GuruFocus -
- Total (EPA:TTEF) Revenue: Just under $84 million, up 7% year-over-year.
- Subscription Revenue: Approximately $63 million, up 7% year-over-year.
- Partner and Services Revenue: Just under $21 million, up 8% year-over-year.
- Americas Revenue Growth: 6% year-over-year.
- EMEA Revenue Growth: 12% year-over-year.
- APAC Revenue Growth: 9% year-over-year.
- Non-GAAP Operating Income: Just over $4 million, compared to a loss of $1 million in the same period last year.
- Non-GAAP Operating Margin: Improved by 700 basis points to positive 5% from negative 2% in Q3 2023.
- Operating Cash Flow: Just under $14 million for the 9 months ended September 30, 2024, a $51 million improvement year-over-year.
- Annual Recurring Revenue (ARR): Approximately $348 million, up 5% year-over-year.
- Enterprise Account ARR: Approximately $257 million, up 7% year-over-year.
- Average Revenue per Enterprise Account: $43,600, up 8% year-over-year.
- Q4 Revenue Guidance: $85.8 million to $87.8 million, reflecting year-over-year growth of 2% to 4%.
- Full Year 2024 Revenue Guidance: $331.7 million to $333.7 million, representing growth of approximately 7% to 8%.
- Q4 Non-GAAP Operating Income Guidance: $4.4 million to $6.4 million.
- Full Year 2024 Non-GAAP Operating Income Guidance: $13.8 million to $15.8 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BigCommerce Holdings Inc (NASDAQ:BIGC) reported a 7% year-over-year increase in total revenue for Q3 2024, reaching just under $84 million.
- The company achieved a significant improvement in non-GAAP operating income, reporting over $4 million compared to a loss of $1 million in the same period last year.
- BigCommerce Holdings Inc (NASDAQ:BIGC) is focusing on efficient revenue growth by reallocating resources towards higher-performing areas and nearly doubling its quota-carrying sales capacity in 2025.
- The company is making strategic investments to advance AI capabilities across its product suite, aiming to enhance revenue generation, operational agility, and cost savings for clients.
- BigCommerce Holdings Inc (NASDAQ:BIGC) is streamlining its brand architecture to integrate capabilities of its flagship platform with Feedonomics and Make Swift, providing a more comprehensive solution to customers.
- Operational performance has fallen short of expectations, prompting the need for significant structural changes to align with growth goals.
- The company reported a decline in the number of enterprise accounts for three consecutive quarters, with the latest quarter showing a more material drop.
- BigCommerce Holdings Inc (NASDAQ:BIGC) is facing challenges in pipeline growth, particularly in the B2B sector, which has not met expectations by this point in the year.
- The company anticipates additional restructuring costs in 2025, potentially amounting to $3 million to $5 million, related to non-headcount impacts.
- Despite revenue growth, the company is not satisfied with its current ARR growth, which is lagging behind revenue growth, indicating a need for improvement in driving efficient growth.
A: Travis Hess, CEO: We remain committed to an open approach. Make Swift is a visual editor that enhances agility and customer experience, while Feedonomics optimizes revenue across channels. We respect that some Feedonomics revenue comes from brands not using BigCommerce, and we aim to complement rather than compete with ISVs.
Q: Ellen, how is the Board approaching outside interest in BigCommerce?
A: Ellen Siminoff, Executive Chair: We are focused on improving shareholder value and continue to engage with partners both inside and outside the company.
Q: What efforts in R&D are you most excited about for improving cross-selling and product integration?
A: Travis Hess, CEO: Make Swift is integrated into our Catalyst architecture, debuting in January. We're launching a self-serve version of Feedonomics to expand market reach. We expect organic cross-sell and upsell to increase wallet share from existing clients.
Q: With potential tariff increases, how could this affect demand?
A: Daniel Lentz, CFO: It's too early to predict. We will monitor any changes in prices and consumer demand but are not altering plans based on potential tariff changes.
Q: Travis, you've mentioned focusing on B2C, B2B, and SMB. What is BigCommerce not going to be going forward?
A: Travis Hess, CEO: We will focus on discerning customers looking to scale. B2B requires a different approach than B2C, and small business focus will be on those looking to differentiate and scale, not all small businesses.
Q: Daniel, why have enterprise account numbers declined, and where are those customers going?
A: Daniel Lentz, CFO: We haven't seen the pipeline build as expected, particularly in B2B. We're focusing on dollarized retention and pipeline growth to offset attrition in smaller enterprise accounts.
Q: Travis, any surprises since stepping into the CEO role?
A: Travis Hess, CEO: No surprises. My focus has been on aligning go-to-market strategies with our product capabilities, which was a known challenge.
Q: How are you planning to double quota-carrying sales capacity in 2025?
A: Daniel Lentz, CFO: It will be a mix of hiring new talent and reallocating existing employees, focusing on expertise in B2C and B2B to broaden our solutions and market resonance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.