BigCommerce Holdings, Inc. (BIGC) Bundle
A Brief History of BigCommerce
BigCommerce Holdings, Inc. has made significant strides in the e-commerce platform space since its inception. As of 2024, the company has established itself as a leader in providing software solutions that enable businesses to create and manage online stores.
Company Overview
Founded in 2009, BigCommerce has evolved its offerings to cater to a diverse range of businesses, from small startups to large enterprises. The company went public in August 2020 and has since focused on expanding its customer base and enhancing its platform capabilities.
Financial Performance
As of September 30, 2024, BigCommerce reported total revenue of $245.9 million for the nine months ended September 30, 2024, marking a 9.2% increase from $225.2 million in the same period of 2023. This growth was driven by increased subscription solutions and partner services revenue.
| Period | Total Revenue (in millions) | Subscription Solutions Revenue (in millions) | Partner and Services Revenue (in millions) |
|---|---|---|---|
| Q3 2024 | $83.7 | $62.8 | $20.9 |
| Q3 2023 | $78.0 | $58.7 | $19.3 |
| 9M 2024 | $245.9 | $185.6 | $60.3 |
| 9M 2023 | $225.2 | $168.7 | $56.6 |
Cost Management and Restructuring
BigCommerce has undertaken several restructuring initiatives to improve operational efficiency. For the nine months ended September 30, 2024, the company incurred restructuring charges of $12.5 million, compared to $6.2 million in the same period of 2023. These charges were primarily related to severance costs and impairment of software assets as part of its 2024 Restructure.
Cash Flow and Liquidity
As of September 30, 2024, BigCommerce reported a net cash provided by operating activities of $13.9 million, a significant improvement compared to a net cash used of ($37.5 million) in the prior year. This increase was attributed to cost reductions and a focus on operational discipline.
| Cash Flow Activity | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Net Cash from Operating Activities | $5,573 | ($31,429) | $13,894 | ($37,522) |
| Net Cash from Investing Activities | $9,251 | $26,399 | $62,644 | $14,000 |
| Net Cash from Financing Activities | ($112,077) | $285 | ($112,428) | $1,381 |
Debt and Financing
In August 2024, BigCommerce issued $150 million in aggregate principal amount of new 7.50% convertible senior notes due 2028. This financing is part of the company’s strategy to manage its capital structure effectively while supporting growth initiatives.
Market Position and Future Outlook
BigCommerce continues to expand its market presence, focusing on enhancing its platform’s functionalities and customer support. The company’s annual recurring revenue (ARR) as of September 30, 2024, reached $347.8 million, showing a steady growth trajectory in its subscription-based revenue model.
| Metric | Value (as of September 30, 2024) |
|---|---|
| Annual Recurring Revenue (ARR) | $347.8 million |
| Number of Enterprise Accounts | 5,892 |
| Average Revenue Per Account | $43,600 |
As the company moves forward, it aims to leverage its technological advancements and robust customer engagement strategies to capitalize on the growing e-commerce market.
A Who Owns BigCommerce Holdings, Inc. (BIGC)
Major Shareholders
As of 2024, BigCommerce Holdings, Inc. (BIGC) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | Vanguard Group, Inc. | 6,975,000 | 9.0% |
| Institutional Investor | BlackRock, Inc. | 6,534,000 | 8.4% |
| Institutional Investor | FMR LLC (Fidelity) | 5,120,000 | 6.6% |
| Individual Investor | Brent Bellm (CEO) | 1,200,000 | 1.5% |
| Individual Investor | Other Insiders | 2,500,000 | 3.2% |
| Public Float | Various Public Investors | 60,000,000 | 77.3% |
Stock Performance
BigCommerce's stock performance has shown fluctuations typical of the tech sector. As of the most recent quarter ending September 30, 2024, the closing price of BIGC was $15.00, reflecting a market capitalization of approximately $1.17 billion.
Recent Financial Highlights
For the three months ended September 30, 2024, BigCommerce reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Revenue | $83,710 |
| Net Loss | $(6,993) |
| Gross Profit | $63,847 |
| Operating Expenses | $83,064 |
| Basic Net Loss Per Share | $(0.09) |
Ownership Changes and Trends
In the past year, BigCommerce has seen a shift in its shareholder composition, particularly among institutional investors. The percentage of shares held by institutions increased from 55% to 60%, indicating growing confidence among large investors in the company's business model and growth prospects.
Recent Developments
In August 2024, BigCommerce issued $150 million in convertible senior notes due 2028 at an interest rate of 7.50%. This move is aimed at strengthening its capital structure and funding growth initiatives.
Conclusion
As of 2024, BigCommerce Holdings, Inc. continues to attract significant institutional interest while maintaining a solid foundation in terms of leadership and strategic financial management.
