BigCommerce Holdings, Inc. (BIGC): Business Model Canvas [11-2024 Updated]

In the dynamic world of ecommerce, BigCommerce Holdings, Inc. (BIGC) stands out with its robust business model designed to cater to diverse customer needs. This blog post delves into the Business Model Canvas of BigCommerce, highlighting its key partnerships, activities, resources, and more. Discover how this innovative company creates value for small businesses and enterprises alike, ensuring scalability and success in the digital marketplace.

BigCommerce Holdings, Inc. (BIGC) - Business Model: Key Partnerships

Collaborations with payment processors and shipping providers

BigCommerce partners with various payment processors and shipping providers to enhance its e-commerce platform. Key partnerships include:

• PayPal: Integration allows customers to offer PayPal as a payment option, enhancing conversion rates.
• Stripe: Provides seamless payment processing for online transactions.
• Square: Facilitates omnichannel sales by integrating in-person and online sales.
• ShipStation: Offers shipping solutions to streamline fulfillment processes.

These collaborations are essential for providing customers with a robust, reliable checkout experience and efficient logistics solutions.

Integration with third-party applications for enhanced functionality

BigCommerce enhances its platform through integrations with third-party applications, enabling users to customize their online stores effectively. Notable integrations include:

• Mailchimp: For email marketing campaigns, helping businesses leverage customer data.
• QuickBooks: Streamlines financial management and accounting processes.
• Google Analytics: Provides insights into customer behavior and sales performance.
• Zapier: Allows connection with over 2,000 apps to automate workflows.

These integrations increase the platform's versatility, allowing merchants to tailor their operations to specific business needs, which is reflected in the growing number of partner and services revenue, which reached $20.9 million in Q3 2024.

Partnerships with technology solution providers for revenue sharing

BigCommerce collaborates with technology solution providers to create a revenue-sharing model that benefits both parties. Some partnerships include:

• Feedonomics: This partnership focuses on optimizing product feeds for better visibility and sales on marketplaces.
• BigCommerce for WordPress: Collaboration with WordPress enables users to leverage the content management system while utilizing BigCommerce's e-commerce capabilities.

These partnerships not only enhance the service offerings but also contribute to BigCommerce's revenue, with partner and services revenue increasing by 8.0% year-over-year.

Strategic alliances for co-marketing and co-selling initiatives

BigCommerce actively engages in strategic alliances for co-marketing and co-selling initiatives, which broaden its market reach. Examples include:

• Shopify: While a competitor, they have collaborated on industry events, sharing insights and best practices.
• Adobe: Joint initiatives to integrate Adobe's marketing solutions with BigCommerce, improving user experience.

These alliances are crucial for expanding brand awareness and generating leads, ultimately leading to increased sales and customer acquisition. As of September 30, 2024, BigCommerce reported an ARR of $347.8 million, showcasing the effectiveness of these partnerships.

Partnership Type	Partner	Functionality	Impact on Revenue
Payment Processor	PayPal	Payment options	Enhanced conversion rates
Shipping Provider	ShipStation	Streamlined fulfillment	Increased customer satisfaction
Third-party Application	Mailchimp	Email marketing	Improved marketing effectiveness
Technology Provider	Feedonomics	Product feed optimization	Higher marketplace sales
Strategic Alliance	Adobe	Integrated marketing solutions	Increased brand visibility

BigCommerce Holdings, Inc. (BIGC) - Business Model: Key Activities

Development and maintenance of the ecommerce platform

BigCommerce focuses on enhancing its ecommerce platform with continuous updates and feature additions. As of September 30, 2024, the company reported total revenue of $245.9 million for the nine months ended, up from $225.2 million in the same period of the previous year, reflecting a growth of 9.2%. Subscription solutions revenue specifically increased to $185.6 million, a 10.0% increase from $168.7 million.

Customer support and success management

The company emphasizes robust customer support, which is crucial for retaining clients. For the nine months ended September 30, 2024, BigCommerce's general and administrative expenses, which include customer support costs, were $46.8 million, compared to $45.3 million for the same period in 2023. Additionally, the company has focused on transitioning customers from month-to-month contracts to annual contracts, enhancing cash flow and reducing churn rates.

Marketing and sales activities to acquire new customers

Marketing and sales expenses for BigCommerce amounted to $100.0 million for the nine months ended September 30, 2024, slightly down from $105.9 million in the previous year. This reduction is part of the company's cost-cutting measures implemented during its 2023 restructuring. Despite this, the company has successfully increased its average revenue per account (ARPA) to $43,600 as of September 30, 2024, from $40,431 a year earlier.

Research and development for continuous product innovation

BigCommerce invests significantly in research and development (R&D) to innovate its product offerings. R&D expenses for the nine months ended September 30, 2024, were reported at $61.1 million, down from $63.9 million in 2023. The company continues to focus on enhancing its platform's capabilities, with the total annual recurring revenue (ARR) increasing to $347.8 million as of September 30, 2024.

Key Metrics	Q3 2024	Q3 2023	Change (%)
Total Revenue	$83.7 million	$78.0 million	7.3%
Subscription Solutions Revenue	$62.8 million	$58.7 million	7.0%
Partner and Services Revenue	$20.9 million	$19.3 million	8.0%
ARPA	$43,600	$40,431	5.4%
R&D Expenses	$61.1 million	$63.9 million	-4.4%
Sales and Marketing Expenses	$100.0 million	$105.9 million	-5.6%

BigCommerce Holdings, Inc. (BIGC) - Business Model: Key Resources

Proprietary ecommerce platform technology

BigCommerce operates a proprietary ecommerce platform that enables businesses to create and manage online stores. As of September 30, 2024, the company reported an Annual Recurring Revenue (ARR) of approximately $347.79 million. The platform is designed to support various business sizes, from startups to established enterprises, facilitating transactions and customer interactions effectively.

Experienced workforce in software development and customer service

BigCommerce employs a skilled workforce, with a significant portion dedicated to software development and customer service. As of September 30, 2024, the company had approximately 1,000 employees. Investment in talent is reflected in the research and development expenses, which totaled $61.12 million for the nine months ended September 30, 2024. This focus on human resources allows BigCommerce to continuously innovate and enhance its platform offerings.

Strong brand reputation in the ecommerce space

BigCommerce has established a strong brand reputation within the ecommerce industry, recognized for its user-friendly platform and robust features. The company's customer base includes over 5,892 enterprise accounts as of September 30, 2024. This reputation is supported by a net revenue retention rate of 100% for enterprise accounts, indicating a strong ability to maintain and expand existing customer relationships.

Financial resources for marketing and operational investments

As of September 30, 2024, BigCommerce reported total cash and cash equivalents of $35.44 million and marketable securities amounting to $132.96 million. The company also issued $150 million in convertible senior notes in August 2024, enhancing its financial flexibility. This capital enables BigCommerce to invest in marketing initiatives and operational improvements, crucial for sustaining growth in a competitive market.

Key Resource	Details	Financial Data
Proprietary Ecommerce Platform	Supports online store creation and management	ARR: $347.79 million
Experienced Workforce	Approximately 1,000 employees focused on R&D and customer service	R&D Expenses: $61.12 million
Strong Brand Reputation	5,892 enterprise accounts; 100% net revenue retention	N/A
Financial Resources	Cash and marketable securities for investments	Cash: $35.44 million; Marketable Securities: $132.96 million

BigCommerce Holdings, Inc. (BIGC) - Business Model: Value Propositions

Comprehensive and flexible ecommerce solutions for businesses of all sizes

BigCommerce offers a robust software-as-a-service (SaaS) platform that enables businesses to create and manage their online stores efficiently. The platform supports businesses across various sizes, from small startups to large enterprises, providing a scalable solution that can adapt to growing demands. As of September 30, 2024, the annual recurring revenue (ARR) was approximately $347.8 million, marking a growth from $332.2 million year-over-year.

High-performance platform with multi-tenant architecture

The multi-tenant architecture of BigCommerce ensures that all customers benefit from the latest features and updates without the need for individual installations. This architecture contributes to high performance and security, which is crucial for ecommerce operations. The gross margin for the company stood at 76.4% for the nine months ended September 30, 2024, reflecting the efficiency of its operational model.

Accessibility to a wide range of integrated applications

BigCommerce provides access to a comprehensive ecosystem of integrated applications, enhancing its platform's functionality. This includes partnerships with leading payment gateways, shipping solutions, and marketing tools, enabling merchants to customize their stores effectively. The company reported $60.3 million in partner and services revenue for the nine months ended September 30, 2024, up 6.6% from the prior year.

Focus on customer success with tailored support and services

Customer success is a core focus for BigCommerce, which provides tailored support and professional services to its clients. This includes implementation consulting and ongoing support to ensure that businesses can leverage the full capabilities of the platform. The average revenue per account (ARPA) for the company was $43,600 as of September 30, 2024, indicating strong customer engagement and value derived from its services.

Metric	Q3 2024	Q3 2023	Change
Annual Recurring Revenue (ARR)	$347.8 million	$332.2 million	4.2%
Subscription Solutions Revenue	$185.6 million	$168.7 million	10.0%
Partner and Services Revenue	$60.3 million	$56.6 million	6.6%
Gross Margin	76.4%	75.5%	0.9%
Average Revenue Per Account (ARPA)	$43,600	$40,431	5.4%

BigCommerce Holdings, Inc. (BIGC) - Business Model: Customer Relationships

Dedicated customer success teams to enhance user experience

BigCommerce has established dedicated customer success teams aimed at enhancing the user experience for its customers. These teams focus on providing ongoing support and guidance, ensuring that clients can effectively utilize the platform for their e-commerce needs. As of September 30, 2024, the company reported an ARR (Annual Recurring Revenue) of $347.8 million, with a significant portion attributable to the effectiveness of these customer success initiatives.

Regular communication through newsletters and updates

BigCommerce maintains regular communication with its customer base through newsletters and product updates. This strategy helps keep users informed about new features, updates, and best practices. The company’s revenue from subscription solutions for the three months ended September 30, 2024, was $62.8 million, reflecting a 7.0% increase year-over-year, partially attributed to improved customer engagement and satisfaction through these communications.

Community engagement through forums and user groups

Community engagement is a critical aspect of BigCommerce's approach to customer relationships. The company fosters user groups and forums where customers can share insights, seek advice, and connect with peers. This community-building effort is reflected in the number of enterprise accounts, which stood at 5,892 as of September 30, 2024, contributing to a robust ecosystem that enhances customer loyalty and retention.

Personalized support for enterprise customers

BigCommerce offers personalized support specifically tailored for enterprise customers. This includes dedicated account management and custom solutions to meet the unique needs of larger clients. As of September 30, 2024, the ARR attributable to enterprise accounts was $256.9 million, representing 74% of the total ARR, highlighting the importance of personalized service in driving revenue growth.

Metric	Value as of September 30, 2024
Annual Recurring Revenue (ARR)	$347.8 million
Subscription Solutions Revenue	$62.8 million
Number of Enterprise Accounts	5,892
ARR from Enterprise Accounts	$256.9 million
Percentage of ARR from Enterprise Accounts	74%

BigCommerce Holdings, Inc. (BIGC) - Business Model: Channels

Direct sales through company website and sales team

BigCommerce generates significant revenue through direct sales from its company website, which serves as a primary sales channel. For the nine months ended September 30, 2024, the company reported total revenue of $245.9 million, with $185.6 million attributed to subscription solutions, which includes direct sales . The sales team is instrumental in converting leads from various marketing efforts into paying customers, focusing on enterprise and mid-market clients. The average revenue per account (ARPA) as of September 30, 2024, was $43,600 .

Partner channels through technology integrations

BigCommerce leverages partner channels, particularly through technology integrations with various platforms. For the nine months ended September 30, 2024, partner and services revenue increased by $3.7 million to $60.3 million, representing a growth of 6.6% year-over-year . The company collaborates with partners to enhance its eCommerce solutions, providing customers with integrated tools and services that complement its platform. This strategy not only drives additional revenue but also enhances customer retention through expanded service offerings.

Digital marketing campaigns targeting ecommerce businesses

Digital marketing remains a cornerstone of BigCommerce's customer acquisition strategy. The company invested $33.1 million in sales and marketing for the three months ended September 30, 2024, reflecting a decrease of 8.6% compared to the previous year . These campaigns are aimed at attracting eCommerce businesses by showcasing the platform's capabilities, including SEO, multi-channel selling, and customizability. The total revenue from digital marketing efforts contributed significantly to the overall revenue growth of 9.2% for the nine months ended September 30, 2024 .

Webinars and events to showcase product features

BigCommerce hosts webinars and events to demonstrate its product features and educate potential customers about eCommerce best practices. These initiatives are designed to engage with the target audience directly, providing insights into how BigCommerce can address their specific needs. The company’s efforts in this area help establish thought leadership in the eCommerce space, fostering a community that can lead to increased customer acquisition. The effectiveness of these events is reflected in the growth of enterprise accounts, which numbered 5,892 as of September 30, 2024 .

Channel	Revenue (9 Months Ended September 30, 2024)	Growth Rate	ARPA
Direct Sales	$185.6 million	10.0%	$43,600
Partner Channels	$60.3 million	6.6%	N/A
Sales and Marketing	$33.1 million	-8.6%	N/A
Enterprise Accounts	N/A	N/A	$43,600

BigCommerce Holdings, Inc. (BIGC) - Business Model: Customer Segments

Small to medium-sized businesses looking for scalable solutions

BigCommerce Holdings, Inc. targets small to medium-sized businesses (SMBs) that require scalable ecommerce solutions. As of September 30, 2024, the company reported an Annual Recurring Revenue (ARR) of $347.8 million, with a significant portion derived from SMBs. The average revenue per account (ARPA) for these segments was approximately $43,600.

Enterprise-level customers requiring advanced features

BigCommerce has established a strong presence among enterprise-level customers, with 5,892 enterprise accounts as of September 30, 2024. The ARR attributable to these accounts was $256.9 million, representing 74% of the total ARR. This segment values advanced features and customizability, which BigCommerce provides through its platform.

B2C and B2B ecommerce businesses

BigCommerce serves both B2C (business-to-consumer) and B2B (business-to-business) ecommerce businesses. The subscription solutions revenue for the nine months ended September 30, 2024, increased by 10.0% year-over-year to $185.6 million. This growth reflects the company's ability to cater to diverse ecommerce needs across different business models.

Businesses needing integrated marketing and sales solutions

Businesses looking for integrated marketing and sales solutions are another key customer segment. BigCommerce's partner and services revenue increased by 6.6% to $60.3 million for the nine months ended September 30, 2024. This growth indicates that many businesses are leveraging BigCommerce's platform for comprehensive marketing strategies that enhance their sales efforts.

Customer Segment	Key Statistics	Revenue Contribution
Small to Medium-sized Businesses	ARR: $347.8 million; ARPA: $43,600	Significant portion of total ARR
Enterprise Customers	Number of Accounts: 5,892; ARR: $256.9 million	74% of total ARR
B2C and B2B Ecommerce Businesses	Subscription Revenue Growth: 10.0%	$185.6 million for 9 months
Integrated Marketing and Sales Solutions	Partner and Services Revenue Growth: 6.6%	$60.3 million for 9 months

BigCommerce Holdings, Inc. (BIGC) - Business Model: Cost Structure

Research and Development Expenses for Platform Enhancements

For the three months ended September 30, 2024, BigCommerce reported research and development expenses of $20.8 million, a decrease of 4.0% from $21.7 million for the same period in 2023. Over the nine months ended September 30, 2024, these expenses totaled $61.1 million, down 4.4% from $64.0 million in the prior year. As a percentage of total revenue, R&D expenses represented 24.9% for both the three and nine months ended September 30, 2024, down from 27.8% and 28.4% respectively, in the same periods of 2023.

