Bigmerce (US:BIGC)2022-11-03 16:00Revenue Growth - As of September 30, 2022, BigCommerce reported a total annual revenue run-rate (ARR) of $305.32 million, up from $295.95 million as of June 30, 2022, representing a growth of approximately 4.6%[148] - Subscription ARR reached $233.13 million as of September 30, 2022, compared to $225.76 million on June 30, 2022, indicating a growth of about 3.5%[148] - Revenue for the three months ended September 30, 2022, increased by $13.1 million, or 22.1%, to $72.4 million compared to $59.3 million for the same period in 2021[174] - For the nine months ended September 30, 2022, total revenue increased by $51.7 million, or 33.4%, to $206.6 million from $154.9 million in the prior year[175] - Subscription solutions revenue for the nine months rose by $44.4 million, or 41.1%, to $152.5 million, with Feedonomics contributing $24.0 million to this increase[175] Customer Metrics - The number of enterprise accounts increased to 5,560 as of September 30, 2022, from 5,418 on June 30, 2022, reflecting a growth of 2.6%[148] - The ARR attributable to enterprise accounts was $216.20 million, which constitutes 71% of the total ARR, up from 70% in the previous quarter[148] - Average revenue per account (ARPA) for enterprise accounts was $38,885 as of September 30, 2022, compared to $38,133 as of June 30, 2022, showing an increase of 2%[148] - The number of accounts with an annual contract value (ACV) greater than $2,000 reached 13,198, up from 13,006 in the previous quarter, marking a growth of 1.5%[148] - Net revenue retention (NRR) for accounts with ACV greater than $2,000 was reported at 116% for the year ended December 31, 2021, indicating strong customer retention and expansion[151] Expenses and Costs - Cost of revenue for the three months ended September 30, 2022, was $17.5 million, up from $12.4 million, reflecting a 41.3% increase[176] - Sales and marketing expenses for the three months ended September 30, 2022, were $34.4 million, compared to $26.1 million in the same period last year[169] - Research and development expenses for the three months ended September 30, 2022, increased to $22.2 million from $16.5 million, reflecting ongoing investments in platform enhancements[169] - Cost of revenue increased by $19.7 million, or 61.7%, to $51.5 million for the nine months ended September 30, 2022, primarily due to higher hosting and personnel costs[178] - Gross margin decreased to 74.7% from 79.7% for the nine months ended September 30, 2022, mainly due to the acquisition of Feedonomics[178] Cash Flow and Financing - Net cash used in operating activities was $86.7 million for the nine months ended September 30, 2022, compared to $31.5 million for the same period in 2021[197] - As of September 30, 2022, the company had $308.1 million in cash, cash equivalents, restricted cash, and marketable securities, a decrease of $101.4 million from $409.5 million as of September 30, 2021[195] - Net cash provided by financing activities for the three months ended September 30, 2022, was $0.2 million, a significant decrease from $300.8 million in 2021[200] - For the nine months ended September 30, 2022, net cash provided by financing activities was $0.1 million, compared to $303.6 million in 2021[200] - The company anticipates continuing to generate negative operating cash flow and may require additional capital resources to execute strategic initiatives[191] Strategic Initiatives - BigCommerce's platform supports a wide range of customers, including notable brands such as Ben & Jerry's and Vodafone, enhancing its market presence[138] - The company emphasizes its "Open SaaS" strategy, which combines the flexibility of open-source software with the benefits of multi-tenant SaaS, aiming to provide a competitive advantage in the ecommerce space[140] - BigCommerce's acquisition of Feedonomics on July 23, 2021, has contributed to its subscription revenue, expanding its service offerings in feed management solutions[154] - The acquisition of Feedonomics requires up to $32.5 million for the remaining annual installment, contingent on certain product and financial milestones[192] Financial Instruments and Risks - The company issued $345 million principal amount of 0.25% Convertible Senior Notes due 2026 in September 2021[201] - The initial conversion rate for the Convertible Notes is 13.6783 shares per $1,000 principal amount, equating to an initial conversion price of approximately $73.11 per share[201] - A one-eighth percent change in interest expense would impact annual cash interest expense by approximately $0.4 million[206] - The company currently does not hedge foreign currency exposure but may consider it in the future[209] - The company has not experienced any losses on cash and cash equivalents deposits, which are monitored to mitigate credit risk[210]