BigCommerce Holdings, Inc. (BIGC) Mission Statement
Overview
BigCommerce Holdings, Inc. aims to provide a comprehensive e-commerce platform that empowers businesses of all sizes to create, manage, and grow their online stores. The company emphasizes innovation, customer success, and scalability in its mission to drive growth for its clients in a competitive digital landscape.
Current Mission Statement
The official mission statement of BigCommerce as of 2024 focuses on enabling merchants to succeed in their e-commerce endeavors through a robust, flexible, and user-friendly platform. The company is committed to delivering outstanding service, fostering growth, and providing tools that allow businesses to optimize their online presence.
Financial Performance Indicators
As of September 30, 2024, BigCommerce reported total revenue of $83.7 million for the third quarter, reflecting a 7.3% increase from $78.0 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue was $245.9 million, up 9.2% from $225.2 million year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenue | $83.7M | $78.0M | 7.3% | $245.9M | $225.2M | 9.2% |
| Subscription Solutions Revenue | $62.8M | $58.7M | 7.0% | $185.6M | $168.7M | 10.0% |
| Partner and Services Revenue | $20.9M | $19.3M | 8.0% | $60.3M | $56.6M | 6.6% |
Customer Metrics
As of September 30, 2024, BigCommerce reported the following key customer metrics:
| Metric | Value |
|---|---|
| Annual Recurring Revenue (ARR) | $347.8M |
| Subscription ARR | $263.9M |
| Number of Enterprise Accounts | 5,892 |
| ARR from Enterprise Accounts | $256.9M |
| Average Revenue Per Account (ARPA) | $43,600 |
Strategic Focus Areas
BigCommerce's strategic focus areas include:
- Enhancing product delivery and increasing sales capacity.
- Improving operating margins through cost-reduction strategies.
- Fostering partnerships that drive customer growth.
- Investing in technology to provide advanced e-commerce solutions.
Recent Developments
In 2024, BigCommerce initiated a restructuring plan aimed at optimizing operations and aligning costs with current market conditions. The company expects to incur restructuring charges of approximately $9.8 million in the third quarter related to workforce reductions and lease terminations.
| Restructuring Charges | Amount (in millions) |
|---|---|
| Q3 2024 Restructuring Charges | $9.8M |
| Estimated Future Restructuring Costs | $3.5M - $5.7M |
Conclusion on Mission Alignment
BigCommerce's mission is closely aligned with its operational strategies and financial performance metrics, reflecting a commitment to customer success and sustainable growth in the e-commerce sector.
How BigCommerce Holdings, Inc. (BIGC) Works
Company Overview
BigCommerce Holdings, Inc. (BIGC) is a publicly traded company that provides software solutions for e-commerce businesses. As of September 30, 2024, the company reported significant revenue growth driven by its subscription solutions and partner services.
Financial Performance
For the three months ended September 30, 2024, BigCommerce generated total revenue of $83.7 million, an increase from $78.0 million in the same period of 2023, reflecting a growth of 7.3%. For the nine months ended September 30, 2024, total revenue reached $245.9 million, up from $225.2 million, marking a 9.2% increase.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $83.7 million | $78.0 million | $5.7 million | 7.3% |
| Subscription Solutions Revenue | $62.8 million | $58.7 million | $4.1 million | 7.0% |
| Partner and Services Revenue | $20.9 million | $19.3 million | $1.6 million | 8.0% |
| Net Loss | $(6.99) million | $(20.31) million | $13.32 million | 65.6% |
Revenue Breakdown
The revenue is primarily derived from two sources: subscription solutions and partner services. For the nine months ended September 30, 2024, subscription solutions revenue was $185.6 million, while partner services revenue was $60.3 million.
| Revenue Source | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Subscription Solutions | $185.6 million | $168.7 million | $16.9 million | 10.0% |
| Partner and Services | $60.3 million | $56.6 million | $3.7 million | 6.6% |
Operating Expenses
BigCommerce's total operating expenses for the three months ended September 30, 2024, were $83.1 million, compared to $81.2 million in the same period of 2023. Key components of operating expenses included:
| Expense Category | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $33.1 million | $36.3 million | $(3.2) million | (8.8)% |
| Research and Development | $20.8 million | $21.7 million | $(0.9) million | (4.0)% |
| General and Administrative | $16.4 million | $14.3 million | $2.1 million | 14.6% |
| Restructuring Charges | $9.9 million | $5.8 million | $4.1 million | 70.7% |
Net Loss and Earnings Per Share
BigCommerce reported a net loss of $(6.99) million for Q3 2024, significantly reduced from $(20.31) million in Q3 2023. The basic net loss per share was $(0.09) compared to $(0.27) in the prior year.
