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BigCommerce Announces First Quarter Financial Results

May 2, 2022 4:05 PM

First Quarter Total Revenue of $66.1 Million, an Increase of 42% Versus Prior Year;Total ARR of $280.4 Million, an Increase of 43% Versus Prior Year

AUSTIN, Texas, May 02, 2022 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2022.

“Q1 marked another excellent period of growth and accomplishments at BigCommerce,” said Brent Bellm, CEO at BigCommerce. “With the launch of multi-storefront functionality, BigCommerce continues to offer full-featured, best-in-class enterprise capabilities, and our recent B2B acquisitions position us as a leading SaaS B2B platform. Enterprise ARR grew 68% year over year, and we were rated one of the best enterprise platforms in the world according to last week’s Forrester Wave reports for B2C and B2B Commerce Solutions.”

First Quarter Financial Highlights:

First Quarter Financials:

Other Key Business Metrics

Operating Income/(Loss)

Net Income/(Loss) and Earnings Per Share

Adjusted EBITDA

Cash

Business Highlights:

Q2 and 2022 Financial Outlook:

For the second quarter of 2022, the Company currently expects:

For the full year 2022, the Company currently expects:

The Company’s second quarter and 2022 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does 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 the Company’s 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 4:00 p.m. CT (5:00 p.m. ET) on Monday, May 2, 2022, to discuss its financial results and business highlights. The conference call can be accessed by dialing (833) 519-1347 from the United States or Canada or (914) 800-3909 internationally with conference ID 7905988. 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 8:00 p.m. ET on Monday, May 9, 2022, a telephone replay will be available by dialing (855) 859-2056 from the United States and Canada or (404) 537-3406 internationally with conference ID 7905988. A webcast replay will also be available at http://investors.bigcommerce.com for 12 months.

About BigCommerce

BigCommerce (Nasdaq: BIGC) is a leading open software-as-a-service (SaaS) ecommerce platform that empowers merchants of all sizes to build, innovate and grow their businesses online. BigCommerce provides merchants 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 use BigCommerce to create beautiful, engaging online stores, including Ben & Jerry’s, Molton Brown, S.C. Johnson, Skullcandy, SoloStove, Ted Baker and Vodafone. Headquartered in Austin, BigCommerce has offices in London, Kyiv, San Francisco, and Sydney. For more information, please visit www.bigcommerce.com or follow us on Twitter, LinkedIn, Instagram and Facebook.

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 Q2 and 2022 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, 2021 filed with the SEC on March 1, 2022 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.

Accounts with Greater than $2,000 ACV

We track the total number of accounts with annual contract value (“ACV”) greater than $2,000 (the “ACV threshold”) as of the end of a monthly billing period. To define this $2,000 ACV cohort, we include only subscription plan revenue and exclude partner and services revenue and recurring services revenue. We consider all stores and brands added and subtracted as of the end of the monthly billing period. This metric includes accounts that may have either one single store or brand above the ACV threshold or multiple stores or brands that together exceed the ACV threshold.

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 above the ACV threshold 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 expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, depreciation and amortization expense, interest income, interest expense, changes in fair value of financial instruments, and our provision for income taxes. The most directly comparable GAAP measure is net loss.

Non-GAAP Operating Loss

We define Non-GAAP Operating Loss as our GAAP Loss from operations, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions and amortization of acquisition-related intangible assets. The most directly comparable GAAP measure is our loss from operations.

Non-GAAP Net Loss

We define Non-GAAP Net Loss as our GAAP net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, 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 changes in fair value of financial instruments. The most directly comparable GAAP measure is our net loss.

Non-GAAP Net Loss per Share

We define Non-GAAP Net 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 from operating activities plus our GAAP purchases of property and equipment (Capital Expenditures). The most directly comparable GAAP measure is our cash flow from operating activities.

