BigCommerce Announces Third Quarter 2022 Financial Results

AUSTIN, Texas, Nov. 03, 2022 (GLOBE NEWSWIRE) — BigCommerce Holdings, Inc. (“BigCommerce”) (Nasdaq: BIGC), a number one Open SaaS ecommerce platform for fast-growing and established B2C and B2B manufacturers, right this moment introduced monetary outcomes for its third quarter ended September 30, 2022.

“BigCommerce’s third quarter growth continued to outpace that of global ecommerce,” mentioned Brent Bellm, CEO at BigCommerce. “We released important new enterprise product capabilities, launched stores for prominent brands around the world, and announced our omnichannel certified partner program. In the current challenging macroeconomic picture, BigCommerce powers ecommerce success and innovation for businesses at all stages of growth.”

Third Quarter Financial Highlights:

• Total income was $72.4 million, up 22% in comparison with the third quarter of 2021.
• Total annual income run-rate (ARR) as of September 30, 2022 was $305.3 million, up 20% in comparison with September 30, 2021.
• Subscription income was $53.2 million, up 26% in comparison with the third quarter of 2021.
• Subscription ARR as of September 30, 2022 was $233.1 million, up 21% in comparison with September 30, 2021.
• Partner and companies income was $19.2 million, up 12% in comparison with September 30, 2021.
• ARR from accounts with no less than one enterprise plan (“Enterprise Accounts”) was $216.2 million as of September 30, 2022, up 35% from September 30, 2021.
• ARR from Enterprise Accounts as a % of complete ARR was 71% as of September 30, 2022, in comparison with 63% as of September 30, 2021.
• GAAP gross margin was 76%, in comparison with 79% within the third quarter of 2021. Non-GAAP gross margin was 77%, in comparison with 80% within the third quarter of 2021.

Third Quarter Financials:

Other Key Business Metrics

• Number of enterprise accounts was 5,560, up 16% in comparison with the third quarter of 2021.
• Average income per account (ARPA) of enterprise accounts was $38,885, up 17% in comparison with the third quarter of 2021.
• Revenue within the Americas grew by 23% in comparison with the third quarter of 2021.
• Revenue in EMEA grew by 31% and income in APAC grew by 2% in comparison with the third quarter of 2021.

Operating Income/(Loss)

• GAAP working loss was ($30.6) million, in comparison with ($21.3) million within the third quarter of 2021.
• Non-GAAP working loss was ($11.5) million, in comparison with ($3.8) million within the third quarter of 2021.

Net Income/(Loss) and Earnings Per Share

• GAAP web loss was ($30.3) million, in comparison with ($21.7) million within the third quarter of 2021.
• Non-GAAP web loss was ($11.2) million or (16%) of complete income, in comparison with ($4.2) million or (7%) of complete income within the third quarter of 2021.
• GAAP web loss per share was ($0.41) based mostly on 73.5 million weighted-average shares of widespread inventory excellent, in comparison with ($0.30) based mostly on 71.4 million weighted-average shares of widespread inventory excellent within the third quarter of 2021.
• Non-GAAP web loss per share was ($0.15) based mostly on 73.5 million weighted-average shares of widespread inventory excellent, in comparison with ($0.06) based mostly on 71.4 million weighted-average shares of widespread inventory excellent within the third quarter of 2021.

Adjusted EBITDA

• Adjusted EBITDA was ($10.9) million, in comparison with ($3.1) million within the third quarter of 2021.

Cash

• Cash, money equivalents and marketable securities totaled $308.1 million as of September 30, 2022.
• For the 9 months ended September 30, 2022, web money utilized in working actions was ($86.7) million, in comparison with ($31.5) million for a similar interval in 2021.
• For the 9 months ended September 30, 2022, free money move was ($90.9) million, which incorporates $32.5 million paid through the quarter as a part of the Feedonomics first anniversary acquisition associated cost. This compares to ($33.8) million for a similar interval in 2021.

Business Highlights:

• Corporate Highlights: In Q3, BigCommerce continued its worldwide growth with the addition of Austria, Denmark, Norway and Sweden. We efficiently accomplished SOC 1 Type 2 and SOC 2 Type 2 compliance audits and obtained corresponding attestation stories, demonstrating dedication to defending our prospects’ delicate and helpful info. These certifications are crucial to enterprise retailers and can in the end permit us to compete in additional offers. We additionally employed Rosie Rivel to be the corporate’s first CIO, main BigCommerce’s business purposes and data expertise groups with the target of remodeling inner expertise techniques to enhance productiveness, effectivity and effectiveness to the advantage of the corporate’s prospects, workers and buyers.
• Product Highlights: BigCommerce continues to launch options and product enhancements that resonate with our goal market of enterprise prospects. In Q3, we launched the closed beta of multi-location stock, and on the finish of 2022, we’re on observe to launch a set of recent and up to date APIs that allow retailers to create customized purchase on-line choose up in retailer experiences. As buyers more and more demand versatile, quick, and handy success choices, these APIs are foundational for enabling massive enterprise retailers to create the complicated multi-location stock situations that they should meet buyer expectations. Our buyer segmentation function is in open beta, in addition to our app extension function, which permits third events to deeply combine into the management panel expertise.
• Merchant Highlights: IAG Loyalty, the loyalty program for British Airways and different airways, launched The Wine Flyer, a brand new on-line retailer leveraging BigCommerce’s Open SaaS, API-first platform, the place the tens of millions of members of the British Airways Executive Club can change loyalty factors for wine and earn loyalty factors by making purchases. One Kings Lane, a US-based vendor of designer, classic, and unique residence furnishings, launched a fantastic customized headless website, benefiting from our integrations with Avalara, Braintree and Cybersource. Music Direct, the world’s largest on-line retailer for high-end audio gear, music and equipment, is now promoting on BigCommerce with a customized order move constructed on a customized Azure atmosphere that’s seamlessly built-in with the ERP. Hungry Harvest, which nobly reduces meals waste by promoting rescued produce that in any other case would have been discarded because of surplus, provider over-purchasing or bodily deformity, took benefit of our Multi-Storefront performance to launch two shops – one for his or her prospects’ on-demand purchases and one other for its subscribers. MKM Building Supply, a outstanding UK-based {hardware} and industrial constructing provide firm, launched a brand new headless retailer that permits them to have extra flexibility and an improved web site design. Jimmy Brings, considered one of Australia’s largest categorical alcohol supply companies, launched a progressive internet app storefront constructed on BigCommerce’s headless structure that takes benefit of our Australia-based internet hosting providing to reduce the potential for disruptions. And final however not least, Dippin’ Dots, the frozen deal with model, launched a brand new storefront that mixes a enjoyable and fascinating buyer expertise with checkout performance that ensures its temperature-sensitive merchandise are delivered when the customer needs them to be.
• Partner Highlights: BigCommerce introduced a strategic partnership with cryptocurrency leaders BitPay and CoinPayments to simply and securely ship cryptocurrency cost options to BigCommerce retailers, opening up alternatives for retailers to supply extra cost choices, broaden market share, faucet into new buyer bases and speed up worldwide development by means of innovation. In August, we introduced an expanded partnership with Affirm, enabling retailers of all sizes to have the ability to use Affirm’s Adaptive Checkout and supply eligible prospects with the flexibleness and management to decide on which cost schedule works finest for them. Earlier this week, we introduced the launch of Snapchat for BigCommerce in partnership with Snap, Inc. This offers BigCommerce retailers of all sizes the power to simply create, handle and optimize Snapchat advert campaigns to showcase merchandise and broaden viewers attain to tens of millions of Snapchat customers. In August and September, we held a collection of three Partner Summits, one every for our Americas, EMEA and APAC areas, the place we celebrated our joint success and progress and shared our roadmap and priorities for the longer term. During these summits, we introduced the launch of our new Omnichannel Certified Partner Program. Today’s retailers know they should meet their prospects the place they store and spend their time on-line, however they typically wrestle to find out the most effective mixture of channels for his or her business. This program solves that, and we’re doing it in a really BigCommerce approach – by leveraging our robust companion relationships with each company and tech companions. Our company companions profit from improved product knowledge and listings and feed optimization with Feedonomics, omnichannel development consultations with BigCommerce specialists, and entry to unique channel companion alpha and beta applications, together with Amazon Buy with Prime, Google, Mercado Libre, Meta, Snap, Target+ and Walmart Marketplace, amongst others, in choose areas. We’re already seeing substantial demand to hitch this program.

This autumn and 2022 Financial Outlook:
For the fourth quarter of 2022, the Company at the moment expects:

• Total income between $72.4 million to $74.2 million, implying an natural year-over-year development charge of 12% to 14% with income from Feedonomics within the base interval.
• Non-GAAP working loss is anticipated to be between $12.3 million to $14.3 million.
  For the complete 12 months 2022, the Company at the moment expects:
• Total income between $279.1 million and $280.9 million, translating right into a year-over-year development charge of 27% and 28%.
• Non-GAAP working loss between $49.9 million and $51.9 million.

The Company’s fourth quarter and 2022 monetary outlook is predicated on numerous assumptions which can be topic to alter and plenty of of that are exterior the Company’s management. If precise outcomes differ from these assumptions, the Company’s expectations could change. There could be no assurance that the Company will obtain these outcomes.

