BigCommerce (BIGC, Financial) announced its first-quarter revenue of $82.4 million, closely matching the anticipated $82.45 million. The CEO, Travis Hess, emphasized that the company's ongoing transformation strategy is yielding positive results. There have been noticeable improvements in their sales pipeline and lead generation during the first three months of 2025. To drive growth, BigCommerce has revamped its leadership with experts in SaaS and commerce and has made strategic investments to enhance its core offerings. The company remains focused on accelerating growth for the remainder of the year, targeting both B2B and B2C sectors through its main products: BigCommerce, Feedonomics, and Makeswift.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for BigCommerce Holdings Inc (BIGC, Financial) is $7.94 with a high estimate of $11.00 and a low estimate of $5.00. The average target implies an upside of 52.78% from the current price of $5.20. More detailed estimate data can be found on the BigCommerce Holdings Inc (BIGC) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, BigCommerce Holdings Inc's (BIGC, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BigCommerce Holdings Inc (BIGC, Financial) in one year is $10.23, suggesting a upside of 96.73% from the current price of $5.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BigCommerce Holdings Inc (BIGC) Summary page.
BIGC Key Business Developments
Release Date: February 20, 2025
- Revenue: $333 million for 2024, up 8% year-over-year; Q4 revenue of $87 million, up 3% year-over-year.
- Non-GAAP Operating Income: Exceeded $19 million for 2024, a $25 million improvement over 2023; $10 million in Q4 2024.
- Non-GAAP Operating Margin: Expanded by 767 basis points in 2024; nearly 6% for the year.
- Operating Cash Flow: $26 million for 2024, a $50 million improvement from 2023; $12 million in Q4 2024.
- Annual Revenue Run Rate (ARR): Nearly $350 million, a 4% increase year-over-year.
- Enterprise ARR: Grew 7% to $262 million, representing 75% of total company ARR.
- Non-GAAP Sales and Marketing Expenses: 36% of revenue, improved from 41% in 2023.
- Net Debt: Approximately $28 million after repurchasing convertible notes.
- 2025 Revenue Guidance: $342.1 million to $350.1 million.
- 2025 Non-GAAP Operating Income Guidance: $20 million to $24 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BigCommerce Holdings Inc (BIGC, Financial) achieved a significant improvement in non-GAAP operating income, exceeding $19 million, which is a $25 million improvement over 2023.
- The company expanded its non-GAAP operating margin by 767 basis points and generated $26 million in operating cash flow, marking a $50 million improvement from the previous year.
- BigCommerce Holdings Inc (BIGC) successfully reduced ineffective sales and marketing spend and decreased headcount by approximately 10%, contributing to improved financial performance.
- The company has recruited top leaders with expertise in commerce, including a new Chief Marketing Officer and Chief Revenue Officer, to drive the next phase of growth.
- BigCommerce Holdings Inc (BIGC) launched Catalyst, an accelerated reference architecture, which has received positive feedback for its cost, time, and complexity benefits in composable architectures.
Negative Points
- BigCommerce Holdings Inc (BIGC) did not achieve its revenue growth targets for 2024, with revenue increasing only 8% year-over-year to $333 million.
- Net revenue retention for enterprise accounts finished at 99%, which is below past performance and the company's expectations.
- Non-Enterprise ARR declined by 4% to $88 million, indicating challenges in the small business segment.
- The company is taking a conservative stance on growth projections for 2025, expecting mid-single-digit growth rates, reflecting macroeconomic uncertainties.
- Despite improvements, the company acknowledges that transformations take time, and early 2025 growth is expected to mirror Q4 2024 as transformation actions take root.
