopping experience.
How the Company Makes MoneyCommerce.com generates revenue through multiple channels, primarily by taking a commission on sales made through its platform. This commission varies by product category and seller agreement. Additionally, the company offers subscription services for businesses that wish to enhance their visibility and access advanced analytics tools, creating a steady stream of recurring revenue. Advertising partnerships with brands looking to promote their products on the platform also contribute significantly to CMRC's earnings. Furthermore, CMRC has established strategic alliances with logistics and payment processing companies, allowing it to optimize delivery services and transaction efficiency, which in turn drives customer satisfaction and repeat business.
Commerce.com Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook due to revenue growth, improved margins, and strategic partnerships in AI-driven commerce. However, challenges remain in accelerating ARR growth and improving customer acquisition efficiency.Q2-2025 Updates
Positive Updates
Revenue and Profit Growth
Commerce reported Q2 revenue of $84.4 million, growing 3% year-over-year, and non-GAAP operating income of $4.8 million. Operating cash flow improved to approximately $13.6 million, up nearly $2 million year-over-year.
Improved Operating Efficiency
Non-GAAP operating income margin improved by 335 basis points from Q2 2024 and 1,013 basis points from Q2 2023. Non-GAAP gross margin strengthened to 80%, up 280 basis points year-over-year.
Strong Balance Sheet
Commerce ended Q2 with $136 million in cash, cash equivalents, and marketable securities, and reduced net debt position to $18 million, a 73% decrease year-over-year.
Notable Partnerships
Commerce announced partnerships with Perplexity, Google Cloud, and PROS to enhance AI-driven commerce capabilities. These partnerships aim to improve product data optimization, pricing, and quoting solutions.
Recognition and Client Wins
Commerce was awarded 24 out of 24 medals in the 2025 Paradigm B2B Combine for the third consecutive year. New clients include notable brands like URBN and Tapestry.
Negative Updates
Flat ARR Growth
Annual Revenue Run-rate (ARR) reached nearly $355 million, a year-over-year improvement of only 3%.
Enterprise Customer Count
The company has not yet returned to positive enterprise customer count growth, indicating challenges in expanding the customer base.
Sales and Marketing Efficiency
There is a need to improve the efficiency of sales and marketing spending, as highlighted by the executives.
Company Guidance
During the Commerce Second Quarter 2025 Earnings Call, the company provided guidance for both the third quarter of 2025 and the full year. They expect Q3 revenue to be between $85 million and $87 million, with non-GAAP operating income ranging from $2.3 million to $3.3 million. For the full year 2025, projected revenue is between $339.6 million and $346.6 million, while non-GAAP operating income is anticipated to fall between $19 million and $25 million. The company reported Q2 revenue of $84.4 million, up 3% year-over-year, and a non-GAAP operating income of $4.8 million. Their annual revenue run-rate (ARR) reached approximately $355 million, reflecting a 3% year-over-year growth. Non-GAAP gross margins improved to 80%, and operating cash flow increased to approximately $14 million. Commerce ended Q2 with $136 million in cash, cash equivalents, and marketable securities, while reducing net debt to $18 million, a 73% year-over-year decrease. They serve over 5,800 enterprise accounts, with average revenue per enterprise account rising to $46,403, a 9% year-over-year increase.Commerce.com Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
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Commerce.com Technical Analysis
Positive
4.72
Price Trends
4.83
Negative
4.99
Negative
5.74
Negative
Market Momentum
-0.04
Negative
50.46
Neutral
55.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMRC, the sentiment is Positive. The current price of 4.72 is above the 20-day moving average (MA) of 4.58, below the 50-day MA of 4.83, and below the 200-day MA of 5.74, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 55.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMRC.
Commerce.com Risk Analysis
Commerce.com disclosed 64 risk factors in its most recent earnings report. Commerce.com reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Commerce.com Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.25B | 9.89 | 21.16% | ― | 6.79% | 12.97% | |
63 Neutral | $1.65B | 34.20 | 75.95% | ― | -7.41% | ― | |
63 Neutral | $748.91M | 76.10 | 5.33% | ― | 4.51% | 8241.83% | |
63 Neutral | $1.47B | ― | -5.41% | ― | 5.96% | 50.29% | |
61 Neutral | $35.62B | 7.50 | -10.94% | 1.87% | 8.86% | -10.27% | |
60 Neutral | $1.14B | 182.58 | -0.50% | ― | 22.16% | -107.92% | |
58 Neutral | $370.57M | ― | -55.85% | ― | 4.06% | 57.50% |
* Technology Sector Average
Performance Comparison
CMRC
Commerce.com
4.72
-1.16
-19.73%
PRCH
Porch Group
16.28
14.90
1079.71%
YALA
Yalla Group
7.87
3.79
92.89%
SEMR
SEMrush Holdings
7.86
-5.98
-43.21%
VTEX
VTEX
4.03
-3.03
-42.92%
MLNK
MeridianLink
19.84
-2.84
-12.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.