Shares of BigCommerce Holdings (NASDAQ: BIGC ) slumped after the e-Commerce platform submitted its second-quarter earnings sheet in August, but the sell-off has gone a bit too far, in my opinion, and investors could soon see a major inflection point in the Analyst's Disclosure: I/we have a beneficial long position in the shares of BIGC, SHOP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (ot ...

Core Viewpoint - BigCommerce has appointed Travis Hess as the new CEO to address challenges such as slowing growth, declining enterprise accounts, and poor profitability, but market reaction has been muted with shares down over 35% this year and over 95% from 2020 highs [1] Company Overview - BigCommerce offers a software-as-a-service (SaaS) platform for businesses to create online marketplaces, primarily competing with Shopify [3] - The company generates two-thirds of its revenue from enterprises and one-third from small to medium-sized businesses (SMBs) [3] Challenges Facing BigCommerce - BigCommerce faces intense competition from Shopify, which has achieved over 20% revenue growth, while BigCommerce has not surpassed 20% growth since Q3 2022 [4] - In Q2, BigCommerce reported an 8.5% revenue growth with stagnant net income and nearly flat year-over-year growth [4] - The company has experienced a decline in enterprise accounts for three consecutive quarters, remaining around 5,900, despite a 7% year-over-year increase in average revenue per enterprise account in Q2 [4] Leadership and Future Outlook - Under the new leadership of Travis Hess, who has extensive IT consulting experience, there is potential for significant changes at BigCommerce [5] - The company is expected to report Q3 results soon, and it must demonstrate its capabilities to regain investor confidence amidst intense competition and unfavorable macroeconomic conditions [5]

AUSTIN, Texas, Oct. 02, 2024 (GLOBE NEWSWIRE) -- BigCommerce Holdings, Inc. ("BigCommerce") (Nasdaq: BIGC), an open SaaS, composable ecommerce platform for fast-growing and established B2C and B2B brands and retailers, today announced the appointment of Travis Hess as CEO. Brent Bellm will no longer serve as CEO of the Company or as Chairman of the Board. The Board elected Hess as a director of the Company, to fill the vacancy created by Bellm's departure. Current board member Ellen Siminoff will assume the ...

Group 1 - BigCommerce Holdings, Inc. will host a question and answer session with sell-side analysts on August 27, 2024, during the BigSummit conference in Austin, Texas [1][2] - The session will cover updates on BigCommerce's strategic initiatives, technological advancements, and financial performance [1] - Key executives participating in the session include CEO Brent Bellm, President Travis Hess, CFO Daniel Lentz, and CTO Brian Dhatt [2] Group 2 - BigCommerce is a leading open SaaS and composable ecommerce platform that supports B2C and B2B brands and retailers [3] - The platform is utilized by tens of thousands of companies across 150 countries, providing enterprise-grade functionality and ease of use [3] - Notable clients include Burrow, Coldwater Creek, and Harvey Nichols, among others [3]

WOBURN, Mass., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ: BLIN), a global leader in AI-powered marketing technology, today announced a large retailer of pins and other accessories has chosen HawkSearch's Recommendations for its BigCommerce site. The retailer will use HawkSearch to increase sales with Rapid UI and Recommendations. With HawkSearch's Rapid UI, the retailer can quickly implement HawkSearch features tailored to its industry without heavy uplift from a developer team. Wit ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was just under $82 million, representing an 8% year-over-year increase [5][20] - Subscription revenue grew 10% year-over-year to approximately $62 million, while partner and services revenue increased by 4% year-over-year to just over $20 million [20] - Adjusted EBITDA was $3 million, approximately 4% of revenue, with operating cash flow of just under $12 million [5][20] - Non-GAAP operating income was just under $2 million, a significant improvement from a loss of $3 million a year ago, reflecting a nearly 7-point year-over-year improvement in non-GAAP operating margins [20][21] - ARR (Annual Recurring Revenue) concluded at approximately $346 million, up 4% year-over-year [24] Business Line Data and Key Metrics Changes - B2B ARR finished Q2 up 35% year-over-year, with B2B GMV growing more than 50% year-over-year [21] - Enterprise account ARR was approximately $254 million, up 7% year-over-year, representing 73% of total company ARR [24] - Accounts using exclusively essentials plans finished with ARR slightly over $92 million, down 3% year-over-year [24] Market Data and Key Metrics Changes - Revenue in the Americas was up 9%, EMEA revenue grew 7%, and APAC revenue was up 9% compared to the prior year [20] - Deferred revenues increased year-over-year by $13 million, from $29 million to $42 million, reflecting a 46% year-over-year increase [23] Company Strategy and Development Direction - The company aims for efficient revenue growth and has made significant strides in improving go-to-market efficiency under new leadership [5][17] - Focus on enhancing brand positioning and refining ideal customer profiles to improve customer acquisition and retention [29][31] - Plans to leverage generative AI technology to enhance customer growth and streamline operations [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about business momentum and the potential for reaccelerating revenue growth while improving profitability and cash flow [19] - The company is cautious about consumer spending but noted resilience in the market, aligning with their expectations [58][60] - Management highlighted the importance of completing multi-geo functionality to enhance competitiveness in Europe [49] Other Important Information - The company announced a restructuring of its debt, aiming to lower overall leverage and optimize maturities [25][26] - The RealReal and Bealls were highlighted as significant customer wins, showcasing the platform's flexibility and capability for complex implementations [6][40] Q&A Session Summary Question: What is the timeline for seeing improvements from go-to-market changes? - Management indicated that improvements in gross and net retention are already being observed and are optimistic about future changes under new leadership [28][29] Question: Why restructure debt now? - The company aimed to lower leverage, space out maturities, and minimize market execution risk while reflecting confidence in long-term prospects [32][33] Question: Is B2B a focus area for growth? - Management confirmed that B2B is a significant focus, with a wide range of use cases and strong growth potential [34] Question: What is the outlook for EMEA growth? - Management noted that European economic conditions have impacted growth but expressed confidence in future demand as new functionalities are rolled out [46][49] Question: How does the company differentiate its AI capabilities? - The company claims to have the most scaled and impactful AI in e-commerce, particularly through its subsidiary Feedonomics, which optimizes catalog feeds for major advertising channels [53][54]

1© BigCommerce. All rights reserved. Confidential. 2Q 2024 Financial Results 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 "expec ...

