Core Insights - Shares of BigCommerce Holdings, Inc. (NASDAQ: BIGC) experienced a decline following the release of the fourth-quarter earnings report, primarily due to moderate top line growth in the e-Commerce and SaaS sectors [1] - The company provided guidance indicating only high-single-digit growth for the upcoming period [1] Financial Performance - The fourth-quarter earnings scorecard revealed that BigCommerce's revenue growth was not as robust as anticipated, leading to a negative market reaction [1] - The company's future outlook suggests a conservative growth trajectory, which may impact investor sentiment [1]

Core Insights - BigCommerce reported revenue of $87.03 million for Q4 2024, a year-over-year increase of 3.4% and an EPS of $0.11, up from $0.09 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $86.75 million, resulting in a surprise of +0.32%, while the EPS surprise was +83.33% compared to the consensus estimate of $0.06 [1] Financial Performance Metrics - Annual Recurring Revenue (ARR) attributable to Enterprise Accounts was $261.60 million, slightly below the two-analyst average estimate of $263.87 million [4] - Total Annual Revenue Run-rate (ARR) was reported at $349.60 million, compared to the average estimate of $351.45 million based on two analysts [4] - Revenue from Partner and Services was $24.74 million, exceeding the average estimate of $23.92 million from six analysts, reflecting a year-over-year increase of +5.1% [4] - Revenue from Subscription Solutions was $62.29 million, slightly below the six-analyst average estimate of $62.83 million, with a year-over-year change of +2.8% [4] Stock Performance - BigCommerce shares have returned +7.9% over the past month, outperforming the Zacks S&P 500 composite's +2.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported non-GAAP operating income exceeding $19 million for 2024, a $25 million improvement over 2023, and nearly double the original forecast [9] - Non-GAAP operating margin expanded by 767 basis points, with operating cash flow reaching $26 million, a $50 million improvement from the previous year [9][25] - Revenue for Q4 reached $87 million, up 3% year-over-year, while full-year revenue grew 8% to $333 million [25][30] - Annual recurring revenue (ARR) ended at nearly $350 million, a 4% increase year-over-year [27] Business Line Data and Key Metrics Changes - The company has three owned products: BigCommerce, Feedonomics, and Makeswift, which have been integrated operationally and commercially [16] - Enterprise ARR grew 7% to $262 million, representing 75% of total company ARR, while non-enterprise ARR declined 4% to $88 million [27][30] Market Data and Key Metrics Changes - Net revenue retention for enterprise accounts finished at 99%, which is below past performance [12][27] - The company is targeting mid-single-digit growth rates for the full year, with ARR growth gradually accelerating [30][31] Company Strategy and Development Direction - The company aims to reaccelerate revenue growth profitably, operate with discipline, and execute a sales and marketing transformation [22] - Recent leadership additions are expected to drive the next growth phase, with a focus on recruiting top leaders with SaaS and commerce expertise [13][14] - The launch of Catalyst is intended to enhance capabilities and reduce costs for brands, retailers, and distributors [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting that they have not baked significant changes into their outlook [92] - The company is focused on tactical execution within its go-to-market teams to achieve its numbers [94] - Management acknowledged that transformations take time but emphasized their commitment to unlocking the company's full potential [32][120] Other Important Information - The company reduced headcount by approximately 10% and streamlined operations to improve profitability and cash flow [28] - The financial position is strong, with $126 million in cash and marketable securities after repurchasing a portion of convertible notes [29][30] Q&A Session Summary Question: Key benchmarks for success and timeline for improvements - Management indicated that pipeline quality will be the leading indicator of success, with expectations for improved bookings by mid-year [38][40] Question: Sales capacity ramp and pipeline creation - Management clarified that the majority of resources to double sales capacity are already in place, with expectations for acceleration in the back half of the year [50][54] Question: Impact of tariffs on customer spending - Management stated that while macroeconomic factors contribute to conservatism in guidance, there are encouraging signs of optimism in the prospect community [57][58] Question: Engagement with partners post-leadership changes - Management reported positive engagement with partners, focusing on deepening relationships and enhancing operational capabilities [61][62] Question: Net revenue retention and churn reasons - Management noted that integrating products and improving go-to-market effectiveness will enhance net revenue retention and address churn [88][89] Question: Dependence on macroeconomic conditions - Management emphasized a conservative outlook, not relying on macro changes for guidance, while remaining cautiously optimistic about project resurgence [92][94] Question: Balance between partner engagement and internal capabilities - Management believes that partnerships will strengthen as they create a marketplace with partners, enhancing customer options and capabilities [98][100] Question: Competitive landscape affecting enterprise accounts - Management acknowledged stabilization in enterprise account numbers but aims for growth, focusing on larger customers for dollarized growth [103][105]