The Company doesn’t present steering for working loss, probably the most straight comparable GAAP measure to Non-GAAP working loss, and equally can’t present a reconciliation between its forecasted Non-GAAP working loss and Non-GAAP web loss per share and these comparable GAAP measures with out unreasonable effort as a result of unavailability of dependable estimates for sure objects. These objects aren’t inside the Company’s management and should differ tremendously between intervals and will considerably impression future monetary outcomes.

Conference Call Information
BigCommerce will host a convention name and webcast at 4:00 p.m. CT (5:00 p.m. ET) on Thursday, November 3, 2022, to debate its monetary outcomes and business highlights. The convention name could be accessed by dialing (833) 634-1254 from the United States and Canada or (412) 317-6012 internationally and requesting to hitch the “BigCommerce conference call.” The stay webcast of the convention name and different supplies associated to BigCommerce’s monetary efficiency could be accessed from BigCommerce’s investor relations web site at http://investors.bigcommerce.com.

Following the completion of the decision by means of 11:59 p.m. ET on Thursday, November 10, 2022, a phone replay will likely be accessible by dialing (877) 344-7529 from the United States, (855) 669-9658 from Canada or (412) 317-0088 internationally with convention ID 9289784. A webcast replay may even be accessible at http://investors.bigcommerce.com for 12 months.

About BigCommerce
BigCommerce (Nasdaq: BIGC) is a number one open software-as-a-service (SaaS) ecommerce platform that empowers retailers of all sizes to construct, innovate and develop their companies on-line. BigCommerce gives retailers refined enterprise-grade performance, customization and efficiency with simplicity and ease-of-use. Tens of hundreds of B2C and B2B corporations throughout 150 international locations and quite a few industries use BigCommerce to create stunning, participating on-line shops, together with Ben & Jerry’s, Molton Brown, S.C. Johnson, Skullcandy, Solo Stove, Ted Baker and Vodafone. Headquartered in Austin, BigCommerce has workplaces in London, Kyiv, San Francisco, and Sydney. For extra info, please go to www.bigcommerce.com or comply with us on Twitter, LinkedIn, Instagram and Facebook.

Forward-Looking Statements

This press launch comprises “forward-looking statements” inside the which means 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 circumstances, you possibly can establish forward-looking statements by phrases reminiscent of “anticipate,” “believe,” “estimate,” “expect,” “intend,” “outlook,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “strategy, “target,” “explore,” “continue,” or the damaging of those phrases, and related expressions supposed to establish forward-looking statements. However, not all forward-looking statements include these figuring out phrases. These statements could relate to our market measurement and development technique, our estimated and projected prices, margins, income, expenditures and buyer and monetary development charges, our This autumn and 2022 monetary outlook, our plans and targets for future operations, development, initiatives or methods. By their nature, these statements are topic to quite a few uncertainties and dangers, together with elements past our management, that would trigger precise outcomes, efficiency or achievement to vary materially and adversely from these anticipated or implied within the forward-looking statements. These assumptions, uncertainties and dangers embody that, amongst others, our business can be harmed by any decline in new prospects, renewals or upgrades, our restricted working historical past makes it troublesome to guage our prospects and future outcomes of operations, we function in aggressive markets, we could not be capable of maintain our income development charge sooner or later, our business can be harmed by any vital interruptions, delays or outages in companies from our platform or sure social media platforms, and a cybersecurity-related assault, vital knowledge breach or disruption of the knowledge expertise techniques or networks might negatively have an effect on our business. Additional dangers and uncertainties that would trigger precise outcomes and outcomes to vary materially from these contemplated by the forward-looking statements are included below the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), together with our Annual Report on Form 10-Okay for the 12 months ended December 31, 2021 filed with the SEC on March 1, 2022, our Quarterly Report on Form 10-Q filed with the SEC on August 8, 2022, and the longer term quarterly and present stories that we file with the SEC. Forward-looking statements communicate solely as of the date the statements are made and are based mostly on info accessible to BigCommerce on the time these statements are made and/or administration’s good religion perception as of that point with respect to future occasions. BigCommerce assumes no obligation to replace forward-looking statements to replicate occasions or circumstances after the date they have been made, besides as required by legislation.

Use of Non-GAAP Financial Measures

We have supplied on this press launch sure monetary info that has not been ready in accordance with typically accepted accounting rules within the United States (“GAAP”). Our administration makes use of these Non-GAAP monetary measures internally in analyzing our monetary outcomes and believes that use of those Non-GAAP monetary measures is beneficial to buyers as a further instrument to guage ongoing working outcomes and developments and in evaluating our monetary outcomes with different corporations in our trade, lots of which current related Non-GAAP monetary measures. Non-GAAP monetary measures aren’t meant to be thought-about in isolation or as an alternative choice to comparable monetary measures ready in accordance with GAAP and must be learn solely along side our consolidated monetary statements ready in accordance with GAAP. A reconciliation of our historic Non-GAAP monetary measures to probably the most straight comparable GAAP measures has been supplied within the monetary assertion tables included on this press launch, and buyers are inspired to overview these reconciliations.

