BigCommerce Holdings, Inc. (“BigCommerce”) (Nasdaq: BIGC), a
leading Open SaaS ecommerce platform for fast-growing and
established B2C and B2B brands, today announced financial results
for its fourth quarter and fiscal year ended December 31, 2023.
“One year ago, we set a goal to hit break-even on an adjusted
EBITDA basis in Q4 2023. We exceeded that goal with adjusted EBITDA
of $6.5 million, or approximately 8% of revenue, representing a
nearly 20-point profit margin improvement in the last year,” said
Brent Bellm. “In 2024, we are relentlessly focused on customer
success and delivering industry-leading products and service to our
customers and partners. We aspire to become the most loved
ecommerce platform in the world. Our innovations in AI and the
recent launch of our next generation Catalyst storefront technology
demonstrate our commitment to driving performance and success for
B2C and B2B brands and retailers around the world.”
“We have executed a notable financial transformation over the
last several quarters,” said Daniel Lentz, CFO at BigCommerce. “In
addition to the significant improvement in profitability, we have
made strong progress to drive positive operating cash flow of
approximately $13 million, growing to 16% of revenue in Q4. We are
seeing success from our Q3 2023 restructuring and 2024 financial
plan. Cross-sell results are improving, retention is improving, and
we continue to see healthy competitive win rates as well. We are
optimistic about our 2024 plans and are focused on driving
efficient revenue growth.”
Fourth Quarter Financial Highlights:
- Total revenue was $84.1 million, up 16% compared to the fourth
quarter of 2022.
- Total annual revenue run-rate (ARR) as of December 31, 2023 was
$336.5 million, up 8% compared to December 31, 2022.
- Subscription revenue was $60.6 million, up 14% compared to the
fourth quarter of 2022. ARR from accounts with at least one
enterprise plan (“Enterprise Accounts”) was $245.1 million as of
December 31, 2023, up 9% from December 31, 2022.
- ARR from Enterprise Accounts as a percent of total ARR was 73%
as of December 31, 2023, compared to 72% as of December 31,
2022.
- GAAP gross margin was 77%, compared to 74% in the fourth
quarter of 2022. Non-GAAP gross margin was 79%, compared to 76% in
the fourth quarter of 2022.
Other Key Business Metrics
- Number of enterprise accounts was 5,994, up 4% compared to the
fourth quarter of 2022.
- Average revenue per account (ARPA) of enterprise accounts was
$40,891, up 6% compared to the fourth quarter of 2022.
- Revenue in the Americas grew by 15% compared to the fourth
quarter of 2022.
- Revenue in EMEA grew by 24% and revenue in APAC grew by 22%
compared to the fourth quarter of 2022.
Operating Loss and Non-GAAP Operating Income
(Loss)
- GAAP operating loss was ($5.7) million, compared to ($34.7)
million in the fourth quarter of 2022.
- Non-GAAP operating income (loss) was $5.4 million, compared to
($9.4) million in the fourth quarter of 2022.
Net Income (Loss) and Earnings Per Share
- GAAP net loss was ($3.2) million, compared to ($33.0) million
in the fourth quarter of 2022.
- Non-GAAP net income (loss) was $7.9 million or 9% of revenue,
compared to ($7.7) million or (11%) of revenue in the fourth
quarter of 2022.
- GAAP net loss per share was ($0.04) based on 76.2 million
shares of common stock, compared to ($0.45) based on 73.8 million
shares of common stock in the fourth quarter of 2022.
- Non-GAAP net income (loss) per share was $0.10 based on 76.2
million shares of common stock, compared to ($0.10) based on 73.8
million shares of common stock in the fourth quarter of 2022.
Adjusted EBITDA
- Adjusted EBITDA was $6.5 million, compared to ($8.6) million in
the fourth quarter of 2022.
Cash
- Cash, cash equivalents, restricted cash, and marketable
securities totaled $271.3 million as of December 31, 2023.
- For the three months ended December 31, 2023, net cash used in
operating activities was $13.3 million, compared to ($2.7) million
for the same period in 2022. We reported free cash flow of $12.2
million
Fiscal Year 2023 Financial Highlights:
- Total revenue was $309.4 million, up 11% compared to fiscal
year 2022.
- Subscription revenue was $229.3 million, up 11% compared to
fiscal year 2022.
- GAAP gross margin was 76%, compared to 75% in fiscal year 2022.
Non-GAAP gross margin was 78%, compared to 76% in fiscal year
2022.
Operating Loss and Non-GAAP Operating Income
(Loss)
- GAAP operating loss was ($72.4) million, compared to ($140.6)
million in fiscal year 2022.
- Non-GAAP operating loss was ($5.7) million, compared to ($47.0)
million in fiscal year 2022.
Net Income (Loss) and Earnings Per Share
- GAAP net loss was ($64.7) million, compared to ($139.9) million
in fiscal year 2022.
- Non-GAAP net income (loss) was $2.1 million or 1% of revenue,
compared to ($46.3) million or (16.6%) of revenue in fiscal year
2022.
- GAAP net loss per share was ($0.86) based on 75.1 million
shares of common stock, compared to ($1.91) based on 73.2 million
shares of common stock in fiscal year 2022.
- Non-GAAP net income (loss) per share was $0.03 based on 75.1
million shares of common stock, compared to ($0.63) based on 73.2
million shares of common stock in fiscal year 2022.
