BigCommerce Holdings Inc is engaged in offering Software-as-a-service (SaaS) e-commerce platform. The company's SaaS platform engages in the creation of online stores by delivering a combination of ease-of-use, enterprise functionality, and flexibility. It powers both the customers' branded ecommerce stores and their cross-channel connections to popular online marketplaces, social networks, and offline point-of-sale systems. The group operates in a single segment covering geographical areas of Americas-U.S.; Americas-other; EMEA; and APAC, of which majority of revenue is generated from Americas-U.S.
Performance Overview
BigCommerce Holdings Inc (BIGC, Financial) reported total revenue of $81.8 million for Q2 2024, surpassing the analyst estimate of $81.08 million and marking an 8% increase compared to the same period last year. The company also reported a GAAP net loss of $11.3 million, or $0.15 per share, which is an improvement from the $19.1 million loss, or $0.25 per share, reported in Q2 2023. Non-GAAP net income was $4.1 million, or $0.05 per share, compared to a non-GAAP net loss of $1.5 million, or $0.02 per share, in the same period last year.
Key Financial Achievements
BigCommerce's total annual revenue run-rate (ARR) reached $345.8 million, a 4% increase year-over-year. The ARR from enterprise accounts was $253.8 million, up 7% from the previous year, representing 73% of the total ARR. Subscription solutions revenue grew by 10% to $61.8 million, while the GAAP gross margin improved to 76% from 75% in Q2 2023.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $81.8 million | $75.4 million |
| GAAP Net Loss | ($11.3) million | ($19.1) million |
| Non-GAAP Net Income (Loss) | $4.1 million | ($1.5) million |
| GAAP Gross Margin | 76% | 75% |
Balance Sheet and Cash Flow
As of June 30, 2024, BigCommerce reported cash, cash equivalents, restricted cash, and marketable securities totaling $276.9 million. The company generated $8.3 million in net cash from operating activities for the first half of 2024, compared to a cash outflow of $6.1 million in the same period last year. Free cash flow for the six months ended June 30, 2024, was $6.5 million.
Commentary and Outlook
"The second quarter delivered results consistent with our top- and bottom-line plans," said Brent Bellm, CEO of BigCommerce. "Revenue finished just under $82 million, up over 8% year-over-year, with profitability exceeding our expectations and operating cash flow of nearly $12 million."
Analysis
BigCommerce Holdings Inc (BIGC, Financial) has demonstrated robust revenue growth and improved profitability metrics, which are crucial for a SaaS company in the competitive e-commerce platform industry. The increase in ARR, particularly from enterprise accounts, underscores the company's ability to attract and retain high-value customers. The improved gross margin and positive cash flow are also positive indicators of operational efficiency and financial health.
However, the company continues to face challenges, including a GAAP net loss and restructuring charges. These factors highlight the need for ongoing cost management and strategic investments to sustain growth and profitability.
Overall, BigCommerce's Q2 2024 performance reflects solid progress and positions the company well for future growth, particularly in the enterprise segment.
Explore the complete 8-K earnings release (here) from BigCommerce Holdings Inc for further details.
