BigCommerce Holdings, Inc. — FY 2023 Form 10-K
Reporting period: Fiscal year ended December 31, 2023. Although the request references 2023 Q4, this filing reports full-year results, not standalone fourth-quarter results. The filing identifies the registrant as BigCommerce Holdings, Inc.
Business context
BigCommerce provides a subscription-based SaaS ecommerce platform, including store hosting and tools for online, marketplace, social, and in-store commerce. It serves SMB, mid-market, and enterprise merchants, and also earns partner and services revenue. At year-end, it reported 5,994 enterprise accounts and customers in more than 150 countries.
Key financial metrics
| Metric | FY 2023 | FY 2022 |
|---|---|---|
| Revenue | $309.4 million | $279.1 million |
| Subscription solutions revenue | $229.3 million | $205.8 million |
| Partner and services revenue | $80.1 million | $73.3 million |
| Gross profit / gross margin | $235.2 million / 76.0% | $209.1 million / 74.9% |
| Operating loss | $72.4 million | $140.6 million |
| Net loss | $64.7 million | $139.9 million |
| Basic net loss per share | $0.86 | $1.91 |
| Net cash used in operating activities | $24.2 million | $89.4 million |
Revenue grew 10.9%. Subscription revenue rose 11.4%; partner and services revenue rose 9.4%. Gross margin improved by 1.1 percentage points. The smaller operating and net losses reflect lower operating expenses and higher interest income, among other factors; the company remained unprofitable.
Liquidity and debt: At year-end, cash and cash equivalents were $71.7 million and marketable securities were $198.4 million; restricted cash was $1.1 million. The company reported $271.3 million in cash, cash equivalents, restricted cash, and marketable securities combined. Debt carrying value was $340.2 million, primarily $345.0 million principal of 0.25% convertible senior notes due October 2026. Management said available liquidity and expected operating cash flows should fund operations and capital needs for at least 12 months.
Other indicators: Total ARR was $336.5 million, up from $311.7 million; subscription ARR was $256.4 million, up from $238.4 million. Enterprise-account ARR was $245.1 million, or 73% of total ARR. Enterprise-account net revenue retention fell to 100% from 111%. Remaining performance obligations were $158.4 million, of which the company expected to recognize about 60% in the following 12 months.
Material changes and unusual items
- Revenue growth slowed from 26.9% in 2022 to 10.9% in 2023.
- Operating expenses declined to $307.6 million from $349.7 million. Acquisition-related expenses fell to $10.3 million from $35.2 million, while sales and marketing and R&D expenses also decreased.
- Gross margin recovered from 74.9% to 76.0%, following a decline to 74.9% in 2022 from 77.9% in 2021.
- In September 2023, the company began a restructuring affecting approximately 7% of its global workforce. It recorded about $5.5 million of related expense and did not expect further material charges under that plan.
- The October 2023 Makeswift acquisition had estimated consideration of $9.2 million. Its results were not separately material to consolidated results.
- Operating cash use improved substantially year over year. The company also paid the final $32.5 million Feedonomics acquisition payment during 2023.
Outlook, risks, and contingencies
The filing provides no specific numerical revenue or earnings guidance. Management describes a focus on profitable growth while continuing investment in its Open SaaS platform, enterprise selling, partnerships, and international expansion. It cites operating leverage and margin improvement as objectives, not guaranteed outcomes.
Principal risks include continued losses, intense competition, execution of the enterprise-sales strategy, slower enterprise sales cycles, customer retention and partner dependence, cybersecurity and service availability, evolving privacy and other regulations, economic conditions, and geopolitical disruption in Ukraine. One strategic partner accounted for 12% of revenue in 2023; one customer represented more than 5% of revenue.
Financial reporting controls: Management concluded disclosure controls and internal control over financial reporting were ineffective at December 31, 2023 because of a material weakness in IT general controls over user access, program change management, and IT operations. The auditor issued an adverse opinion on internal control over financial reporting, but an unqualified opinion on the financial statements. Management was implementing remediation and expected to complete it as early as practicable in fiscal 2024; effectiveness had not yet been established.
Other commitments: Unconditional purchase obligations for third-party services totaled $34.3 million, mainly due in 2024–2026. The filing says there were no pending legal proceedings expected to have a material adverse effect and no material off-balance-sheet arrangements.
Important facts for investors to verify
- Whether the material weakness remediation is completed and tested, and whether subsequent filings report effective controls.
- Whether revenue growth, enterprise-account expansion, and partner monetization can improve without further deterioration in enterprise retention (100% NRR in 2023).
- Whether operating cash use continues to decline and liquidity remains adequate relative to ongoing losses and the 2026 convertible-note maturity.
- How the 2023 restructuring and cost reductions affect service quality, sales execution, and future margins.
- Customer and partner concentration, including the strategic partner responsible for 12% of 2023 revenue, and any changes in those exposures.