Adjusted EBITDA
- Adjusted EBITDA was ($1.6) million, compared to ($43.6) million
in fiscal year 2022.
Cash
- For the twelve months ended December 31, 2023, net cash used in
operating activities was ($24.2) million, compared to ($89.4)
million for the same period in 2022. We reported free cash flow of
($28.4) million. Excluding the Feedonomics acquisition anniversary
related payment, net cash provided by operating activities would
have been $8.3 million for the twelve months ended December 31,
2023.
Business Highlights:
Corporate Highlights
- We have received several pieces of recognition from IDC.
BigCommerce was named a Leader in the IDC MarketScape for midmarket
B2B digital commerce applications, as well as a Major Player in the
IDC MarketScape for enterprise B2B digital commerce applications
and the IDC MarketScape for midmarket B2C digital commerce
applications. IDC also recognized BigCommerce with a 2023 SaaS
Customer Satisfaction Award for Digital Commerce.
- BigCommerce was honored with the North America Vendors in
Partnership (VIP) Award for 2024 Best Commerce or Multi-Vendor
Platform, which recognizes solution providers that power the retail
ecosystem and new ways that partnerships are formed and challenges
are overcome.
- We were named to Inc. Business Media’s 2023 Power Partner
Awards list, recognizing BigCommerce as a trusted business partner
in the ecommerce category for our ongoing commitment to equipping
brands and retailers with enterprise-grade functionality,
customization and performance to unleash innovation and drive
growth.
- Brands and retailers on BigCommerce again outpaced US and
global ecommerce sales during the critical holiday shopping season
of Thanksgiving through Cyber Monday. BigCommerce customers
experienced a 10% increase in gross merchandise value (GMV)
compared to the same period in 2022. Total orders were up 7%, and
average order value (AOV) increased 3%, compared to the previous
year.
Product Highlights
- In February, we announced the availability of Catalyst, our
next generation storefront technology, for developers and agency
partners. Purpose-built for the needs of mid-market and enterprise
B2C and B2B brands and retailers, Catalyst is designed to provide a
simplified starting point for BigCommerce customers, ecommerce
developers and agency partners to easily and quickly build online
stores using a composable architecture. A key component of Catalyst
is Makeswift, a composable page builder for websites built using
the popular Next.js framework that we acquired in the fourth
quarter in 2023. Makeswift simplifies the visual administration of
storefronts and content pages.
- We strengthened our B2B offerings with the launch of the new
B2B Edition Invoice Portal for large B2B suppliers, manufacturers,
distributors and wholesalers to modernize the invoice payment
process. The B2B Edition Invoice Portal provides an
enterprise-grade, out-of-the-box invoice payment experience that
allows B2B customers to incorporate invoice payments into a
centralized online purchasing workflow through the B2B Edition
Buyer Portal. B2B merchants now have the potential to improve
transaction efficiency, reduce operational burdens, and deliver
seamless user experiences that can drive brand loyalty and repeat
business.
Customer Highlights
- NVIDIA, the chipmaker and leading AI computing
company, launched a new store on BigCommerce, leveraging our
multi-storefront functionality and our integration with payment
gateway Digital River.
- MUJI, a fashion and lifestyle brand selling
Japanese influenced clothing, furniture and other goods, launched
six new stores across the EMEA region. MUJI is taking advantage of
BigCommerce’s strong partner ecosystem with integrations from
Adyen, PayPal, Klaviyo and Klevu to improve the brand’s online
presence and customer experience.
- Mizuno North America, a globally recognized
sports equipment and sportswear company, launched new US and
Canadian sites leveraging our multi-storefront
capability.
- Pharmacy2U, an online pharmacy based in the
UK, launched a fully headless site using Storyblok CMS to customize
the purchasing journey and BigCommerce APIs for the cart and
checkout journey.
- Smoky Mountain Knife Works, which calls itself
the “world’s largest knife showplace,” switched to BigCommerce
because of our strong feature set and ease of use. Built with
BigCommerce partner EY Studios, the new site takes advantage of our
integrations with PayPal, Yotpo, Gorgias, Avalara and others.
- L’azurde, the fast-growing MENA jewelry brand,
launched three new headless commerce sites for Dubai, Egypt and
Saudi Arabia with a custom OMS plugged in, built-in Arabic language
capabilities and additional integrations.
- Feedonomics, a BigCommerce company, also added several new
customers to its roster, including Ethan Allen, Conair,
Canva, GSF Car Parts Limited and
Kirk Waidelich.
Partner Highlights
- Our longtime partner PayPal recently launched Fastlane by
PayPal, a new one-click guest checkout experience that merchants
using PayPal’s platform will be able to offer their shoppers,
allowing them to make a fast and painless purchase. Customers
simply save their information with Fastlane to check out in as
little as one tap - no username or password to remember, no
personal information to update, and no need to share a credit card
with businesses all over the web. PayPal piloted Fastlane by PayPal
with select merchants on BigCommerce, and early results showed that
Fastlane can recognize 70% of guests and improve checkout speeds by
nearly 40% compared to a traditional guest checkout process.”
- BigCommerce and Marketplacer, a global technology platform that
enables brands, retailers, suppliers, communities and innovators to
build and grow successful online marketplaces at scale, announced a
strategic partnership that gives BigCommerce customers the ability
to transform their online stores into powerful marketplaces where
they can sell more diversified products and provide seamless
shopping experiences that drive conversions and accelerate
growth.