For the quarter ended June 2024, BigCommerce (BIGC) reported revenue of $81.83 million, up 8.5% over the same period last year. EPS came in at $0.05, compared to -$0.02 in the year-ago quarter. The reported revenue represents a surprise of +0.84% over the Zacks Consensus Estimate of $81.15 million. With the consensus EPS estimate being $0.03, the EPS surprise was +66.67%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

BigCommerce (BIGC) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.06, delivering a surprise of 100%. Over the last four quarters, the company has surp ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents BigCommerce Holdings, Inc.'s condensed consolidated financial statements and related notes for the periods ended June 30, 2024, and December 31, 2023 [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents BigCommerce's condensed consolidated financial statements and detailed notes for the periods ended June 30, 2024, and December 31, 2023 [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the Company's condensed consolidated balance sheets as of June 30, 2024, and December 31, 2023 Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2024 (unaudited) | December 31, 2023 | |:---------------|:--------------------------|:------------------| | **Assets** | | | | Total current assets | $355,781 | $341,986 | | Total assets | $452,504 | $444,058 | | **Liabilities and stockholders' equity** | | | | Total current liabilities | $78,829 | $70,750 | | Total liabilities | $426,393 | $418,525 | | Total stockholders' equity | $26,111 | $25,533 | | Total liabilities and stockholders' equity | $452,504 | $444,058 | - Total assets increased by **$8.4 million (1.9%)** from **$444.06 million** at December 31, 2023, to **$452.50 million** at June 30, 2024, primarily driven by an increase in cash and cash equivalents[4](index=4&type=chunk) - Total liabilities increased by **$7.87 million (1.9%)** from **$418.53 million** at December 31, 2023, to **$426.39 million** at June 30, 2024[4](index=4&type=chunk) [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the Company's condensed consolidated statements of operations for the three and six months ended June 30, 2024 and 2023 Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | (in thousands, except per share amounts) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |:-----------------------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------|\n| Revenue | $81,829 | $75,443 | $162,189 | $147,200 | | Gross profit | $62,018 | $56,687 | $123,939 | $110,998 | | Loss from operations | $(13,488) | $(20,895) | $(21,716) | $(44,553) | | Net loss | $(11,255) | $(19,065) | $(17,647) | $(41,185) | | Basic net loss per share | $(0.15) | $(0.25) | $(0.23) | $(0.55) | - Revenue increased by **8.5% YoY** for the three months ended June 30, 2024, and by **10.2% YoY** for the six months ended June 30, 2024[6](index=6&type=chunk) - Net loss decreased significantly by **40.9% YoY** for the three months ended June 30, 2024, and by **57.2% YoY** for the six months ended June 30, 2024, indicating improved profitability[6](index=6&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the Company's condensed consolidated statements of comprehensive loss for the three and six months ended June 30, 2024 and 2023 Condensed Consolidated Statements of Comprehensive Loss (in thousands) | (in thousands) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |:---------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------|\n| Net loss | $(11,255) | $(19,065) | $(17,647) | $(41,185) | | Other comprehensive income (loss): Net unrealized gain (loss) on marketable debt securities | $(81) | $(90) | $(340) | $627 | | Total comprehensive loss | $(11,336) | $(19,155) | $(17,987) | $(40,558) | - Total comprehensive loss decreased by **40.8%** for the three months ended June 30, 2024, and by **55.7%** for the six months ended June 30, 2024, primarily due to the reduction in net loss[8](index=8&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section presents the Company's condensed consolidated statements of stockholders' equity for the six months ended June 30, 2024 Condensed Consolidated Statements of Stockholders' Equity (in thousands) | (in thousands) | Balance at December 31, 2023 | Balance at June 30, 2024 | |:---------------|:-----------------------------|:-------------------------|\n| Common Shares | 76,410 | 77,740 | | Additional Paid-in Capital | $620,021 | $638,586 | | Accumulated Deficit | $(594,658) | $(612,305) | | Total Stockholders' Equity | $25,533 | $26,111 | - Total stockholders' equity increased by **$0.578 million** from December 31, 2023, to June 30, 2024, primarily due to an increase in additional paid-in capital from stock-based compensation and stock option exercises, partially offset by net loss[9](index=9&type=chunk) - Stock-based compensation contributed **$18.397 million** to additional paid-in capital for the six months ended June 30, 2024[9](index=9&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the Company's condensed consolidated statements of cash flows for the three and six months ended June 30, 2024 and 2023 Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |:---------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------|\n| Net cash provided by (used in) operating activities | $11,738 | $14,743 | $8,321 | $(6,093) | | Net cash provided by (used in) investing activities | $60,324 | $(2,725) | $53,393 | $(12,402) | | Net cash provided by (used in) financing activities | $134 | $1,426 | $(351) | $1,096 | | Net change in cash and cash equivalents and restricted cash | $72,196 | $13,444 | $61,363 | $(17,399) | - Net cash provided by operating activities decreased by **$3.0 million** for the three months ended June 30, 2024, but significantly improved from a net cash used of **$6.093 million** to a net cash provided of **$8.321 million** for the six months ended June 30, 2024[11](index=11&type=chunk) - Net cash provided by investing activities saw a substantial increase, moving from a net cash used of **$2.725 million** to a net cash provided of **$60.324 million** for the three months ended June 30, 2024, primarily due to marketable securities maturities[11](index=11&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, explaining significant accounting policies and financial details [1. Overview](index=13&type=section&id=1.%20Overview) This note provides an overview of BigCommerce Holdings, Inc.'s business, focusing on its SaaS e-commerce platform and market strategy - BigCommerce Holdings, Inc. operates a software-as-a-service (SaaS) platform for e-commerce, simplifying online store creation with ease-of-use, enterprise functionality, and flexibility[12](index=12&type=chunk) - The platform supports branded e-commerce stores and cross-channel connections to marketplaces, social networks, and POS systems, serving various business sizes and types (B2C and B2B) on a single, multi-tenant code base[12](index=12&type=chunk) [2. Summary of significant accounting policies](index=14&type=section&id=2.%20Summary%20of%20significant%20accounting%20policies) This note details the significant accounting policies used in preparing the condensed unaudited consolidated financial statements - The condensed unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information, with certain disclosures omitted per SEC rules[13](index=13&type=chunk) - Management makes significant estimates for allowance for credit losses, constrained revenue, variable consideration, period of benefit for capitalized revenue contract costs, useful lives of intangible assets, and income taxes[15](index=15&type=chunk) - The Company operates as a single operating and reportable segment, with the CEO acting as the chief operating decision maker (CODM)[19](index=19&type=chunk) - Subscription solutions revenue is primarily from platform subscription fees and recurring professional services, recognized monthly or ratably over the contract term, with variable fees recognized as earned[20](index=20&type=chunk) - Partner and services revenue includes revenue share, partner technology integrations, and marketing services, recognized when earning activity is complete or ratably over the contract length[22](index=22&type=chunk) - Remaining performance obligations totaled **$182.0 million** as of June 30, 2024, with approximately **60%** expected to be recognized as revenue in the next 12 months[27](index=27&type=chunk) Allowance for Credit Losses (in thousands) | (in thousands) | Amount | |:---------------|:-------|\n| Balance at December 31, 2023 | $5,997 | | Provision for expected credit losses | $863 | | Write-offs charged against the allowance | $(821) | | Balance at March 31, 2024 | $6,039 | | Provision for expected credit losses | $850 | | Write-offs charged against the allowance | $(1,200) | | Balance at June 30, 2024 | $5,689 | [3. Revenue recognition and deferred costs](index=21&type=section&id=3.%20Revenue%20recognition%20and%20deferred%20costs) This note provides details on the Company's revenue recognition policies and deferred costs, including revenue by source and geography Revenue by Major Source (in thousands) | (in thousands) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |:---------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------|\n| Subscription solutions | $61,796 | $56,135 | $122,755 | $109,943 | | Partner and services | $20,033 | $19,308 | $39,434 | $37,257 | | Total Revenue | $81,829 | $75,443 | $162,189 | $147,200 | - Subscription solutions revenue increased by **10.1%** and **11.7%** for the three and six months ended June 30, 2024, respectively, driven by enterprise, mid-market, and Feedonomics activity[33](index=33&type=chunk) Revenue by Geographic Region (in thousands) | (in thousands) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |:---------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------|\n| Americas – United States | $62,428 | $57,546 | $123,567 | $112,355 | | Americas – other | $3,777 | $3,422 | $7,552 | $6,773 | | EMEA | $9,281 | $8,649 | $18,473 | $16,633 | | APAC | $6,343 | $5,826 | $12,597 | $11,439 | | Total Revenue | $81,829 | $75,443 | $162,189 | $147,200 | - The United States accounted for **76%** of total revenue, and EMEA for **11%**, during both the three and six months ended June 30, 2024 and 2023[35](index=35&type=chunk) - Deferred sales commissions increased to **$2.8 million** for the three months ended June 30, 2024 (from **$2.5 million** in 2023) and to **$5.0 million** for the six months ended June 30, 2024 (from **$4.2 million** in 2023)[36](index=36&type=chunk) [4. Fair value measurements](index=23&type=section&id=4.