Core Insights - BigCommerce (BIGC) reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing an increase from $0.09 per share a year ago, resulting in an earnings surprise of 83.33% [1] - The company achieved revenues of $87.03 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.32% and increasing from $84.15 million year-over-year [2] - BigCommerce has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of BigCommerce's stock will largely depend on management's commentary during the earnings call and the sustainability of its immediate price movement based on the latest earnings numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $83.63 million, and for the current fiscal year, it is $0.29 on revenues of $349.18 million [7] Industry Context - The Internet - Software industry, to which BigCommerce belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

4Q 2024 Financial Results © BigCommerce. All rights reserved. Confidential. 1 Disclaimer This presentation has been prepared by BigCommerce Holdings, Inc. ("we,ˮ "us,ˮ "our,ˮ "BigCommerceˮ or the "Companyˮ). This presentation may contain forward-looking statements which constitute the views of the Company with respect to future events which can be identified by the use of forward-looking terminology such as "anticipate,ˮ "believe,ˮ "budget,ˮ "can,ˮ "continue,ˮ "commit,ˮ "control,ˮ "could,ˮ "estimate,ˮ "expe ...

Revenue Performance - Total revenue for fiscal year 2024 was $332.9 million, an increase of 8% compared to fiscal year 2023[11] - Total annual recurring revenue (ARR) as of December 31, 2024, was $349.6 million, up 4% year-over-year[5] - Subscription solutions revenue for Q4 2024 was $62.3 million, a 3% increase compared to Q4 2023[5] - Revenue for the year ended December 31, 2024, is $332,927,000, representing an increase of 7.0% from $309,394,000 in 2023[45] - Total revenue for Q4 2024 reached $87,028 thousand, a 2.2% increase compared to $84,149 thousand in Q4 2023[48] - Revenue from the Americas (U.S.) for Q4 2024 was $66,078 thousand, an increase from $64,055 thousand in Q4 2023, representing a growth of 3.2%[49] - Year-to-date revenue for 2024 reached $332,927 thousand, up from $309,394 thousand in 2023, marking an increase of 7.6%[53] Profitability Metrics - GAAP gross margin for fiscal year 2024 was 77%, compared to 76% in fiscal year 2023[11] - Non-GAAP operating income for fiscal year 2024 was $19.5 million, compared to a loss of $5.7 million in fiscal year 2023[11] - Adjusted EBITDA for Q4 2024 was $11.0 million, up from $6.5 million in Q4 2023[7] - Adjusted EBITDA shows a net loss of $41,684,000 for the year ended December 31, 2024, compared to a loss of $72,444,000 in 2023, reflecting an improvement[32] - Non-GAAP net income for Q4 2024 was $8,446 thousand, compared to $7,876 thousand in Q4 2023, reflecting a year-over-year increase of 7.2%[51] - Adjusted EBITDA for Q4 2024 was $11,031 thousand, a significant increase from $6,540 thousand in Q4 2023, marking a growth of 68.0%[52] Net Loss and Cash Flow - GAAP net loss for fiscal year 2024 was ($27.0) million, an improvement from ($64.7) million in fiscal year 2023[16] - Net loss for the year ended December 31, 2024, is $27,030,000, a decrease from $64,671,000 in 2023, indicating a reduction of 58.2%[45] - Net loss for Q4 2024 was $2,390 thousand, an improvement from a net loss of $3,176 thousand in Q4 2023[47] - Cash flows from operating activities for the year ended December 31, 2024, were $26,254 thousand, a turnaround from cash used in operations of $(24,243) thousand in 2023[47] - Free cash flow for Q4 2024 was $11,573 thousand, a decrease from $12,236 thousand in Q4 2023[57] - The company reported free cash flow of $22.5 million for the year ended December 31, 2024[13] Assets and Liabilities - Total current assets decreased to $251,219,000 in December 2024 from $341,986,000 in December 2023, a decline of 26.5%[43] - Total liabilities decreased to $306,920,000 in December 2024 from $418,525,000 in December 2023, a reduction of 26.6%[43] - Total stockholders' equity increased to $33,369,000 in December 2024 from $25,533,000 in December 2023, a growth of 30.7%[43] Operational Efficiency - The number of enterprise accounts was 5,884, a decrease of 2% compared to Q4 2023[5] - Non-GAAP cost of revenue for Q4 2024 was $18,741 thousand, representing 21.5% of revenue, compared to 21.2% in Q4 2023[53] - Non-GAAP sales and marketing expense for Q4 2024 was $28,685 thousand, which is 33.0% of revenue, down from 36.7% in Q4 2023[54] - Non-GAAP research and development expense for Q4 2024 was $16,664 thousand, accounting for 19.1% of revenue, compared to 20.9% in Q4 2023[55] - Non-GAAP general and administrative expense for Q4 2024 was $12,853 thousand, maintaining 14.8% of revenue, consistent with Q4 2023[56]

