BigCommerce Rising: Q2 2024 Recap

One could argue BigCommerce needs an alternative revenue source. Amazon’s AWS, its cloud computing platform, drives most of the company’s profit. Shopify Payments, a credit card processor, produces nearly two-thirds of overall revenue, far more than core subscriptions to the platform.

Yet core platform subscriptions account for roughly 75% of BigCommerce’s revenue. The rest comes from “partners,” mostly third-party app developers who share proceeds with the company.

Regardless, BigCommerce is by any measure an ecommerce pioneer.

We first crossed paths in 2008 when Armando Roggio, our longtime senior contributor, profiled Interspire, then a four-year-old Australia-based licensed cart provider. The CEO lamented not having a hosted version of its cart.

By 2010, in our next profile, the hosted version was up and running. The founders called it BigCommerce.

In 2013, BigCommerce caught the attention of Steve Case, the AOL visionary, who invested $40 million of equity via his Revolution Growth fund, essentially controlling the company and installing a new CEO, Brent Bellm.

In August 2020, BigCommerce went public, raising $216 million on the Nasdaq exchange under the “BIGC” symbol.

Q2 2024 Financials

Post IPO, BigCommerce’s share price quickly rose, reaching $120 in September 2020. It now trades at roughly $6 and has long been a favorite of short sellers, investors who bet on the price decreasing.

The company has posted annual net losses every year since the public offering. Its 2023 revenue, $309 million, was a fraction of Shopify’s $7 billion.

Yet better days are coming. BigCommerce’s Q2 2024 revenue, $81.8 million, is 8% higher than the same period last year. Net losses have steadily shrunk to $11.3 million in Q2.

Notably, the company is cash flow positive. Included in the $11.3 million net loss are non-cash expenses that, when added back, equate to nearly $12 million of positive cash flow for the quarter.

Investors have noticed. Multiple analysts now project net profits for all of 2024 and a target share price of nearly $10, a 67% increase.

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