%20Fair%20value%20measurements) This note describes the Company's fair value measurements for financial instruments, including cash equivalents, marketable securities, and convertible notes - The Company's financial instruments carried at fair value include cash equivalents, marketable securities, and convertible senior notes, categorized into Level 1 and Level 2 inputs[37](index=37&type=chunk) Fair Value of Financial Instruments (June 30, 2024, in thousands) | (in thousands) | Level 1 | Level 2 | Total Fair Value | |:---------------|:--------|:--------|:-----------------|\n| Money market mutual funds & cash equivalents | $97,897 | $0 | $97,897 | | Corporate bonds | $0 | $67,926 | $67,926 | | U.S. treasury securities | $41,955 | $0 | $41,955 | | Commercial paper | $0 | $9,911 | $9,911 | | Agency bonds | $0 | $22,920 | $22,920 | | Total marketable securities | $41,955 | $100,757 | $142,712 | | Convertible senior notes due 2026 | $0 | $301,875 | $301,875 | - Marketable securities decreased from **$198.4 million** at December 31, 2023, to **$142.7 million** at June 30, 2024, with a shift in maturities, as **$118.9 million** are due within 1 year as of June 30, 2024[40](index=40&type=chunk)[42](index=42&type=chunk) [5. Business combinations](index=26&type=section&id=5.%20Business%20combinations) This note details the accounting for business combinations, specifically the Makeswift acquisition, including purchase consideration and goodwill - The Company acquired Makeswift for a total purchase consideration of **$9.238 million**, with **$1.1 million** held back for potential breaches and working capital adjustments[43](index=43&type=chunk) Makeswift Acquisition Fair Value of Assets Acquired and Liabilities Assumed (in thousands) | (in thousands) | Amount | |:---------------|:-------|\n| Tangible assets acquired | $1,370 | | Right-of-use asset | $147 | | Intangible assets acquired | $7,890 | | Liabilities assumed | $(1,311) | | Deferred tax liability | $(885) | | Lease liability | $(150) | | Net assets acquired, excluding goodwill | $7,061 | | Total purchase consideration | $9,238 | | Goodwill | $2,177 | - Goodwill of **$2.177 million** is primarily attributed to expected synergies and expanded market opportunities from the Makeswift integration and assembled workforce[45](index=45&type=chunk) - Acquisition-related compensation of **$2.0 million** is subject to clawback and recognized as compensation expense over an 18-month service period, with **$0.3 million** and **$0.7 million** incurred for the three and six months ended June 30, 2024, respectively[45](index=45&type=chunk) [6. Goodwill and intangible assets](index=27&type=section&id=6.%20Goodwill%20and%20intangible%20assets) This note provides information on goodwill and intangible assets, including amortization policies and carrying amounts - Goodwill is not amortized but tested for impairment annually; no impairment was recognized as of June 30, 2024[46](index=46&type=chunk) - Intangible assets are amortized on a straight-line basis over their useful lives, with amortization expense of **$2.5 million** and **$4.9 million** for the three and six months ended June 30, 2024, respectively[46](index=46&type=chunk) Intangible Assets (June 30, 2024, in thousands) | (in thousands) | Net carrying amount (June 30, 2024) | Net carrying amount (December 31, 2023) | Weighted average remaining useful life (years) | |:---------------|:------------------------------------|:----------------------------------------|:-----------------------------------------------|\n| Developed technology | $9,188 | $11,566 | 3.1 | | Customer relationship | $11,746 | $13,939 | 2.8 | | Tradename | $1,096 | $1,352 | 2.2 | | Non-compete agreement | $3 | $30 | 0.1 | | Other intangibles | $100 | $165 | 1.5 | | Total intangible assets | $22,133 | $27,052 | | - Expected amortization expense for intangible assets is **$4.816 million** for the remaining six months of 2024 and **$8.046 million** for 2025[48](index=48&type=chunk) [7. Commitments, contingencies, and leases](index=29&type=section&id=7.%20Commitments,%20contingencies,%20and%20leases) This note outlines the Company's commitments, contingencies, and lease obligations, including legal proceedings and restructuring charges - The Company is not currently a party to any legal proceedings that would have a material adverse effect on its financial statements[49](index=49&type=chunk) Unconditional Purchase Obligations (June 30, 2024, in thousands) | (in thousands) | June 30, 2024 | |:---------------|:--------------|\n| Remaining six months of 2024 | $4,815 | | 2025 | $16,902 | | 2026 | $4,976 | | 2027 and thereafter | $0 | | Total | $26,693 | - Operating lease expense was **$0.8 million** and **$1.3 million** for the three and six months ended June 30, 2024, respectively[51](index=51&type=chunk) - Restructuring charges of **$2.6 million** were incurred for the three and six months ended June 30, 2024, primarily for professional services related to capital structure alternatives[52](index=52&type=chunk) Restructuring Charges Liability (June 30, 2024, in thousands) | (in thousands) | Amount | |:---------------|:-------|\n| Liability, as of December 31, 2023 | $1,516 | | Additional charges | $2,572 | | Payments | $(1,699) | | Liability, as of June 30, 2024 | $2,389 | [8. Other liabilities](index=31&type=section&id=8.%20Other%20liabilities) This note details the components of other current liabilities, including sales tax, payroll, and restructuring-related charges Components of Other Current Liabilities (in thousands) | (in thousands) | As of June 30, 2024 | As of December 31, 2023 | |:---------------|:--------------------|:------------------------|\n| Sales tax payable | $1,691 | $1,632 | | Payroll and payroll related expenses | $11,988 | $13,080 | | Acquisition related compensation | $0 | $403 | | Restructuring related charges | $1,961 | $1,516 | | Other | $7,649 | $8,154 | | Total Other current liabilities | $23,289 | $24,785 | - Total other current liabilities decreased by **$1.496 million** from December 31, 2023, to June 30, 2024, primarily due to a decrease in payroll and acquisition-related compensation[54](index=54&type=chunk) [9. Debt](index=32&type=section&id=9.%20Debt) This note provides information on the Company's debt, primarily the 0.25% convertible senior notes due 2026 and related interest expenses - The Company has **$345.0 million** aggregate principal amount of **0.25%** convertible senior notes due 2026, issued in September 2021[55](index=55&type=chunk) Net Carrying Amount of Debt (in thousands) | (in thousands) | Outstanding Principal (June 30, 2024) | Carrying Value (June 30, 2024) | Carrying Value (December 31, 2023) | |:---------------|:--------------------------------------|:-------------------------------|:-----------------------------------|\n| 2026 Convertible Senior Notes | $345,000 | $340,468 | $339,473 | | 2023 Term Debt | $417 | $417 | $688 | | Total carrying value of debt | | $340,885 | $340,161 | | Less: current portion of debt | | $(417) | $(547) | | Total long-term portion of debt | | $340,468 | $339,614 | - Interest expense for the three and six months ended June 30, 2024, was **$0.719 million** and **$1.439 million**, respectively, primarily from contractual interest and amortization of issuance costs[57](index=57&type=chunk) - The Company entered into Capped Call Transactions in connection with the 2026 Convertible Notes to reduce potential dilution, with an initial cap price of approximately **$106.34 per share**[58](index=58&type=chunk) [10. Stockholders' equity](index=36&type=section&id=10.%20Stockholders'%20equity) This note details changes in stockholders' equity, including common shares, additional paid-in capital, and stock-based compensation plans - The 2020 Equity Incentive Plan authorized **3,873,885 shares** initially, with automatic annual increases. As of June 30, 2024, **1,096,370 shares** remain available for future issuance[60](index=60&type=chunk) Stock Option Activity (Six months ended June 30, 2024, in thousands) | (in thousands) | Outstanding | Weighted-Average Exercise Price | |:---------------|:------------|:--------------------------------|\n| Balance as of December 31, 2023 | 5,109 | $9.54 | | Options granted under all plans | 662 | $7.25 | | Exercised | (385) | $2.94 | | Plan shares expired or canceled | (633) | $16.12 | | Balance as of June 30, 2024 | 4,753 | $8.88 | - The weighted-average grant date fair value of options for the six months ended June 30, 2024, was **$4.54**, with a risk-free interest rate of **4.10%** and expected volatility of **64.53%**[62](index=62&type=chunk) Restricted Stock Unit Activity (Six months ended June 30, 2024, in thousands) | (in thousands) | Outstanding | Grant Date Fair Value | |:---------------|:------------|:----------------------|\n| Balance as of December 31, 2023 | 6,725 | $15.86 | | Granted – restricted stock units | 1,409 | $7.59 | | Granted – market-based and performance-based restricted stock units | 400 | $8.91 | | Canceled | (865) | $14.31 | | Vested and converted to shares | (1,094) | $17.09 | | Balance as of June 30, 2024 | 6,575 | $13.36 | - Remaining stock-based compensation expense for stock options is **$7.4 million** (over **2.54 years**) and for RSUs is **$58.1 million** (over **2.34 years**)[63](index=63&type=chunk)[65](index=65&type=chunk) [11. Income taxes](index=38&type=section&id=11.%20Income%20taxes) This note explains the Company's income tax position, including effective tax rates, valuation allowances, and uncertain tax positions - The effective tax rate was **(1.16)%** and **(2.45)%** for the three and six months ended June 30, 2024, respectively, lower than the U.S. federal statutory rate of **21%** due to valuation allowance offsetting loss benefits[66](index=66&type=chunk) - A valuation allowance is provided against most deferred tax assets due to historical pretax net losses[66](index=66&type=chunk) - Uncertain tax positions amounted to approximately **$0.4 million** as of June 30, 2024, unchanged from December 31, 2023[66](index=66&type=chunk) [12. Net loss per share](index=40&type=section&id=12.%20Net%20loss%20per%20share) This note presents the calculation of basic and diluted net loss per share, including the impact of potentially dilutive securities Net Loss Per Share (in thousands, except per share amounts) | (in thousands, except per share amounts) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |:-----------------------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------|\n| Net loss | $(11,255) | $(19,065) | $(17,647) | $(41,185) | | Shares used to compute basic net loss per share | 77,456 | 74,790 | 77,041 | 74,468 | | Basic net loss per share | $(0.15) | $(0.25) | $(0.23) | $(0.55) | - Potentially dilutive securities, including stock options, RSUs, and convertible debt, were excluded from diluted EPS calculation due to the reported net loss, making them antidilutive[67](index=67&type=chunk)[69](index=69&type=chunk) [13. Subsequent Event](index=40&type=section&id=13.