Q1 and 2024 Financial Outlook:
For the first quarter of 2024, we currently expect:
- Total revenue between $76.0 million to $78.0 million, implying
a year-over-year growth rate of 6% to 9%.
- Non-GAAP operating income is expected to be between $1.0
million to $2.0 million.
For the full year 2024, we currently expect:
- Total revenue between $327.1 million and $335.1 million,
translating into a year-over-year growth rate of 6% and 8%.
- Non-GAAP operating income between $8.5 million and $12.5
million.
Our first quarter and 2024 financial outlook is based on a
number of assumptions that are subject to change and many of which
are outside our control. If actual results vary from these
assumptions, our expectations may change. There can be no assurance
that we will achieve these results.
We do not provide guidance for operating loss, the most directly
comparable GAAP measure to Non-GAAP operating loss, and similarly
cannot provide a reconciliation between its forecasted Non-GAAP
operating loss and Non-GAAP net loss per share and these comparable
GAAP measures without unreasonable effort due to the unavailability
of reliable estimates for certain items. These items are not within
our control and may vary greatly between periods and could
significantly impact future financial results.
Conference Call Information
BigCommerce will host a conference call and webcast at 7:00 a.m.
CT (8:00 a.m. ET) on Thursday, February 22, 2024, to discuss its
financial results and business highlights. The conference call can
be accessed by dialing (833) 634-1254 from the United States and
Canada or (412) 317-6012 internationally and requesting to join the
“BigCommerce conference call.” The live webcast of the conference
call and other materials related to BigCommerce’s financial
performance can be accessed from BigCommerce’s investor relations
website at http://investors.bigcommerce.com.
Following the completion of the call through 11:59 p.m. ET on
Thursday, February 29, 2024, a telephone replay will be available
by dialing (877) 344-7529 from the United States, (855) 669-9658
from Canada or (412) 317-0088 internationally with conference ID
8007317. A webcast replay will also be available at
http://investors.bigcommerce.com for 12 months.
About BigCommerce
BigCommerce (Nasdaq: BIGC) is a leading open SaaS and composable
ecommerce platform that empowers brands and retailers of all sizes
to build, innovate and grow their businesses online. BigCommerce
provides its customers sophisticated enterprise-grade
functionality, customization and performance with simplicity and
ease-of-use. Tens of thousands of B2C and B2B companies across 150
countries and numerous industries rely on BigCommerce, including
Burrow, Coldwater Creek, Francesca’s, Harvey Nichols, King Arthur
Baking Co., MKM Building Supplies, Ted Baker, United Aqua Group and
Uplift Desk. For more information, please visit www.bigcommerce.com
or follow us on X and LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. In some cases, you can identify forward-looking statements
by terms such as “anticipate,” “believe,” “estimate,” “expect,”
“intend,” “outlook,” “may,” “might,” “plan,” “project,” “will,”
“would,” “should,” “could,” “can,” “predict,” “potential,”
“strategy, “target,” “explore,” “continue,” or the negative of
these terms, and similar expressions intended to identify
forward-looking statements. However, not all forward-looking
statements contain these identifying words. These statements may
relate to our market size and growth strategy, our estimated and
projected costs, margins, revenue, expenditures and customer and
financial growth rates, our Q1and 2024 financial outlook, our plans
and objectives for future operations, growth, initiatives or
strategies. By their nature, these statements are subject to
numerous uncertainties and risks, including factors beyond our
control, that could cause actual results, performance or
achievement to differ materially and adversely from those
anticipated or implied in the forward-looking statements. These
assumptions, uncertainties and risks include that, among others,
our business would be harmed by any decline in new customers,
renewals or upgrades, our limited operating history makes it
difficult to evaluate our prospects and future results of
operations, we operate in competitive markets, we may not be able
to sustain our revenue growth rate in the future, our business
would be harmed by any significant interruptions, delays or outages
in services from our platform or certain social media platforms,
and a cybersecurity-related attack, significant data breach or
disruption of the information technology systems or networks could
negatively affect our business. Additional risks and uncertainties
that could cause actual outcomes and results to differ materially
from those contemplated by the forward-looking statements are
included under the caption “Risk Factors” and elsewhere in our
filings with the Securities and Exchange Commission (the “SEC”),
including our Annual Report on Form 10-K for the year ended
December 31, 2022, our Quarterly report on Form 10-Q filed with the
SEC on November 8, 2023, and the future quarterly and current
reports that we file with the SEC. Forward-looking statements speak
only as of the date the statements are made and are based on
information available to BigCommerce at the time those statements
are made and/or management's good faith belief as of that time with
respect to future events. BigCommerce assumes no obligation to
update forward-looking statements to reflect events or
circumstances after the date they were made, except as required by
law.
Use of Non-GAAP Financial Measures
We have provided in this press release certain financial
information that has not been prepared in accordance with generally
accepted accounting principles in the United States (“GAAP”). Our
management uses these Non-GAAP financial measures internally in
analyzing our financial results and believes that use of these
Non-GAAP financial measures is useful to investors as an additional
tool to evaluate ongoing operating results and trends and in
comparing our financial results with other companies in our
industry, many of which present similar Non-GAAP financial
measures. Non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable financial
measures prepared in accordance with GAAP and should be read only
in conjunction with our consolidated financial statements prepared
in accordance with GAAP. A reconciliation of our historical
Non-GAAP financial measures to the most directly comparable GAAP
measures has been provided in the financial statement tables
included in this press release, and investors are encouraged to
review these reconciliations.