Annual Revenue Run-Rate (ARR)

We calculate annual income run-rate (“ARR”) on the finish of every month because the sum of: (1) contractual month-to-month recurring income on the finish of the interval, which incorporates platform subscription charges, invoiced development changes, feed administration subscription charges, recurring skilled companies income, and different recurring income, multiplied by twelve to prospectively annualize recurring income, and (2) the sum of the trailing twelve-month non-recurring and variable income, which incorporates one-time companion integrations, one-time charges, funds income share, and some other income that’s non-recurring and variable.

Subscription ARR

We calculate subscription annual income run-rate (“ARR”) on the finish of every month as contractual month-to-month recurring income on the finish of the interval, which incorporates platform subscription charges, invoiced development changes, feed administration subscription charges, recurring skilled companies income, and different recurring income, multiplied by twelve to prospectively annualize recurring income.

Enterprise Account Metrics

To measure the effectiveness of our skill to execute towards our development technique, significantly inside the mid-market and enterprise business segments, we calculate ARR attributable to Enterprise Accounts. We outline Enterprise Accounts as accounts with no less than one distinctive Enterprise plan subscription or an enterprise stage feed administration subscription (collectively “Enterprise Accounts”). These accounts could have a couple of Enterprise plan or a mixture of Enterprise plans and Essentials plans.

Average Revenue Per Account

We calculate common income per account (ARPA) for accounts above the ACV threshold on the finish of a interval by together with customer-billed income and an allocation of companion and companies income, the place relevant. We allocate companion income, the place relevant, based on every buyer’s share of GMV processed by means of that companion’s resolution. For companion income that’s not straight linked to buyer utilization of a companion’s resolution, we allocate such income based mostly on every buyer’s share of complete platform GMV. Each account’s companion income allocation is calculated by taking the account’s trailing twelve-month companion income, then dividing by twelve to create a month-to-month common to use to the relevant interval with a purpose to normalize ARPA for seasonality.

Adjusted EBITDA

We outline Adjusted EBITDA as our web loss, excluding the impression of stock-based compensation expense and associated payroll tax expense, third social gathering acquisition-related prices, and different acquisition associated bills, together with contingent compensation preparations entered into in reference to acquisitions, depreciation and amortization expense, curiosity revenue, curiosity expense, adjustments in truthful worth of monetary devices, and our provision for revenue taxes. The most straight comparable GAAP measure is web loss.

Non-GAAP Operating Loss

We outline Non-GAAP Operating Loss as our GAAP Loss from operations, excluding the impression of stock-based compensation expense and associated payroll tax expense, third social gathering acquisition-related prices, and different acquisition associated bills, together with contingent compensation preparations entered into in reference to acquisitions and amortization of acquisition-related intangible belongings. The most straight comparable GAAP measure is our loss from operations.

Non-GAAP Net Loss

We outline Non-GAAP Net Loss as our GAAP web loss, excluding the impression of stock-based compensation expense and associated payroll tax expense, third social gathering acquisition-related prices, and different acquisition associated bills, together with contingent compensation preparations entered into in reference to acquisitions, amortization of acquisition-related intangible belongings and adjustments in truthful worth of monetary devices. The most straight comparable GAAP measure is our web loss.

Non-GAAP Net Loss per Share

We outline Non-GAAP Net Loss per Share as our Non-GAAP Net Loss, outlined above, divided by our primary and diluted GAAP weighted common shares excellent. The most straight comparable GAAP measure is our web loss per share.

Free Cash Flow

We outline Free Cash move as our GAAP money move from working actions plus our GAAP purchases of property and gear (Capital Expenditures). The most straight comparable GAAP measure is our money move from working actions.

Consolidated Balance Sheet
(in hundreds, besides per share quantities)

Consolidated Statement of Operations
(in hundreds, besides per share quantities)

Consolidated Statement of Cash Flows
(in hundreds)

Disaggregated Revenue:

Revenue by Geography:

Reconciliation of GAAP to Non-GAAP Results
(in hundreds, besides per share quantities)

Reconciliation of working loss to Non-GAAP working loss:

Reconciliation of web loss & web loss per share to Non-GAAP web loss & Non-GAAP web loss per share:

Reconciliation of web loss to adjusted EBITDA:

Reconciliation of price of income to Non-GAAP price of income:

Reconciliation of gross sales and advertising and marketing expense to Non-GAAP gross sales and advertising and marketing expense:

Reconciliation of analysis and improvement expense to Non-GAAP analysis and improvement expense:

Reconciliation of common and administrative expense to Non-GAAP common and administrative expense:

Reconciliation of web money utilized in working actions to free money move: