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BigCommerce Holdings (BIGC)
NASDAQ:BIGC
Top Page
BigCommerce Holdings
(NASDAQ:BIGC)63Neutral
Positive Factors
Cost Efficiency
Efforts to streamline the organization are leading to steadily improving margins and cash flow, reflecting more efficient growth.
Leadership Changes
A revamped leadership team is in place with a new CEO, CMO, and CRO, as well as new leaders in Engineering and RevOps.
Strategic Focus
BigCommerce is implementing strategic changes to re-accelerate growth, focusing on integrating product capabilities and targeting key offerings like B2B, which has shown significant growth.
Negative Factors
Earnings Guidance
The 2025 revenue guidance is underwhelming with a growth target of 4%, which is a deceleration from 2024.
Revenue Growth
BigCommerce's revenue growth expectations for the next year are below the current market expectations, indicating challenges in meeting targets.
BigCommerce Holdings (BIGC) vs. S&P 500 (SPY)
Market Cap
$531.34M
Dividend YieldN/A
Average Volume (3M)970.69K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth7.61%
EPS Growth59.62%
CountryUS
Employees1,321
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)-0.35
Shares Outstanding78,600,000
10 Day Avg. Volume1,479,316
30 Day Avg. Volume970,686
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.61
Price to Cash Flow (P/CF)23.80
P/FCF Ratio20.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.14Price Target Upside20.06% Upside
Rating ConsensusHold
Number of Analyst Covering9
BigCommerce Holdings Business Overview & Revenue Model
Company DescriptionBigCommerce Holdings, Inc. (BIGC) is a leading software-as-a-service (SaaS) company that provides a comprehensive e-commerce platform for businesses of all sizes. The company operates primarily in the technology sector, focusing on enabling online merchants to build and manage their online stores. BigCommerce's core offerings include customizable website templates, shopping cart functionalities, SEO tools, and integrations with third-party applications, catering to retailers and brands seeking to establish and grow their digital presence.
How the Company Makes MoneyBigCommerce generates revenue primarily through a subscription-based model, where customers pay monthly or annual fees to access its e-commerce platform. The company offers various pricing tiers, which cater to different business sizes and requirements, ranging from small startups to large enterprises. In addition to subscription fees, BigCommerce earns money through transaction fees on sales processed via its platform, as well as from partnerships and integrations with payment processors and other third-party services. These strategic partnerships enhance the platform's capabilities and can drive additional revenue through revenue-sharing agreements.
BigCommerce Holdings Financial Statement Overview
Summary
BigCommerce Holdings demonstrates strong revenue growth and efficient cost management, yet struggles with profitability and high leverage. Positive cash flow trends are encouraging, but the high debt levels and negative net income pose risks to financial stability. Continued focus on reducing losses and managing debt will be crucial for sustainable growth.Income Statement
BigCommerce Holdings has shown a steady growth in revenue with a TTM total revenue of $332.93 million, up from $309.39 million in 2023, indicating a positive trend. The gross profit margin remains strong at 75.2% for TTM, suggesting efficient cost management relative to revenue. However, negative EBIT and net profit margins, at -11.5% and -8.1% respectively, highlight ongoing challenges in achieving profitability.70
Positive
Balance Sheet
The company’s balance sheet shows a high debt-to-equity ratio of 6.61, indicating significant leverage which could pose risks. However, the equity ratio of 9.8% suggests a small but positive equity position. Return on equity remains negative due to net losses, pointing to continued pressure on shareholder returns.55
Neutral
Cash Flow
BigCommerce has improved its operating cash flow to $26.25 million in TTM, turning positive from previous deficits. The free cash flow of $22.53 million also indicates better cash generation capabilities. However, the operating cash flow to net income ratio is below 1, reflecting challenges in converting earnings into cash flow.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 332.93M | 309.39M | 279.07M | 219.85M | 152.37M | Gross Profit |
| 255.34M | 235.19M | 209.09M | 171.38M | 118.24M | EBIT |
| -41.68M | -72.44M | -98.02M | -52.64M | -38.70M | EBITDA |
| -7.10M | -49.31M | -125.17M | -69.73M | -31.35M | Net Income Common Stockholders |
| -27.03M | -64.67M | -139.92M | -76.68M | -37.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 178.16M | 270.13M | 303.51M | 399.88M | 219.45M | Total Assets |
| 340.29M | 444.06M | 474.06M | 555.46M | 276.63M | Total Debt |
| 220.58M | 350.31M | 350.11M | 348.41M | 15.85M | Net Debt |
| 131.71M | 278.59M | 258.54M | 50.85M | -203.60M | Total Liabilities |
| 306.92M | 418.52M | 428.38M | 417.17M | 59.87M | Stockholders Equity |
| 33.37M | 25.53M | 45.67M | 138.29M | 216.76M |
| Cash Flow | Free Cash Flow | |||
| 22.53M | -28.42M | -94.55M | -43.60M | -28.49M | Operating Cash Flow |
| 26.25M | -24.24M | -89.36M | -40.30M | -26.53M | Investing Cash Flow |
| 105.29M | 2.82M | -116.53M | -186.88M | -1.96M | Financing Cash Flow |
| -114.04M | 1.24M | 209.00K | 305.27M | 239.95M |
BigCommerce Holdings Technical Analysis
Positive
6.78
Price Trends
6.46
Positive
6.40
Positive
6.67
Positive
Market Momentum
0.10
Positive
51.95
Neutral
50.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIGC, the sentiment is Positive. The current price of 6.78 is below the 20-day moving average (MA) of 6.79, above the 50-day MA of 6.46, and above the 200-day MA of 6.67, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 50.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BIGC.
BigCommerce Holdings Risk Analysis
BigCommerce Holdings disclosed 67 risk factors in its most recent earnings report. BigCommerce Holdings 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
BigCommerce Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.16T | 37.73 | 24.29% | ― | 10.99% | 91.61% | |
73 Outperform | $31.07B | 16.91 | 34.29% | 1.62% | 2.79% | -23.30% | |
64 Neutral | $10.48B | 84.65 | -46.79% | ― | 12.63% | ― | |
63 Neutral | $531.34M | ― | -91.78% | ― | 7.61% | 59.62% | |
63 Neutral | $5.30B | 21.08 | -39.97% | ― | 2.18% | 5.77% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
BIGC
BigCommerce Holdings
6.78
-0.78
-10.32%
AMZN
Amazon
208.36
31.54
17.84%
EBAY
eBay
66.55
16.74
33.61%
WIX
Wix
197.53
54.77
38.37%
ETSY
Etsy
50.00
-18.40
-26.90%
BigCommerce Holdings Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 1.35% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a company in transition, with significant improvements in profitability and operational efficiency. While leadership and organizational changes were highlighted as positive steps, challenges in achieving revenue growth and performance in the non-enterprise segment were noted. Overall, the sentiment suggests cautious optimism with a focus on execution and growth in 2025.Highlights
Significant Improvement in Profitability
Non-GAAP operating income exceeded $19 million in 2024, a $25 million improvement over 2023, with non-GAAP operating margin expanding by 767 basis points. The company also generated $26 million in operating cash flow, a $50 million improvement from the previous year.
Cost Efficiency Measures
The company reduced ineffective sales and marketing spend, decreased headcount by approximately 10%, and improved non-GAAP sales and marketing expenses to 36% of revenue from 41% in 2023 and 46% in 2022.
Strategic Leadership and Organizational Changes
BigCommerce has recruited top leaders with SaaS and commerce expertise, revamped its go-to-market organization, and integrated its three main products operationally and commercially.
AI Integration for Enhanced Operations
AI is being leveraged to enhance sales efficiency, product support, and core features, contributing to more profitable and frictionless customer experiences.
Lowlights
Revenue Growth Challenges
The company did not achieve its revenue growth targets. Revenue for 2024 was $333 million, up only 8% year-over-year. ARR growth was 4%, with net revenue retention for enterprise accounts at 99%, below past performance.
Lower Performance in Non-Enterprise Segment
Non-enterprise ARR declined 4% to $88 million, indicating challenges in that market segment.
Company Guidance
During BigCommerce's fourth quarter and fiscal year 2024 earnings call, the company provided guidance for both the first quarter and full-year 2025. For Q1 2025, BigCommerce expects revenue between $81.2 million and $83.2 million, with non-GAAP operating income ranging from $4 million to $5 million. For the full-year 2025, they anticipate revenue between $342.1 million and $350.1 million, alongside non-GAAP operating income of $20 million to $24 million. The company reported a strong finish to 2024, achieving $333 million in revenue, an 8% year-over-year increase, and a non-GAAP operating income of $19 million. Their annual revenue run rate (ARR) ended at nearly $350 million, a 4% increase from the previous year. The company plans to focus on reaccelerating revenue growth, targeting mid-single-digit growth rates for 2025, with ARR growth gradually accelerating. Operating cash flow for 2024 was $26 million, marking a significant $50 million improvement over 2023. Key to their strategy is doubling their sales team by mid-2025 and transforming their product and market positioning, as demonstrated by the recent launch of Catalyst.BigCommerce Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
BigCommerce Reports Strong Growth During Cyber Week
Positive
Dec 4, 2024
BigCommerce announced an impressive 26% increase in gross merchandise value during Cyber Week, significantly outperforming global benchmarks. The company reported a rise in consumer activity, with a 13% increase in total orders and an 11% boost in average order value globally. Notably, U.S. brands saw a 27% GMV increase, while EMEA stores experienced a remarkable 39% GMV growth. These results highlight BigCommerce’s robust platform capabilities, driving high conversion rates and enhancing the online shopping experience.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.