Annual Revenue Run-Rate
We calculate annual revenue run-rate (“ARR”) at the end of each
month as the sum of: (1) contractual monthly recurring revenue at
the end of the period, which includes platform subscription fees,
invoiced growth adjustments, feed management subscription fees,
recurring professional services revenue, and other recurring
revenue, multiplied by twelve to prospectively annualize recurring
revenue, and (2) the sum of the trailing twelve-month non-recurring
and variable revenue, which includes one-time partner integrations,
one-time fees, payments revenue share, and any other revenue that
is non-recurring and variable.
Enterprise Account Metrics
To measure the effectiveness of our ability to execute against
our growth strategy, particularly within the mid-market and
enterprise business segments, we calculate ARR attributable to
Enterprise Accounts. We define Enterprise Accounts as accounts with
at least one unique Enterprise plan subscription or an enterprise
level feed management subscription (collectively “Enterprise
Accounts”). These accounts may have more than one Enterprise plan
or a combination of Enterprise plans and Essentials plans.
Average Revenue Per Account
We calculate average revenue per account (ARPA) for accounts in
the Enterprise cohort at the end of a period by including
customer-billed revenue and an allocation of partner and services
revenue, where applicable. We allocate partner revenue, where
applicable, primarily based on each customer’s share of GMV
processed through that partner’s solution. For partner revenue that
is not directly linked to customer usage of a partner’s solution,
we allocate such revenue based on each customer’s share of total
platform GMV. Each account’s partner revenue allocation is
calculated by taking the account’s trailing twelve-month partner
revenue, then dividing by twelve to create a monthly average to
apply to the applicable period in order to normalize ARPA for
seasonality.
Adjusted EBITDA
We define Adjusted EBITDA as our net loss, excluding the impact
of stock-based compensation expense and related payroll tax costs,
third party acquisition-related costs, and other acquisition
related expenses, including contingent compensation arrangements
entered into in connection with acquisitions, depreciation,
amortization of acquisition-related intangible assets, interest
income, interest expense, restructuring charges, other
non-operating income and expense and our provision or benefit for
income taxes. The most directly comparable GAAP measure is net
loss.
Non-GAAP Operating Income (Loss)
We define Non-GAAP Operating Income (Loss) as our GAAP Loss from
operations, excluding the impact of stock-based compensation
expense and related payroll tax costs, third party
acquisition-related costs, and other acquisition related expenses,
including contingent compensation arrangements entered into in
connection with acquisitions, amortization of acquisition-related
intangible assets, and restructuring charges. The most directly
comparable GAAP measure is our loss from operations.
Non-GAAP Net Income (Loss)
We define Non-GAAP Net Income (Loss) as our GAAP net loss,
excluding the impact of stock-based compensation expense and
related payroll tax costs, third party acquisition-related costs,
and other acquisition related expenses, including contingent
compensation arrangements entered into in connection with
acquisitions, amortization of acquisition-related intangible
assets, and restructuring charges. The most directly comparable
GAAP measure is our net loss.
Non-GAAP Net Income (Loss) per Share
We define Non-GAAP Net Income (Loss) per Share as our Non-GAAP
Net Loss, defined above, divided by our basic and diluted GAAP
weighted average shares outstanding. The most directly comparable
GAAP measure is our net loss per share.
Free Cash Flow
We define Free Cash flow as our GAAP cash flow provided by (used
in) operating activities less our GAAP purchases of property and
equipment (Capital Expenditures). The most directly comparable GAAP
measure is our cash flow provided by (used in) operating
activities.
|
|
Media Relations Contact |
Investor Relations Contact |
Brad Hem |
Tyler Duncan |
PR@BigCommerce.com |
InvestorRelations@BigCommerce.com |
|
|
Consolidated Balance Sheets |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
71,719 |
|
|
$ |
91,573 |
|
Restricted cash |
|
|
1,126 |
|
|
|
1,457 |
|
Marketable securities |
|
|
198,415 |
|
|
|
211,941 |
|
Accounts receivable, net |
|
|
37,713 |
|
|
|
35,072 |
|
Prepaid expenses and other
assets, net |
|
|
24,733 |
|
|
|
28,033 |
|
Deferred commissions |
|
|
8,280 |
|
|
|
6,171 |
|
Total current
assets |
|
|
341,986 |
|
|
|
374,247 |
|
Property and equipment,
net |
|
|
10,233 |
|
|
|
9,083 |
|
Operating lease,
right-of-use-assets |
|
|
4,405 |
|
|
|
5,887 |
|
Prepaid expenses, net of
current portion |
|
|
1,240 |
|
|
|
470 |
|
Deferred commissions, net of
current portion |
|
|
7,056 |
|
|
|
7,037 |
|
Intangible assets, net |
|
|
27,052 |
|
|
|
27,583 |
|
Goodwill |
|
|
52,086 |
|
|
|
49,749 |
|
Total
assets |
|
$ |
444,058 |
|
|
$ |
474,056 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
7,982 |
|
|
$ |
7,013 |
|
Accrued liabilities |
|
|
2,652 |
|
|
|
2,937 |
|
Deferred revenue |
|
|
32,242 |
|
|
|
17,783 |
|
Current portion of debt |
|
|
547 |
|
|
|
0 |
|
Current portion of operating
lease liabilities |
|
|
2,542 |
|
|
|
2,609 |
|
Other current liabilities |
|
|
24,785 |
|
|
|
48,444 |
|
Total current
liabilities |
|
|
70,750 |
|
|
|
78,786 |
|
Long-term portion of debt |
|
|
339,614 |
|
|
|
337,497 |
|
Operating lease liabilities,
net of current portion |
|
|
7,610 |
|
|
|
10,008 |
|
Other long-term liabilities,
net of current portion |
|
|
551 |
|
|
|
2,093 |
|
Total
liabilities |
|
|
418,525 |
|
|
|
428,384 |
|
Commitments and contingencies
(Note 8) |
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
Common stock, $0.0001 par value; 500,000 shares authorized at
December 31, 2023 and 2022, respectively; 76,410 and 73,945 shares
issued and outstanding at December 31, 2023 and 2022,
respectively. |
|
|
7 |
|
|
|
7 |
|
Additional paid-in
capital |
|
|
620,021 |
|
|
|
576,851 |
|
Accumulated other
comprehensive gain (loss) |
|
|
163 |
|
|
|
(1,199 |
) |
Accumulated deficit |
|
|
(594,658 |
) |
|
|
(529,987 |
) |
Total stockholders’
equity |
|
|
25,533 |
|
|
|
45,672 |
|
Total liabilities and
stockholders’ equity |
|
$ |
444,058 |
|
|
$ |
474,056 |
|
Consolidated Statements of Operations |
|
(in thousands, except per share amounts) |
|
(unaudited) |
|
|
|
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
Cost of revenue(1) |
|
|
18,946 |
|
|
|
18,492 |
|
|
|
74,202 |
|
|
|
69,980 |
|
Gross profit |
|
|
65,203 |
|
|
|
53,939 |
|
|
|
235,192 |
|
|
|
209,095 |
|
Operating expenses:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
34,332 |
|
|
|
35,697 |
|
|
|
140,230 |
|
|
|
141,342 |
|
Research and development |
|
|
19,509 |
|
|
|
22,669 |
|
|
|
83,460 |
|
|
|
88,253 |
|
General and
administrative |
|
|
13,574 |
|
|
|
17,137 |
|
|
|
58,838 |
|
|
|
69,441 |
|
Acquisition related
expenses |
|
|
935 |
|
|
|
3,775 |
|
|
|
10,252 |
|
|
|
35,216 |
|
Restructuring charges |
|
|
219 |
|
|
|
7,332 |
|
|
|
6,434 |
|
|
|
7,332 |
|
Amortization of intangible
assets |
|
|
2,323 |
|
|
|
2,016 |
|
|
|
8,422 |
|
|
|
8,078 |
|
Total operating expenses |
|
|
70,892 |
|
|
|
88,626 |
|
|
|
307,636 |
|
|
|
349,662 |
|
Loss from operations |
|
|
(5,689 |
) |
|
|
(34,687 |
) |
|
|
(72,444 |
) |
|
|
(140,567 |
) |
Interest income |
|
|
3,183 |
|
|
|
2,068 |
|
|
|
11,493 |
|
|
|
4,198 |
|
Interest expense |
|
|
(719 |
) |
|
|
(708 |
) |
|
|
(2,884 |
) |
|
|
(2,828 |
) |
Other income (expense) |
|
|
(503 |
) |
|
|
601 |
|
|
|
(836 |
) |
|
|
(227 |
) |
Loss before provision for
income taxes |
|
|
(3,728 |
) |
|
|
(32,726 |
) |
|
|
(64,671 |
) |
|
|
(139,424 |
) |
Benefit (provision) for income
taxes |
|
|
552 |
|
|
|
(254 |
) |
|
|
0 |
|
|
|
(495 |
) |
Net loss |
|
$ |
(3,176 |
) |
|
$ |
(32,980 |
) |
|
$ |
(64,671 |
) |
|
$ |
(139,919 |
) |
Basic net loss per share |
|
$ |
(0.04 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.86 |
) |
|
$ |
(1.91 |
) |
Shares used to compute basic
net loss per share |
|
|
76,226 |
|
|
|
73,819 |
|
|
|
75,143 |
|
|
|
73,226 |
|
|
(1) Amounts include stock-based compensation expense and
associated payroll tax costs, as follows:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Cost of revenue |
|
$ |
1,147 |
|
|
$ |
1,280 |
|
|
$ |
4,949 |
|
|
$ |
4,226 |
|
Sales and marketing |
|
|
3,415 |
|
|
|
3,757 |
|
|
|
13,474 |
|
|
|
13,551 |
|
Research and development |
|
|
1,908 |
|
|
|
3,639 |
|
|
|
13,478 |
|
|
|
12,388 |
|
General and
administrative |
|
|
1,105 |
|
|
|
3,483 |
|
|
|
9,785 |
|
|
|
12,821 |
|
Consolidated Statements of Cash Flows |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,176 |
) |
|
$ |
(32,980 |
) |
|
$ |
(64,671 |
) |
|
$ |
(139,919 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
0 |
|
Depreciation and
amortization |