Media Relations Contact Investor Relations Contact
Brad Hem Amit Marwaha
[email protected] [email protected]
(737) 236-2363

Consolidated Balance Sheet(in thousands, except per share amounts)

March 31, December 31,
2022 2021
Assets
Current assets
Cash and cash equivalents $250,934 $297,561
Restricted cash 1,156 1,143
Marketable securities 125,175 102,315
Accounts receivable, net 40,995 39,806
Prepaid expenses and other assets 10,570 9,710
Deferred commissions 4,412 4,013
Total current assets 433,242 454,548
Property and equipment, net 7,980 7,429
Right-of-use-assets 11,652 9,515
Prepaid expenses, net of current portion 778 831
Deferred commissions, net of current portion 5,932 5,673
Intangible assets, net 32,995 35,032
Goodwill 42,432 42,432
Total assets $535,011 $555,460
Liabilities and stockholders’ equity
Current liabilities
Accounts payable $7,924 $8,211
Accrued liabilities 3,495 2,941
Deferred revenue 13,220 12,752
Current portion of operating lease liabilities 2,957 2,653
Other current liabilities 37,210 36,254
Total current liabilities 64,806 62,811
Deferred revenue, net of current portion 905 1,359
Long-term debt 336,025 335,537
Operating lease liabilities, net of current portion 11,941 10,217
Other long-term liabilities, net of current portion 11,457 7,248
Total liabilities 425,134 417,172
Commitments and contingencies (Note 7)
Stockholders’ equity
Preferred stock, $0.0001 par value; 10,000 shares authorizedat March 31, 2022 and December 31, 2021; 0 sharesissued and outstanding, at March 31, 2022 and December 31, 2021 — —
Common stock, $0.0001 par value; 500,000 shares Series 1 and, 5,051 shares Series 2authorized at March 31, 2022 and December 31, 2021; 72,673, and 72,311 shares Series 1issued and outstanding at March 31, 2022 and December 31, 2021, respectively, and 0 shares Series 2 issued and, outstanding atMarch 31, 2022, and December 31, 2021, respectively 7 7
Additional paid-in capital 537,779 528,540
Accumulated other comprehensive loss (804) (191)
Accumulated deficit (427,105) (390,068)
Total stockholders’ equity 109,877 138,288
Total liabilities and stockholders’ equity $535,011 $555,460

Consolidated Statements of Operations(in thousands, except per share amounts)

Three months ended March 31,
2022 2021
Revenue $66,050 $46,660
Cost of revenue 17,103 9,250
Gross profit 48,947 37,410
Operating expenses:
Sales and marketing 32,173 20,809
Research and development 20,944 13,535
General and administrative 17,312 11,608
Acquisition related expenses 12,660 —
Amortization of intangible assets 2,037 —
Total operating expenses 85,126 45,952
Loss from operations (36,179) (8,542)
Interest income 122 12
Interest expense (709) —
Other expense (156) (14)
Loss before provision for income taxes (36,922) (8,544)
Provision for income taxes 115 —
Net loss $(37,037) $(8,544)
Basic and diluted net loss per share attributable to commonstockholders $(0.51) $(0.12)
Weighted average shares used to compute basic and diluted netloss per share attributable to common stockholders 72,476 69,792

Consolidated Statement of Cash Flows(in thousands)

Three months ended March 31, Three months ended March 31,
2022 2021
Cash flows from operating activities
Net loss $(37,037) $(8,544)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 2,826 706
Amortization of discount on debt 488 —
Stock-based compensation 8,962 5,171
Allowance for credit losses 1,313 726
Changes in operating assets and liabilities:
Accounts receivable (2,502) (3,899)
Prepaid expenses (806) (582)
Deferred commissions (658) (796)
Accounts payable (287) (1,130)
Accrued and other liabilities 5,702 (6,399)
Deferred revenue 14 1,989
Net cash used in operating activities (21,985) (12,758)
Cash flows from investing activities:
Purchase of marketable securities (32,473) (18,374)
Purchase of property and equipment (1,340) (480)
Maturity of marketable securities 9,000 —
Net cash used in investing activities (24,813) (18,854)
Cash flows from financing activities:
Proceeds from exercise of stock options 184 1,741
Net cash provided by financing activities 184 1,741
Net change in cash and cash equivalents and restricted cash (46,614) (29,871)
Cash and cash equivalents and restricted cash, beginning of period 298,704 220,607
Cash and cash equivalents and restricted cash, end of period $252,090 $190,736
Supplemental cash flow information:
Cash paid for interest $472 $—
Cash paid for taxes $32 $—
Non-cash investing and financing activities:
Changes in capital additions, accrued but not paid $96 $—
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 250,934 189,578
Restricted cash 1,156 1,158
Total cash, cash equivalents and restricted cash $252,090 $190,736

Disaggregated Revenue:

Three months ended March 31,
(in thousands) 2022 2021
Subscription solutions $47,987 $32,004
Partner and services 18,063 14,656
Total revenue $66,050 $46,660

Revenue by Geography:

Three months ended March 31,
(in thousands) 2022 2021
Revenue:
Americas – U.S. $51,500 $36,117
Americas – other 2,684 1,734
EMEA 6,284 4,397
APAC 5,582 4,412
Total revenue $66,050 $46,660

Reconciliation of GAAP to Non-GAAP Results(in thousands, except per share amounts)

Reconciliation of operating loss to Non-GAAP operating loss

Three months ended March 31,
2022 2021
Operating loss $(36,179) $(8,542)
Less: stock-based compensation expense 8,962 5,171
Less: payroll tax associated with stock-based compensation expense 146 248
Less: third-party acquisition related costs 12,660 —
Less: amortization of intangible assets $2,037 $—
Non-GAAP operating loss (12,374) (3,123)
Non-GAAP operating margin (18.7)% (6.7)%

Reconciliation of net loss & net loss per share to Non-GAAP net loss & Non-GAAP net loss per share

Three months ended March 31,
2022 2021
Net loss $(37,037) $(8,544)
Less: stock-based compensation expense 8,962 5,171
Less: payroll tax associated with stock-based compensation expense 146 248
Less: third-party acquisition related costs 12,660 —
Less: amortization of intangible assets 2,037 0
Non-GAAP net loss (13,232) (3,125)
Non-GAAP net loss per share (0.18) (0.04)
Weighted average shares used to compute basic and diluted net loss per share attributable to common stockholders 72,476 69,792
Non-GAAP net loss margin (20.0)% (6.7)%

Reconciliation of net loss to adjusted EBITDA

Three months ended March 31,
2022 2021
Net loss $(37,037) $(8,544)
Stock-based compensation expense 8,962 5,171
Payroll tax associated with stock-based compensation expense 146 248
Third-party acquisition related costs 12,660 —
Depreciation 789 706
Amortization of intangible assets 2,037 —
Interest income (122) (12)
Interest expense 709 —
Provision for incometaxes 115 —
Adjusted EBITDA $(11,741) $(2,431)
Adjusted EBITDA Margin (17.8)% (5.2)%

Reconciliation of cost of revenue to Non-GAAP cost of revenue

Three months ended March 31,
2022 2021
Cost of revenue $17,103 $9,250
Less: share-based compensation expense 862 387
Less: payroll tax associated with share-based compensation expense 6 28
Non-GAAP cost of revenue 16,235 8,835
As a % of revenue 24.6% 18.9%

Reconciliation of sales and marketing expense to Non-GAAP sales and marketing expense

Three months ended March 31,
2022 2021
Sales and marketing $32,173 $20,809
Less: share-based compensation expense 2,583 1,579
Less: payroll tax associated with share-based compensation expense 49 65
Non-GAAP sales and marketing 29,541 19,165
As a % of revenue 44.7% 41.1%

Reconciliation of research and development expense to Non-GAAP research and development expense

Three months ended March 31,
2022 2021
Research and development $20,944 $13,535
Less: share-based compensation expense 2,526 1,148
Less: payroll tax associated with share-based compensation expense 37 119
Non-GAAP research and development 18,381 12,268
As a % of revenue 27.8% 26.3%

Reconciliation of general and administrative expense to Non-GAAP general and administrative expense

Three months ended March 31,
2022 2021
General & administrative $17,312 $11,608
Less: share-based compensation expense 2,991 2,057
Less: payroll tax associated with share-based compensation expense 54 36
Non-GAAP general & administrative 14,267 9,515
As a % of revenue 21.6% 20.4%

Reconciliation of net cash used in operating activities to Free Cash Flow

Three months ended March 31, Three months ended March 31,
(in thousands) 2022 2021
Net cash used in operating activities $(21,985) $(12,758)
Capital expenditures $(1,340) $(480)
Free cash flow $(23,325) $(13,238)

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Source: BigCommerce Holdings, Inc.

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