%20Subsequent%20Event) This note describes a significant subsequent event regarding the exchange and repurchase of convertible senior notes after the reporting period - On August 1, 2024, the Company entered an exchange agreement to issue **$150.0 million** of **7.5%** convertible senior notes due 2028 in exchange for approximately **$161.2 million** of 2026 Convertible Notes[70](index=70&type=chunk) - Additionally, the Company repurchased approximately **$120.6 million** aggregate principal amount of 2026 Convertible Notes for approximately **$108.7 million** in cash[70](index=70&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses BigCommerce's financial condition, operational results, 'Open SaaS' strategy, key metrics, and liquidity, including recent debt restructuring [Overview](index=42&type=section&id=Overview) This section provides an overview of BigCommerce's SaaS e-commerce platform, its 'Open SaaS' strategy, and its focus on enterprise accounts - BigCommerce leads a new era of e-commerce with its SaaS platform, offering ease-of-use, enterprise functionality, composability, and flexibility for online stores and cross-channel connections[73](index=73&type=chunk) - The 'Open SaaS' strategy combines open-source flexibility with multi-tenant SaaS benefits, serving **5,961 enterprise accounts** as of June 30, 2024[73](index=73&type=chunk) - The Company partners with leading technology providers to offer a deep ecosystem of integrated solutions, generating high-margin revenue share[73](index=73&type=chunk) [Key factors affecting our performance](index=43&type=section&id=Key%20factors%20affecting%20our%20performance) This section discusses key factors influencing the Company's performance, including its 'Go-to-Market' strategy shift and e-commerce market trends - The 'Go-to-Market' strategy has shifted focus to mid-market and enterprise businesses, reorganizing teams for unified customer success and growth, including cross-selling Feedonomics and partner solutions[75](index=75&type=chunk) - The Company achieved its largest sequential growth in enterprise ARR in the last twelve months, with improving net retention rates and increased go-to-market spending efficiency[75](index=75&type=chunk) - Consumer spending remains resilient, but e-commerce growth rates are lower than during the pandemic, leading to longer sales cycles and elevated scrutiny on platform investment spending[76](index=76&type=chunk) [Business metrics](index=43&type=section&id=Business%20metrics) This section defines and presents key business metrics such as Annual Revenue Run-Rate (ARR), Subscription ARR, and Average Revenue Per Account (ARPA) - Annual Revenue Run-Rate (ARR) is calculated as annualized contractual monthly recurring revenue plus trailing twelve-month non-recurring and variable revenue[78](index=78&type=chunk) - Subscription ARR focuses solely on annualized contractual monthly recurring revenue[79](index=79&type=chunk) - Average Revenue Per Account (ARPA) includes customer-billed subscription solutions and professional services, plus allocated partner revenue[80](index=80&type=chunk) Key Business Metrics (in thousands) | Metric | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |:-------|:--------------|:---------------|:------------------|:-------------------|:--------------|\n| ARR (in thousands) | $345,832 | $340,147 | $336,541 | $332,245 | $331,103 | | Subscription ARR (in thousands) | $263,526 | $258,566 | $256,412 | $256,518 | $255,552 | | Number of Enterprise Accounts | 5,961 | 5,970 | 5,994 | 5,951 | 5,929 | | ARR attributable to Enterprise Accounts (in thousands) | $253,798 | $248,236 | $245,100 | $240,602 | $236,386 | | ARR attributable to Enterprise Accounts as a percentage of ARR | 73% | 73% | 73% | 72% | 71% | | Average Revenue Per Account | $42,576 | $41,581 | $40,891 | $40,431 | $39,870 | - Net Revenue Retention (NRR) for enterprise accounts was **100%** for the year ended December 31, 2023, down from **111%** in 2022, and is updated annually[83](index=83&type=chunk) [Components of results of operations](index=44&type=section&id=Components%20of%20results%20of%20operations) This section details the components of the Company's results of operations, including revenue sources, cost of revenue, and operating expenses - Revenue is generated from subscription solutions (platform fees, recurring professional services, Feedonomics) and partner and services (revenue-sharing, technology integrations, marketing)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - Cost of revenue includes personnel, hosting, platform maintenance, payment processing fees, feed management costs, and allocated overhead[87](index=87&type=chunk) - Sales and marketing expenses include personnel, commissions, marketing programs, and allocated overhead, with efforts focused on lead generation and brand promotion[88](index=88&type=chunk) - Research and development expenses primarily consist of personnel costs for platform enhancements, with continued investment expected to attract new customers[89](index=89&type=chunk) - General and administrative expenses cover finance, legal, HR personnel, external professional services, and allocated overhead[90](index=90&type=chunk) - Acquisition related expenses include third-party costs and contingent compensation from acquisitions, while restructuring charges cover severance, lease termination, and capital alternative costs[91](index=91&type=chunk)[92](index=92&type=chunk) - Interest income is earned on cash, cash equivalents, and marketable securities, while interest expense is primarily from convertible notes and financing agreements[94](index=94&type=chunk)[95](index=95&type=chunk) [Results of operations](index=48&type=section&id=Results%20of%20operations) This section analyzes the Company's consolidated results of operations, including revenue, gross profit, and net loss for the reported periods Consolidated Statement of Operations Data (in thousands) | (in thousands) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |:---------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------|\n| Revenue | $81,829 | $75,443 | $162,189 | $147,200 | | Gross profit | $62,018 | $56,687 | $123,939 | $110,998 | | Loss from operations | $(13,488) | $(20,895) | $(21,716) | $(44,553) | | Net loss | $(11,255) | $(19,065) | $(17,647) | $(41,185) | - Total revenue increased by **8.5%** to **$81.8 million** for Q2 2024 and by **10.2%** to **$162.2 million** for H1 2024, driven by growth in subscription solutions (enterprise, mid-market, Feedonomics) and partner and services revenue[101](index=101&type=chunk) - Gross margin improved to **75.8%** for Q2 2024 (from **75.1%**) and **76.4%** for H1 2024 (from **75.4%**), primarily due to cost-cutting measures from the 2023 Restructure[102](index=102&type=chunk) - Sales and marketing expenses decreased by **3.3%** for Q2 2024 and **4.0%** for H1 2024, mainly due to reduced variable marketing costs and lower personnel expenses from restructuring[103](index=103&type=chunk)[104](index=104&type=chunk) - Research and development expenses decreased by **5.2%** for Q2 2024 and **4.7%** for H1 2024, also attributed to the 2023 Restructure[104](index=104&type=chunk) - Acquisition-related expenses significantly decreased by **91.9%** for both Q2 and H1 2024, as prior year costs related to other transactions and Feedonomics were not repeated[108](index=108&type=chunk) - Restructuring charges were **$2.6 million** for Q2 and H1 2024, primarily from professional services related to capital structure alternatives[109](index=109&type=chunk) - Interest income increased by **13.1%** for Q2 2024 and **21.4%** for H1 2024, driven by higher cash, cash equivalents, and marketable securities balances[110](index=110&type=chunk) [Liquidity and capital resources](index=53&type=section&id=Liquidity%20and%20capital%20resources) This section discusses the Company's liquidity and capital resources, including cash flow generation, debt obligations, and recent restructuring activities - The Company is committed to cash flow generation and management through operational discipline and transitioning customers to more favorable payment terms, which has improved cash receipts and reduced churn[112](index=112&type=chunk) - Existing cash, cash equivalents, and operating cash flows are expected to be sufficient for working capital and capital expenditure needs for at least the next twelve months[112](index=112&type=chunk) - A recently announced convertible notes restructuring will reduce liquidity but optimize maturities and decrease overall debt leverage, though semi-annual interest payments will significantly increase[112](index=112&type=chunk) Summary of Cash Flows (in thousands) | (in thousands) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |:---------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------|\n| Net cash provided by (used in) operating activities | $11,738 | $14,743 | $8,321 | $(6,093) | | Net cash provided by (used in) investing activities | $60,324 | $(2,725) | $53,393 | $(12,402) | | Net cash provided by (used in) financing activities | $134 | $1,426 | $(351) | $1,096 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $72,196 | $13,444 | $61,363 | $(17,399) | - As of June 30, 2024, cash, cash equivalents, and restricted cash totaled **$134.2 million**, an increase of **$58.6 million** from June 30, 2023[114](index=114&type=chunk) - Net cash provided by investing activities for the six months ended June 30, 2024, was **$53.4 million**, a significant improvement from **($12.4) million** in the prior year, primarily due to marketable securities maturities[116](index=116&type=chunk) - The 2026 Convertible Notes have a principal amount of **$345.0 million**, accrue interest at **0.25%** per annum, and mature on October 1, 2026. They are senior, unsecured obligations[120](index=120&type=chunk) - The Company had no material off-balance sheet arrangements as of June 30, 2024, or December 31, 2023[122](index=122&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the Company's exposure to market risks, including interest rate, foreign currency, and credit risks, and their management [Interest rate risk](index=58&type=section&id=Interest%20rate%20risk) This section assesses the Company's exposure to interest rate risk, particularly concerning its cash, cash equivalents, and convertible notes - The Company's cash, cash equivalents, and restricted cash are primarily in interest-bearing accounts, and an immediate **100 basis point** change in interest rates at June 30, 2024, could result in a **$2 million** market value reduction or increase[124](index=124&type=chunk) - The 2028 Convertible Notes, with a **7.5%** interest rate, are expected to significantly increase annual interest expense after the restructuring[124](index=124&type=chunk) - The fair value of the 2026 and future 2028 Convertible Notes is subject to interest rate and market risk due to their conversion features, but these changes do not impact financial position, cash flows, or results of operations due to the fixed nature of the debt[124](index=124&type=chunk) [Foreign currency exchange risk](index=59&type=section&id=Foreign%20currency%20exchange%20risk) This section discusses the Company's exposure to foreign currency exchange risk from international operations and local currency expenses - A majority of revenue, expense, and capital purchasing activities are transacted in U.S. dollars, but international expansion increases exposure to foreign exchange rate fluctuations[125](index=125&type=chunk) - Operating expenses in Mexico, Australia, and the