Key Business Metrics
As of September 30, 2024, BigCommerce reported the following key metrics:
| Metric | Value |
|---|---|
| Annual Recurring Revenue (ARR) | $347.8 million |
| Subscription ARR | $263.9 million |
| Number of Enterprise Accounts | 5,892 |
| Average Revenue Per Account (ARPA) | $43,600 |
Cash Flow and Financing Activities
During the nine months ending September 30, 2024, BigCommerce's net cash used in financing activities was $(112.4) million, primarily due to repayments of convertible notes. The company issued $150.0 million in convertible senior notes due 2028 in August 2024.
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $13.9 million |
| Net Cash Provided by Investing Activities | $62.6 million |
| Net Cash Used in Financing Activities | $(112.4) million |
Future Outlook
BigCommerce aims to enhance its product offerings and expand its market presence while managing costs effectively. The restructuring plan initiated in 2024 is expected to improve operational efficiency and support long-term growth strategies.
How BigCommerce Holdings, Inc. (BIGC) Makes Money
Revenue Streams
BigCommerce Holdings, Inc. generates revenue primarily through two sources: Subscription Solutions and Partner and Services.
Subscription Solutions
Subscription solutions revenue consists mainly of platform subscription fees and recurring professional services. This revenue is charged monthly, quarterly, or annually based on the store's subscription plan. For the three months ended September 30, 2024, subscription solutions revenue was:
| Period | Subscription Solutions Revenue (in thousands) |
|---|---|
| Q3 2024 | $62,826 |
| Q3 2023 | $58,709 |
| 9M 2024 | $185,582 |
| 9M 2023 | $168,652 |
Subscription solutions revenue increased by $4.1 million (7.0%) in Q3 2024 compared to Q3 2023 and by $16.9 million (10.0%) for the nine months ended September 30, 2024, compared to the same period in 2023.
Partner and Services Revenue
This segment includes revenue from partner technology integrations, marketing services, and revenue share agreements. For the same periods, partner and services revenue was:
| Period | Partner and Services Revenue (in thousands) |
|---|---|
| Q3 2024 | $20,884 |
| Q3 2023 | $19,336 |
| 9M 2024 | $60,317 |
| 9M 2023 | $56,593 |
The partner and services revenue increased by $1.5 million (8.0%) in Q3 2024 and by $3.7 million (6.6%) for the nine months ended September 30, 2024, compared to the same period in 2023.
Total Revenue
The total revenue for BigCommerce for the three months ended September 30, 2024, was:
| Period | Total Revenue (in thousands) |
|---|---|
| Q3 2024 | $83,710 |
| Q3 2023 | $78,045 |
| 9M 2024 | $245,899 |
| 9M 2023 | $225,245 |
Total revenue increased by $5.7 million (7.3%) in Q3 2024 compared to Q3 2023 and by $20.7 million (9.2%) for the nine months ended September 30, 2024, compared to the same period in 2023.
Cost of Revenue and Gross Profit
For the three months ended September 30, 2024, the cost of revenue was:
| Period | Cost of Revenue (in thousands) |
|---|---|
| Q3 2024 | $19,863 |
| Q3 2023 | $19,054 |
| 9M 2024 | $58,113 |
| 9M 2023 | $55,256 |
The gross profit for the same period was:
| Period | Gross Profit (in thousands) |
|---|---|
| Q3 2024 | $63,847 |
| Q3 2023 | $58,991 |
| 9M 2024 | $187,786 |
| 9M 2023 | $169,989 |
Gross margin percentage for Q3 2024 was 76.3%, up from 75.6% in Q3 2023.
Operating Expenses
For the three months ended September 30, 2024, the operating expenses were:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Sales and Marketing | $33,140 | $36,253 |
| Research and Development | $20,841 | $21,703 |
| General and Administrative | $16,435 | $14,342 |
Operating expenses totaled $83,064 thousand for Q3 2024, compared to $81,193 thousand in Q3 2023.
Net Loss
For the three months ended September 30, 2024, the net loss was:
| Period | Net Loss (in thousands) |
|---|---|
| Q3 2024 | $(6,993) |
| Q3 2023 | $(20,310) |
| 9M 2024 | $(24,640) |
| 9M 2023 | $(61,495) |
The significant reduction in net loss reflects improved revenue performance alongside cost-cutting measures implemented during restructuring.
Remaining Performance Obligation
As of September 30, 2024, BigCommerce had $184.2 million in remaining performance obligations:
| Obligation Type | Current (in thousands) | Noncurrent (in thousands) | Total (in thousands) |
|---|---|---|---|
| Remaining Performance Obligation | $109,420 | $74,818 | $184,238 |
Approximately 60% of the remaining performance obligations are expected to be recognized as revenue in the next 12 months.
Conclusion on Financial Position
As of September 30, 2024, the financial position of BigCommerce Holdings, Inc. indicates a revenue growth trajectory supported by strong subscription services and strategic partnerships.
BigCommerce Holdings, Inc. (BIGC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- BigCommerce Holdings, Inc. (BIGC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BigCommerce Holdings, Inc. (BIGC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BigCommerce Holdings, Inc. (BIGC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.