|
|
3,500 |
|
|
|
2,791 |
|
|
|
12,480 |
|
|
|
11,421 |
|
Amortization of discount on
debt |
|
|
496 |
|
|
|
492 |
|
|
|
1,976 |
|
|
|
1,960 |
|
Stock-based compensation
expense |
|
|
7,635 |
|
|
|
12,146 |
|
|
|
41,185 |
|
|
|
42,332 |
|
Provision for expected credit
losses |
|
|
(656 |
) |
|
|
1,237 |
|
|
|
805 |
|
|
|
8,244 |
|
Impairment of right-of-use
assets |
|
|
70 |
|
|
|
3,763 |
|
|
|
70 |
|
|
|
3,763 |
|
Other |
|
|
(5 |
) |
|
|
0 |
|
|
|
167 |
|
|
|
0 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
534 |
|
|
|
(5,072 |
) |
|
|
(3,877 |
) |
|
|
(20,337 |
) |
Prepaid expenses |
|
|
4,581 |
|
|
|
2,817 |
|
|
|
2,063 |
|
|
|
(1,134 |
) |
Deferred commissions |
|
|
(354 |
) |
|
|
(949 |
) |
|
|
(2,128 |
) |
|
|
(3,463 |
) |
Accounts payable |
|
|
1,710 |
|
|
|
(204 |
) |
|
|
962 |
|
|
|
(1,198 |
) |
Accrued and other
liabilities |
|
|
(1,083 |
) |
|
|
11,055 |
|
|
|
(25,836 |
) |
|
|
3,669 |
|
Deferred revenue |
|
|
27 |
|
|
|
2,211 |
|
|
|
12,561 |
|
|
|
5,305 |
|
Net cash provided by (used in)
operating activities |
|
|
13,279 |
|
|
|
(2,693 |
) |
|
|
(24,243 |
) |
|
|
(89,357 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for business
combinations |
|
|
(7,891 |
) |
|
|
0 |
|
|
|
(7,891 |
) |
|
|
(696 |
) |
Purchase of property and
equipment |
|
|
(1,043 |
) |
|
|
(990 |
) |
|
|
(4,179 |
) |
|
|
(5,196 |
) |
Maturity of marketable
securities |
|
|
36,960 |
|
|
|
38,900 |
|
|
|
243,167 |
|
|
|
103,550 |
|
Purchase of marketable
securities |
|
|
(39,207 |
) |
|
|
(44,297 |
) |
|
|
(228,281 |
) |
|
|
(214,184 |
) |
Net cash provided by (used in)
investing activities |
|
|
(11,181 |
) |
|
|
(6,387 |
) |
|
|
2,816 |
|
|
|
(116,526 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of
stock options |
|
|
136 |
|
|
145 |
|
|
|
3,849 |
|
|
|
209 |
|
Taxes paid related to net
share settlement of stock options |
|
|
(12 |
) |
|
|
0 |
|
|
|
(3,294 |
) |
|
|
0 |
|
Repayment of debt |
|
|
(263 |
) |
|
|
0 |
|
|
|
(394 |
) |
|
|
0 |
|
Proceeds from debt |
|
|
0 |
|
|
|
0 |
|
|
|
1,081 |
|
|
|
0 |
|
Net cash provided by (used in)
financing activities |
|
|
(139 |
) |
|
|
145 |
|
|
|
1,242 |
|
|
|
209 |
|
Net change in cash and cash
equivalents and restricted cash |
|
|
1,959 |
|
|
|
(8,935 |
) |
|
|
(20,185 |
) |
|
|
(205,674 |
) |
Cash and cash equivalents and
restricted cash, beginning of period |
|
|
70,886 |
|
|
|
101,965 |
|
|
|
93,030 |
|
|
|
298,704 |
|
Cash and cash equivalents and
restricted cash, end of period |
|
$ |
72,845 |
|
|
$ |
93,030 |
|
|
$ |
72,845 |
|
|
$ |
93,030 |
|
Supplemental cash flow
information: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
21 |
|
|
$ |
0 |
|
|
$ |
894 |
|
|
$ |
903 |
|
Cash paid for taxes |
|
$ |
242 |
|
|
$ |
0 |
|
|
$ |
583 |
|
|
$ |
32 |
|
Noncash investing and
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Changes in capital additions,
accrued but not paid |
|
$ |
168 |
|
|
$ |
0 |
|
|
$ |
168 |
|
|
$ |
0 |
|
Fair value of shares issued as
consideration for business combinations |
|
$ |
496 |
|
|
$ |
768 |
|
|
$ |
1,417 |
|
|
$ |
5,388 |
|
Reconciliation of
cash, cash equivalents and restricted cash within the condensed
consolidated balance sheet to the amounts shown in the statements
of cash flows above: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
71,719 |
|
|
$ |
91,573 |
|
|
$ |
71,719 |
|
|
$ |
91,573 |
|
Restricted cash |
|
|
1,126 |
|
|
|
1,457 |
|
|
|
1,126 |
|
|
|
1,457 |
|
Total cash, cash equivalents
and restricted cash |
|
$ |
72,845 |
|
|
$ |
93,030 |
|
|
$ |
72,845 |
|
|
$ |
93,030 |
|
|
|
Disaggregated Revenue:
|
|
Three months
endedDecember 31, |
|
|
Year endedDecember 31, |
|
(in
thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Subscription solutions |
|
$ |
60,613 |
|
|
$ |
53,298 |
|
|
$ |
229,265 |
|
|
$ |
205,800 |
|
Partner and services |
|
|
23,536 |
|
|
|
19,133 |
|
|
|
80,129 |
|
|
|
73,275 |
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
Revenue by Geography:
|
|
Three months
endedDecember 31, |
|
|
Year endedDecember 31, |
|
(in
thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas – U.S. |
|
$ |
64,055 |
|
|
$ |
56,086 |
|
|
$ |
236,502 |
|
|
$ |
216,639 |
|
Americas – other (1) |
|
|
3,837 |
|
|
|
3,131 |
|
|
|
14,103 |
|
|
|
12,124 |
|
EMEA |
|
|
9,475 |
|
|
|
7,657 |
|
|
|
34,661 |
|
|
|
27,743 |
|
APAC |
|
|
6,782 |
|
|
|
5,557 |
|
|
|
24,128 |
|
|
|
22,569 |
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
(1) Americas-other revenue includes revenue from North and
South America, other than the U.S.
