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Bigmerce (BIGC) - 2024 Q4 - Annual Report
BIGCBigmerce (BIGC)2025-02-27 22:06
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International Expansion - BigCommerce serves customers across more than 150 countries, enabling stores in various languages and currencies, with a focus on international expansion as part of its growth strategy[37]. - The EMEA region experienced revenue growth of 10% for the year ended December 31, 2024, following a 25% growth in 2023, while APAC saw a 7% revenue growth for the same periods[38]. Business Categorization - The company categorizes small businesses as those with annual revenue ranging from 0.5millionto0.5 million to 5.0 million, and any business with revenue over 5.0millionfallsunderB2BorB2C[36].SecurityandTechnology−BigCommerce′splatformisdesignedwithenterprise−gradesecurity,reliability,andscalability,utilizingbest−of−breedopensourcetechnologiesacrossgeographically−distributeddatacenters[35].−BigCommerce′sCatalystframework,launchedinlate2024,simplifiescomposablecommerceandallowsforrapidinnovationanddevelopmentofonlinestores[31].IntellectualProperty−ThecompanyhastwoissuedpatentsintheUnitedStates,expiringin2035and2036,andreliesonvariousintellectualpropertyprotectionsincludingtradesecretsandtrademarks[41].Workforce−AsofDecember31,2024,BigCommerceemployed1,161full−timeemployees,with705.0 million falls under B2B or B2C[36]. Security and Technology - BigCommerce's platform is designed with enterprise-grade security, reliability, and scalability, utilizing best-of-breed open source technologies across geographically-distributed data centers[35]. - BigCommerce's Catalyst framework, launched in late 2024, simplifies composable commerce and allows for rapid innovation and development of online stores[31]. Intellectual Property - The company has two issued patents in the United States, expiring in 2035 and 2036, and relies on various intellectual property protections including trade secrets and trademarks[41]. Workforce - As of December 31, 2024, BigCommerce employed 1,161 full-time employees, with 70% located in the United States, emphasizing the importance of attracting and retaining skilled personnel[42]. Business Strategy - BigCommerce's mission is to empower businesses to sell more everywhere, focusing on B2C, B2B, and small business markets[25]. - The company aims to continue investing in strategic offerings and developing partnerships to enhance its portfolio of professional-grade commerce solutions[33]. - The company emphasizes a partner-centric strategy, collaborating with leading providers in adjacent categories rather than competing against them[32]. Financial Performance - The company historically experiences higher revenue in the fourth quarter due to seasonal holiday demand, although future patterns may vary[47]. - As of December 31, 2024, the company issued 150.0 million in 2028 Convertible Notes with a fixed interest rate of 7.50 percent[366]. - An immediate increase or decrease in interest rates of 100 basis points could result in a $1.3 million market value change[365]. - The company has not experienced any losses on deposits of cash and cash equivalents, which are held by high credit quality financial institutions[370]. Currency Exposure - The company currently does not hedge foreign currency exposure but may consider using derivative financial instruments in the future[369]. - A majority of the company's revenue and expenses for the year ended December 31, 2024, were transacted in U.S. dollars, minimizing foreign exchange risk[367]. - The company believes that exposure to foreign currency fluctuations from operating expenses is relatively small at this time[368]. Legal Environment - The legal environment for internet-based businesses is rapidly evolving, impacting areas such as data privacy and intellectual property[48]. - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[49].