Commerce.Com, Inc. (BigCommerce Holdings, Inc.) — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024. The filing identifies the registrant as BigCommerce Holdings, Inc. (Nasdaq: BIGC); this differs from the company name in the request metadata.
Business context
BigCommerce operates a single-segment SaaS ecommerce platform, including subscription services, Feedonomics feed management, and partner and professional services. It reported 5,970 enterprise accounts at quarter-end and describes its strategy as “Open SaaS,” with an increased focus on enterprise customers, retention, and cross-selling.
Key financial metrics
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Revenue | $80.4 million | $71.8 million |
| Gross profit / gross margin | $61.9 million / 77.1% | $54.3 million / 75.7% |
| Operating loss | $8.2 million | $23.7 million |
| Net loss | $6.4 million | $22.1 million |
| Basic net loss per share | $0.08 | $0.30 |
| Cash used in operating activities | $3.4 million | $20.8 million |
Subscription solutions revenue was $61.0 million, up 13.3%; partner and services revenue was $19.4 million, up 8.1%. Management attributed subscription growth primarily to enterprise, mid-market, and Feedonomics activity. U.S. revenue was $61.1 million, or approximately 76% of total revenue.
At March 31, 2024, cash and cash equivalents were $60.9 million, restricted cash was $1.1 million, and marketable securities were $204.3 million. Total current assets were $343.5 million and current liabilities were $67.9 million. Debt carrying value was $340.5 million, principally the $345.0 million principal amount of 0.25% convertible notes due October 2026. The notes are senior unsecured obligations; conversion conditions had not been met at quarter-end.
ARR was $340.1 million, up from $316.7 million a year earlier; Subscription ARR was $258.6 million, up from $243.5 million. ARR attributable to enterprise accounts was $248.2 million. The company reported $171.8 million of remaining performance obligations, approximately 60% expected to be recognized within the following 12 months.
Changes versus the prior comparable period
- Revenue increased 12.0%, while gross margin improved 1.4 percentage points to 77.1%.
- Operating loss narrowed by $15.4 million and net loss narrowed by $15.7 million. Lower operating expenses—including lower sales and marketing, R&D, and general and administrative costs—contributed; acquisition-related expense also fell substantially.
- Operating cash outflow improved by $17.4 million. Cash, cash equivalents, and restricted cash declined by $10.8 million during Q1 2024, versus a $30.8 million decline in Q1 2023.
- Year-over-year revenue growth was broad across reported regions; EMEA grew 15.1%, the fastest of the listed regions.
Outlook, commentary, risks, and unusual items
- Management said first-quarter net retention rates improved versus the prior quarter, but did not provide a quarterly NRR value. It cited longer sales cycles and elevated scrutiny of platform spending, while expressing the view that these conditions may improve.
- No specific financial guidance for fiscal 2024 is provided in the supplied filing text. Management stated that existing cash, cash equivalents, and operating cash flows should meet working-capital and capital-expenditure needs for at least the next 12 months.
- The company continues a 2023 workforce restructuring intended to support profitable growth; it reported no Q1 2024 restructuring charges and did not expect further material charges under the plan.
- Disclosure controls and procedures were deemed ineffective because of a previously disclosed material weakness in IT general controls, involving user access, program change management, and monitoring of critical interface jobs. Management said remediation efforts would continue through 2024.
- Management reported no pending legal proceeding expected to have a material adverse effect and no material change to the risk factors in its 2023 Form 10-K. Risks discussed include macroeconomic conditions, competition, product development, international expansion, cybersecurity and regulatory changes, and acquisition integration.
- The company holds cash balances above FDIC-insured limits and is exposed to interest-rate and credit risk. It estimated that a 100-basis-point rate move could change investment market value by approximately $2 million.
Important facts for investors to verify
- Confirm the issuer identity and ticker: the filing is for BigCommerce Holdings, Inc. (BIGC), not a registrant named Commerce.Com, Inc.
- Review the remediation progress and any subsequent updates on the material weakness in IT controls.
- Assess cash burn, the composition and liquidity of the $204.3 million securities portfolio, and the company’s ability to meet obligations as the 2026 convertible notes approach maturity.
- Track revenue and ARR growth, enterprise account trends, retention and churn, and whether longer sales cycles and spending scrutiny ease.
- Consider stock-based compensation, dilution, and the potential effects of convertible notes and equity awards; Q1 stock-based compensation expense was $8.4 million.