To date, results have generally been above expectations, driven by better-than-expected 2Q22 sales and outlooks that have appropriately de-risked 2H22 estimates, analyst Scott Berg said. 

These positive factors have driven much better sentiment in our universe, with the IGV up 3.0% last week, in line with the NASDAQ (+3.0%) but marginally trailing the S&P 500 (+3.2%).

This week, Berg was most positive on BILL and GLBE. For BILL, he believes the higher FI customer additions in 1Q22 have investor optimism high that transaction growth can buck the 3Q22 deceleration. 

Berg anticipates an upside to 4QF22 revenue/EPS estimates. He believes that demand for digital B2B payment solutions remains positive overall, with no real macro impact.

For GLBE, 2Q22 Ecommerce trends were in line to modestly better than expectations, which he thinks drove upside to its more transactional model.

He expects a modest upside to the Street's GLBE estimates, driven by an Ecommerce macro that was mainly in line with slowing growth expectations but offset by strong new customer implementations. 

The revenue step down implies margins will suffer, but management is prioritizing profitable growth, expecting to achieve profitability in 2023. Berg believes focusing on these goals could yield early results and drive margin upside.

Price Action: NRDY shares traded higher by 3.35% at $3.55 on the last check Monday.