UK are denominated in local currencies (Mexican pesos, Australian dollars, British pounds sterling), creating foreign currency exposure, though currently considered relatively small[125](index=125&type=chunk) - The Company does not currently hedge foreign currency exposure but may use derivative financial instruments in the future[125](index=125&type=chunk) [Credit risk](index=59&type=section&id=Credit%20risk) This section outlines the Company's credit risk concentrations in cash, cash equivalents, and accounts receivable, and mitigation strategies - Concentrations of credit risk exist in cash and cash equivalents, restricted cash, and accounts receivable[126](index=126&type=chunk) - Investment policy limits investments to high credit quality securities, and cash balances are held by high-credit-quality financial institutions, with accounts monitored to mitigate risk[126](index=126&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) This section evaluates disclosure controls, identifies a material weakness in IT general controls, and outlines remediation efforts [Evaluation of disclosure controls and procedures](index=60&type=section&id=Evaluation%20of%20disclosure%20controls%20and%20procedures) This section presents the evaluation of the Company's disclosure controls and procedures, noting a material weakness in IT general controls - As of June 30, 2024, the Company's disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting[127](index=127&type=chunk) - The material weakness identified relates to information technology (IT) general controls, specifically concerning user access, program change management for financial applications, and IT operations controls[127](index=127&type=chunk) [Status of Remediation Efforts](index=60&type=section&id=Status%20of%20Remediation%20Efforts) This section details the ongoing efforts to remediate the identified material weakness in the Company's IT general controls - Management, with Audit Committee oversight, is dedicating significant efforts and resources throughout 2024 to remediate the identified material weakness in IT general controls[128](index=128&type=chunk) [Changes in internal control over financial reporting](index=60&type=section&id=Changes%20in%20internal%20control%20over%20financial%20reporting) This section reports on changes in internal control over financial reporting, noting no significant changes beyond remediation efforts - No significant changes in internal controls over financial reporting occurred during the three months ended June 30, 2024, other than the implementation of remediation plans for the ineffective disclosure controls[129](index=129&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides updates on legal proceedings, risk factors, equity sales, debt defaults, and other relevant disclosures [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not currently involved in any legal proceedings with a material adverse effect on its financial condition - The Company is not presently a party to any legal proceedings that, if determined adversely, would have a material adverse effect on its condensed consolidated financial statements[49](index=49&type=chunk)[131](index=131&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, focusing on new risks from the convertible notes restructuring, including increased interest and reduced liquidity - The proposed convertible notes restructuring and elevated interest rates pose a risk of insufficient cash flow to meet debt obligations, potentially requiring alternative financing or asset sales[132](index=132&type=chunk) - The 2028 Convertible Notes Indenture will impose restrictive covenants, limiting the Company's ability to incur additional indebtedness (e.g., revolving credit facility indebtedness exceeding **$25 million**) and issue certain equity securities, which could hinder growth and operational flexibility[133](index=133&type=chunk) - A breach of covenants under the 2028 or 2026 Convertible Notes Indenture could lead to an event of default, potentially accelerating debt repayment and impacting the Company's ability to repay indebtedness[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales, use of proceeds, or share repurchases occurred during the reporting period - There were no unregistered sales of equity securities, use of proceeds, or repurchases during the period[135](index=135&type=chunk)[136](index=136&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the reporting period - There were no defaults upon senior securities[136](index=136&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable[136](index=136&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 trading arrangements during the three months ended June 30, 2024 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2024[136](index=136&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Quarterly Report on Form 10-Q, including key organizational and debt documents - The exhibit index includes the Seventh Amended and Restated Certificate of Incorporation, Second Amended and Restated Bylaws, Indenture for **0.25%** Convertible Senior Notes due 2026, various Performance Unit Agreements, and certifications (31.1, 31.2, 32.1)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Signatures](index=40&type=section&id=Signatures) This section contains the required signatures for the Quarterly Report on Form 10-Q by authorized officers - The report is signed by Brent Bellm, Chairman and Chief Executive Officer, and Daniel Lentz, Chief Financial Officer, on August 1, 2024[142](index=142&type=chunk)