Sales and Marketing Costs to Promote Services

Sales and marketing expenses for the three months ended September 30, 2024, were $33.1 million, a decline of 8.6% from $36.3 million in 2023. For the nine months, these costs decreased by 5.6% to $100.0 million from $105.9 million. As a percentage of total revenue, sales and marketing expenses were 39.6% for the three months and 40.7% for the nine months, compared to 46.5% and 47.0% in the same periods of 2023.

Operational Costs Including Hosting and Support Services

BigCommerce's operational costs, which include hosting and support services, contributed to a cost of revenue amounting to $19.9 million for the three months ended September 30, 2024, up from $19.1 million in 2023. For the nine-month period, these costs increased to $58.1 million from $55.3 million, reflecting a 5.2% increase. The total cost of revenue as a percentage of revenue was 23.7% for the three months and 23.6% for the nine months.

Personnel Costs for Customer Support and Development Teams

Personnel-related costs, including stock-based compensation, are significant for BigCommerce. For the three months ended September 30, 2024, personnel costs in the cost of revenue were $1.1 million, down from $1.3 million in 2023. Over the nine-month period, these costs decreased to $2.8 million from $3.8 million. Sales and marketing personnel costs were $3.3 million for the three months and $8.3 million for the nine months. Research and development personnel costs were $3.8 million for the three months and $10.5 million for the nine months. General and administrative personnel costs were reported at $2.7 million for the three months and $7.9 million for the nine months.

Cost Category	Three Months Ended September 30, 2024 (in thousands)	Three Months Ended September 30, 2023 (in thousands)	Nine Months Ended September 30, 2024 (in thousands)	Nine Months Ended September 30, 2023 (in thousands)
Research and Development	$20,841	$21,703	$61,116	$63,951
Sales and Marketing	$33,140	$36,253	$99,997	$105,898
Cost of Revenue	$19,863	$19,054	$58,113	$55,256
Personnel Costs (Total)	$10,874	$12,091	$29,367	$31,295

BigCommerce Holdings, Inc. (BIGC) - Business Model: Revenue Streams

Subscription fees from various pricing plans

The primary revenue stream for BigCommerce comes from subscription fees. For the nine months ended September 30, 2024, subscription solutions revenue reached $185.6 million, an increase of 10.0% from $168.7 million in the same period of 2023 . This growth is attributed to increased activity in enterprise and mid-market segments, as well as contributions from Feedonomics.

The breakdown of subscription revenue for the three months ended September 30, 2024, shows $62.8 million, up from $58.7 million in the previous year, reflecting a growth of 7.0% .

Professional services for implementation and consulting

BigCommerce also generates revenue through professional services, which include implementation and consulting. For the nine months ended September 30, 2024, the revenue from partner and services amounted to $60.3 million, a 6.6% increase from $56.6 million in the prior year . This segment reflects the company's commitment to enhancing customer experience and operational efficiency.

Revenue sharing from partner integrations

Revenue sharing from partner integrations contributes significantly to BigCommerce's revenue model. As of September 30, 2024, total revenue from partner and services included $20.9 million for the third quarter, compared to $19.3 million for the same period in 2023, marking an increase of 8.0% . This growth is largely driven by the expansion of strategic partnerships and integrations that enhance the platform's capabilities.

Non-recurring revenue from additional services and features

In addition to recurring subscription fees and professional services, BigCommerce earns non-recurring revenue from additional features and services offered to customers. For the nine months ending September 30, 2024, the total revenue generated was $245.9 million, representing an increase of 9.2% from $225.2 million in the previous year . This includes one-time fees for advanced features and custom solutions that cater to specific customer needs.

Revenue Stream	Q3 2024 Revenue	Q3 2023 Revenue	Growth (%)	9M 2024 Revenue	9M 2023 Revenue	Growth (%)
Subscription Solutions	$62.8 million	$58.7 million	7.0%	$185.6 million	$168.7 million	10.0%
Partner and Services	$20.9 million	$19.3 million	8.0%	$60.3 million	$56.6 million	6.6%
Total Revenue	$83.7 million	$78.0 million	7.3%	$245.9 million	$225.2 million	9.2%

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.