|
Reconciliation of GAAP to Non-GAAP Results |
(in
thousands, except per share amounts) |
(unaudited) |
|
Reconciliation of loss from operations to
Non-GAAP operating income (loss):
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
$ |
(5,689 |
) |
|
$ |
(34,687 |
) |
|
$ |
(72,444 |
) |
|
$ |
(140,567 |
) |
Plus: stock-based compensation
expense and associated payroll tax costs |
|
|
7,575 |
|
|
|
12,159 |
|
|
|
41,686 |
|
|
|
42,986 |
|
Acquisition related costs |
|
|
935 |
|
|
|
3,775 |
|
|
|
10,252 |
|
|
|
35,216 |
|
Restructuring charges |
|
|
219 |
|
|
|
7,332 |
|
|
|
6,434 |
|
|
|
7,332 |
|
Amortization of intangible
assets |
|
|
2,323 |
|
|
|
2,016 |
|
|
|
8,422 |
|
|
|
8,078 |
|
Non-GAAP operating income
(loss) |
|
$ |
5,363 |
|
|
$ |
(9,405 |
) |
|
$ |
(5,650 |
) |
|
$ |
(46,955 |
) |
Non-GAAP operating income
(loss) as a percentage of revenue |
|
|
6.4 |
% |
|
|
(13.0 |
)% |
|
|
(1.8 |
)% |
|
|
(16.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss & net loss
per share to Non-GAAP net income (loss) & Non-GAAP net income
(loss) per share:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,176 |
) |
|
$ |
(32,980 |
) |
|
$ |
(64,671 |
) |
|
$ |
(139,919 |
) |
Plus: stock-based compensation
expense and associated payroll tax costs |
|
|
7,575 |
|
|
|
12,159 |
|
|
|
41,686 |
|
|
|
42,986 |
|
Acquisition related costs |
|
|
935 |
|
|
|
3,775 |
|
|
|
10,252 |
|
|
|
35,216 |
|
Restructuring charges |
|
|
219 |
|
|
|
7,332 |
|
|
|
6,434 |
|
|
|
7,332 |
|
Amortization of intangible
assets |
|
|
2,323 |
|
|
|
2,016 |
|
|
|
8,422 |
|
|
|
8,078 |
|
Non-GAAP net income
(loss) |
|
$ |
7,876 |
|
|
$ |
(7,698 |
) |
|
$ |
2,123 |
|
|
$ |
(46,307 |
) |
Shares used to compute basic
Non-GAAP net income (loss) per share |
|
|
76,226 |
|
|
|
73,819 |
|
|
|
75,143 |
|
|
|
73,226 |
|
Shares used to compute diluted
Non-GAAP net income (loss) per share (1) |
|
|
83,679 |
|
|
|
|
|
|
82,938 |
|
|
|
|
Non-GAAP basic net income
(loss) per share |
|
$ |
0.10 |
|
|
$ |
(0.10 |
) |
|
$ |
0.03 |
|
|
$ |
(0.63 |
) |
Non-GAAP diluted net income
(loss) per share (1) |
|
|
0.09 |
|
|
|
|
|
|
0.03 |
|
|
|
|
Non-GAAP net income (loss)
margin as a percentage of revenue |
|
|
9.4 |
% |
|
|
(10.6 |
)% |
|
|
0.7 |
% |
|
|
(16.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Due to
the loss from continuing operations for the three months and twelve
months ended December 31, 2022, there are no common shares added to
calculate diluted EPS because the effect would be
anti-dilutive. |
|
|
|
Reconciliation of net loss to adjusted
EBITDA:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,176 |
) |
|
$ |
(32,980 |
) |
|
$ |
(64,671 |
) |
|
$ |
(139,919 |
) |
Plus: stock-based compensation
expense and associated payroll tax costs |
|
|
7,575 |
|
|
|
12,159 |
|
|
|
41,686 |
|
|
|
42,986 |
|
Acquisition related costs |
|
|
935 |
|
|
|
3,775 |
|
|
|
10,252 |
|
|
|
35,216 |
|
Restructuring charges |
|
|
219 |
|
|
|
7,332 |
|
|
|
6,434 |
|
|
|
7,332 |
|
Depreciation |
|
|
1,177 |
|
|
|
775 |
|
|
|
4,058 |
|
|
|
3,343 |
|
Amortization of intangible
assets |
|
|
2,323 |
|
|
|
2,016 |
|
|
|
8,422 |
|
|
|
8,078 |
|
Interest income |
|
|
(3,183 |
) |
|
|
(2,068 |
) |
|
|
(11,493 |
) |
|
|
(4,198 |
) |
Interest expense |
|
|
719 |
|
|
|
708 |
|
|
|
2,884 |
|
|
|
2,828 |
|
Other (income) expenses |
|
|
503 |
|
|
|
(601 |
) |
|
|
836 |
|
|
|
227 |
|
Provision (benefit) for income
taxes |
|
|
(552 |
) |
|
|
254 |
|
|
|
0 |
|
|
|
495 |
|