Financial Performance - Full-year total revenue reached $332.9 million, marking an 8% increase compared to the prior year [1] - Total Annual Revenue Run-Rate (ARR) was $349.6 million, up 4% year-over-year [1] - Fourth quarter revenue was $87.0 million, a 3% increase from the fourth quarter of 2023 [7] - Subscription solutions revenue for the year was $247.9 million, also an 8% increase from the previous year [14] - GAAP gross margin improved to 77% from 76% in the prior year [14] Operating Metrics - Adjusted EBITDA for the fourth quarter was $11.0 million, compared to $6.5 million in the same quarter of 2023 [6] - Non-GAAP operating income for the fourth quarter was $10.1 million, up from $5.4 million year-over-year [7] - The number of enterprise accounts decreased by 2% to 5,884, while average revenue per account (ARPA) increased by 9% to $44,458 [7] Cash Flow and Debt - Operating cash flow for the full year was $26.3 million, a significant improvement from a cash outflow of $24.2 million in 2023 [11] - The company had total outstanding debt of approximately $154.1 million as of December 31, 2024 [8] Business Highlights - The company successfully executed a go-to-market transformation, aligning its strategy and structure [2] - BigCommerce achieved 100% uptime during Cyber Week, with a 26% increase in gross merchandise value (GMV) year-over-year [15][16] - A new global partnership with Klarna was established to offer buy now, pay later services to merchants [18] Leadership Changes - Several key leadership appointments were made, including a new Chief Marketing Officer and Chief Revenue Officer [15]

Core Insights - Analysts project that BigCommerce (BIGC) will report quarterly earnings of $0.06 per share, reflecting a year-over-year decline of 33.3% [1] - Revenue is expected to reach $86.75 million, which represents a 3.1% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Revenue Projections - Revenue from 'Partner and services' is estimated to be $23.92 million, showing a year-over-year increase of 1.6% [4] - 'Subscription solutions' revenue is projected to reach $62.83 million, indicating a 3.7% increase year over year [4] - The consensus estimate for 'Total Annual Revenue Run-rate (ARR)' is $351.45 million, up from $336.50 million reported in the same quarter last year [4] Market Performance - BigCommerce shares have increased by 13.5% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4.7% [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5]

Core Insights - BigCommerce has appointed Rob Walter as Chief Revenue Officer and Michelle Suzuki as Chief Marketing Officer, enhancing its leadership team to drive growth and improve shareholder value [1][3][5] Group 1: Leadership Appointments - Rob Walter brings 20 years of ecommerce experience, having led sales and go-to-market teams at companies like Salesforce and eBay [2][4] - Michelle Suzuki has over 25 years of experience in scaling high-growth companies, including roles at EMC and Ancestry [2][6] Group 2: Strategic Focus - The new appointments reflect BigCommerce's commitment to investing in top talent to reignite growth and enhance shareholder value [3][5] - Walter emphasizes the need for ecommerce businesses to reach customers in innovative ways, aligning with BigCommerce's flexible platform [5][6] Group 3: Previous Achievements - Walter previously served as Chief Revenue Officer at Amplience and OroCommerce, where he led significant growth initiatives [4] - Suzuki has a track record of transforming companies into rapid-growth SaaS businesses and played a key role in a $3 billion IPO at Instructure [6][7] Group 4: Company Overview - BigCommerce is a leading open SaaS and composable ecommerce platform, serving tens of thousands of B2C and B2B companies across 150 countries [7]

Core Points - BigCommerce Holdings, Inc. will report its financial results for Q4 and fiscal year 2024 on February 20, 2025, before market open [1] - A conference call to discuss the financial results and business highlights is scheduled for 7:00 a.m. CT (8:00 a.m. ET) on the same day [2] - The conference call will be accessible via phone and a live webcast on BigCommerce's investor relations website [2] - A telephone replay of the call will be available until February 27, 2025, along with a webcast replay for 12 months [3] Company Overview - BigCommerce is a leading open SaaS and composable ecommerce platform that supports B2C and B2B brands and retailers [4] - The platform offers enterprise-grade functionality, customization, and ease of use, serving tens of thousands of companies across 150 countries [4] - Notable clients include Burrow, Coldwater Creek, Harvey Nichols, and others [4]