Bigmerce (BIGC)2025-05-08 11:15Financial Performance - As of March 31, 2025, BigCommerce served 5,825 enterprise accounts, a slight decrease from 5,884 accounts as of December 31, 2024[137]. - Annual revenue run-rate (ARR) reached $350.835 million as of March 31, 2025, up from $349.599 million at the end of 2024[156]. - Subscription annual revenue run-rate (Subscription ARR) was $264.922 million as of March 31, 2025, compared to $264.541 million at the end of 2024[156]. - ARR attributable to enterprise accounts was $263.815 million, representing 75% of total ARR as of March 31, 2025[156]. - Average revenue per account (ARPA) increased to $45,290 as of March 31, 2025, from $44,458 at the end of 2024[156]. - Total revenue increased by $2.0 million, or 2.5%, to $82.4 million for the three months ended March 31, 2025, compared to $80.4 million for the same period in 2024[177]. - Subscription solutions revenue rose by $1.2 million, or 1.9%, to $62.1 million, primarily due to increased Feedonomics activity[177]. - Partner and services revenue increased by $0.9 million, or 4.4%, to $20.3 million, driven by revenue share activity[177]. Cost and Expenses - Cost of revenue decreased by $1.5 million, or 7.9%, to $16.984 million, resulting in a gross margin increase to 79.4% from 77.1%[178]. - Total operating expenses decreased by $2.353 million, or 3.4%, to $67.796 million, representing 82.3% of total revenue[180]. - Sales and marketing expenses decreased by $2.066 million, or 6.4%, to $30.366 million, accounting for 36.9% of total revenue[180]. - Research and development expenses decreased by $0.782 million, or 3.9%, to $19.206 million, representing 23.3% of total revenue[180]. - General and administrative expenses decreased by $1.285 million, or 8.6%, to $13.644 million, accounting for 16.6% of total revenue[180]. - Restructuring charges of $1.912 million were recorded, reflecting a significant operational adjustment[180]. - Restructuring charges increased for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to severance and consulting costs related to workforce reduction and changes in go-to-market strategy[188]. Cash Flow and Financing - Net cash provided by operating activities was $401,000 for the three months ended March 31, 2025, a significant improvement from a net cash used of $3.4 million in 2024[196]. - Net cash provided by investing activities was $17.4 million for the three months ended March 31, 2025, compared to a net cash used of $6.9 million in 2024, primarily from the sale and maturity of marketable securities[197]. - Net cash used in financing activities increased to $54.9 million for the three months ended March 31, 2025, from $485,000 in 2024, mainly due to the repayment of convertible notes[198]. - As of March 31, 2025, the company had $53.2 million in cash, cash equivalents, and restricted cash, a decrease of $8.8 million from $62.0 million in 2024[194]. - The company believes existing cash and cash equivalents will be sufficient to meet working capital and capital expenditure needs for at least the next twelve months[201]. - The company issued $150.0 million in aggregate principal amount of 7.50% convertible senior notes due 2028 in August 2024[204]. - The company repurchased approximately $59.1 million of its 2026 Convertible Notes for about $54.4 million in cash, resulting in a net gain of approximately $3.9 million[212]. - As of March 31, 2025, approximately $4.0 million principal amount of 2026 Convertible Notes remain outstanding[212]. - The company issued 2028 Convertible Notes with an aggregate principal amount of $150.0 million, which has a fixed interest rate of 7.50 percent[219]. Interest and Market Risks - Gain on convertible note extinguishment was $3.9 million for the three months ended March 31, 2025, representing a 100% increase from zero in the same period of 2024[189]. - Interest income decreased by 59.1% to $1.3 million for the three months ended March 31, 2025, down from $3.2 million in 2024, attributed to lower yields on cash equivalents and marketable securities[190]. - Interest expense increased by 253.2% to $2.5 million for the three months ended March 31, 2025, compared to $720,000 in 2024, due to the exchange of convertible notes at a higher effective interest rate[191]. - An immediate increase or decrease in interest rates of 100 basis points could result in a $0.8 million market value change of the company's cash equivalents[218]. - The company maintains its cash equivalents in a variety of investment-grade securities to minimize interest rate risk[218]. Currency and Credit Risk - All revenue and most expenses for the three months ended March 31, 2025, were transacted in U.S. dollars, minimizing foreign currency exchange risk[220]. - The company currently does not hedge foreign currency exposure but may consider using derivative financial instruments in the future[222]. - The company has not experienced any losses on deposits of cash and cash equivalents, indicating effective credit risk management[223]. Strategic Initiatives - BigCommerce plans to launch its new payments offering in 2026, aimed at small and medium-sized customers[149]. - The company is integrating artificial intelligence across its platform to enhance personalization and operational efficiency[150]. - BigCommerce continues to invest in its core B2B and B2C product offerings to meet evolving customer needs[144]. - The company is advancing initiatives to expand platform capabilities and support revenue growth, including a beta launch of Feedonomics self-serve[147]. Accounting and Reporting - There have been no material changes to the company's critical accounting policies and estimates compared to previous reports[215]. - The company has no off-balance sheet arrangements as of March 31, 2025[213].