Adjusted EBITDA |
|
$ |
6,540 |
|
|
$ |
(8,630 |
) |
|
$ |
(1,592 |
) |
|
$ |
(43,612 |
) |
Adjusted EBITDA margin as a
percentage of revenue |
|
|
7.8 |
% |
|
|
(11.9 |
)% |
|
|
(0.5 |
)% |
|
|
(15.6 |
)% |
|
|
Reconciliation of cost of revenue to Non-GAAP cost of
revenue:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
18,946 |
|
|
$ |
18,492 |
|
|
$ |
74,202 |
|
|
$ |
69,980 |
|
Less: stock-based compensation
expense and associated payroll tax costs |
|
|
1,147 |
|
|
|
1,280 |
|
|
|
4,949 |
|
|
|
4,226 |
|
Non-GAAP cost of revenue |
|
$ |
17,799 |
|
|
$ |
17,212 |
|
|
$ |
69,253 |
|
|
$ |
65,754 |
|
As a percentage of
revenue |
|
|
21.2 |
% |
|
|
23.8 |
% |
|
|
22.4 |
% |
|
|
23.6 |
% |
|
|
Reconciliation of sales and marketing expense to
Non-GAAP sales and marketing expense:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
$ |
34,332 |
|
|
$ |
35,697 |
|
|
$ |
140,230 |
|
|
$ |
141,342 |
|
Less: stock-based compensation
expense and associated payroll tax costs |
|
|
3,415 |
|
|
|
3,757 |
|
|
|
13,474 |
|
|
|
13,551 |
|
Non-GAAP sales and
marketing |
|
$ |
30,917 |
|
|
$ |
31,940 |
|
|
$ |
126,756 |
|
|
$ |
127,791 |
|
As a percentage of
revenue |
|
|
36.7 |
% |
|
|
44.1 |
% |
|
|
41.0 |
% |
|
|
45.8 |
% |
|
|
Reconciliation of research and development expense to
Non-GAAP research and development expense:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
19,509 |
|
|
$ |
22,669 |
|
|
$ |
83,460 |
|
|
$ |
88,253 |
|
Less: stock-based compensation
expense and associated payroll tax costs |
|
|
1,908 |
|
|
|
3,639 |
|
|
|
13,478 |
|
|
|
12,388 |
|
Non-GAAP research and
development |
|
$ |
17,601 |
|
|
$ |
19,030 |
|
|
$ |
69,982 |
|
|
$ |
75,865 |
|
As a percentage of
revenue |
|
|
20.9 |
% |
|
|
26.3 |
% |
|
|
22.6 |
% |
|
|
27.2 |
% |
|
|
Reconciliation of general and administrative expense to
Non-GAAP general and administrative expense:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
84,149 |
|
|
$ |
72,431 |
|
|
$ |
309,394 |
|
|
$ |
279,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General &
administrative |
|
$ |
13,574 |
|
|
$ |
17,137 |
|
|
$ |
58,838 |
|
|
$ |
69,441 |
|
Less: stock-based compensation
expense and associated payroll tax costs |
|
|
1,105 |
|
|
|
3,483 |
|
|
|
9,785 |
|
|
|
12,821 |
|
Non-GAAP general &
administrative |
|
$ |
12,469 |
|
|
$ |
13,654 |
|
|
$ |
49,053 |
|
|
$ |
56,620 |
|
As a percentage of
revenue |
|
|
14.8 |
% |
|
|
18.9 |
% |
|
|
15.9 |
% |
|
|
20.3 |
% |
|
|
Reconciliation of net cash provided by (used in)
operating activities to free cash flow:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$ |
13,279 |
|
|
$ |
(2,693 |
) |
|
$ |
(24,243 |
) |
|
$ |
(89,357 |
) |
Purchases of property and
equipment |
|
|
(1,043 |
) |
|
|
(990 |
) |
|
|
(4,179 |
) |
|
|
(5,196 |
) |
Free cash flow |
|
$ |
12,236 |
|
|
$ |
(3,683 |
) |
|
$ |
(28,422 |
) |
|
$ |
(94,553 |
) |
|
|
Reconciliation of net cash provided by (used in)
operating activities to Non-GAAP net cash provided by (used in)
operating activities:
|
|
Three months endedDecember 31, |
|
|
Year endedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$ |
13,279 |
|
|
$ |
(2,693 |
) |
|
$ |
(24,243 |
) |
|
$ |
(89,357 |
) |
Feedonomics anniversary
payout |
|
|
0 |
|
|
|
0 |
|
|
|
32,500 |
|
|
|
0 |
|
Non-GAAP net cash provided by
(used in) operating activities |
|
$ |
13,279 |
|
|
$ |
(2,693 |
) |
|
$ |
8,257 |
|
|
$ |
(89,357 |
) |
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