Bigmerce (BIGC) Gurufocus·2024-10-03 18:15Core 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]