Bigmerce (US:BIGC)2023-05-04 16:00Financial Performance - Total revenue for the three months ended March 31, 2023, was $71,757,000, an increase of 8.6% from $66,050,000 in the same period of 2022[127] - Net loss for the three months ended March 31, 2023, was $22,120,000, a significant improvement compared to a net loss of $37,037,000 in the same period of 2022[122] - Revenue increased by $5.7 million, or 8.6%, to $71.8 million from $66.1 million, driven by a $5.8 million, or 12.1%, increase in subscription solutions revenue[209] - Gross profit for the three months ended March 31, 2023, was $54,311 thousand, an increase of $5,364 thousand or 11.0% from $48,947 thousand in 2022[237] - The gross margin for the three months ended March 31, 2023, was 75.7%, compared to 74.1% in the previous year[237] Cash Flow and Liquidity - Cash and cash equivalents decreased to $61,070,000 as of March 31, 2023, down from $91,573,000 as of December 31, 2022[116] - Cash flows used in operating activities for the three months ended March 31, 2023, were $(20,836,000), a slight improvement from $(21,985,000) in the same period of 2022[122] - Net cash used in operating activities was $(20,836) thousand, compared to $(21,985) thousand in the previous year, showing a decrease of $1,149 thousand[215] - The company expects to continue incurring operating losses and negative cash flows for the full year 2023, potentially requiring additional capital resources[214] Assets and Liabilities - Total assets decreased to $461,506,000 as of March 31, 2023, compared to $474,056,000 as of December 31, 2022[116] - Total liabilities slightly decreased to $427,066,000 as of March 31, 2023, from $428,384,000 as of December 31, 2022[116] - As of March 31, 2023, $33.8 million in contingent consideration is to be paid, with $31.8 million potentially settled in shares of common stock[193] Revenue Breakdown - Subscription solutions revenue reached $53.8 million, up from $48.0 million, primarily due to growth in mid-market and enterprise activity[209] - Partner and services revenue decreased by $0.1 million, or 0.6%, to $18.0 million, attributed to a decline in revenue-sharing activity with technology partners[209] - Deferred revenue increased primarily due to increases in SaaS-related subscriptions, indicating growth in subscription solutions[145] Expenses - The company recognized $4.1 million in acquisition-related expenses during the three months ended March 31, 2023, down from $12.7 million in the same period of 2022[136] - General and administrative expenses increased by $0.6 million, or 4.1%, to $16.5 million from $15.9 million, primarily due to increased spending in various areas[211] - Research and development expenses are expected to increase in absolute dollars but decrease as a percentage of total revenue over time[205] - Research and development expenses decreased by $0.1 million, or (0.5)%, to $20.8 million from $20.9 million, as a result of cost-cutting measures[238] Strategic Initiatives - The company’s differentiated Open SaaS technology approach aims to provide flexibility and customization, enhancing competitive advantage for businesses[180] - The company focuses on strategic partnerships to enhance its ecommerce platform and earn high-margin revenue shares from technology partners[304] Other Financial Metrics - The provision for expected credit losses was $1.075 million, with accounts written off totaling $1.476 million, resulting in a balance of $9.594 million as of March 31, 2023[151] - The effective tax rate for the three months ended March 31, 2023, was approximately (0.90)%, lower than the U.S. federal statutory rate of 21%[297] - The company calculates annual revenue run-rate (ARR) by summing contractual monthly recurring revenue and trailing twelve-month non-recurring revenue[305] Acquisitions and Restructuring - The acquisition of Bundle B2B Inc. in April 2022 had a total purchase price of $7.7 million, with $7.3 million attributed to goodwill[284] - The company incurred $3.6 million in severance and other compensation charges related to the 2022 Restructure, with an additional $0.4 million in compensation charges during the three months ended March 31, 2023[274] - The company has $0.2 million accrued as of March 31, 2023, related to the 2022 Restructure, with no further material charges expected under this plan[274]