BigCommerce Holdings (BIGC) AI Stock Analysis

• Market Cap: $398.89M
• Dividend Yield: N/A
• Average Volume (3M): 833.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 5.33%
• EPS Growth: 58.41%
• Country: US
• Employees: 1,161
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 80,098,340
• 10 Day Avg. Volume: 848,464
• 30 Day Avg. Volume: 833,347
• PEG Ratio: -0.06
• Price to Book (P/B): 14.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.77
• Enterprise Value/Market Cap: 2.25
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.51
• Enterprise Value/Ebitda: -14.87
• 1Y Price Target: $6.64
• Price Target Upside: 32.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 54 Neutral
• Price Target: $5.50 ▲(10.00%Upside)

BigCommerce Holdings shows promise with revenue growth and cash flow improvements but faces significant challenges in profitability and leverage. The technical analysis indicates a lack of strong momentum, and valuation metrics are unattractive due to negative earnings. While the earnings call provided some positive insights, macroeconomic risks remain a concern. The company needs to enhance operational efficiency and leverage management to improve its financial standing.

Positive Factors

Leadership and Strategy

BigCommerce's new CEO, Travis Hess, brings a wealth of experience in the e-commerce space, and his leadership is focused on accelerating ARR growth.

Revenue Growth

Average revenue per account (ARPA) grew +8.9% y/y, and accelerated for the third-straight quarter to $45.3k.

Strategic Developments

The unified strategy between core BigCommerce, Feedonomics, and Makeswift is ready, and is already driving good pipeline activity.

Negative Factors

Competition and Market Pressure

Despite the strategic changes, growth has been pressured and there is strong competition from Shopify, which continues to push up-market.

Customer Base

The Enterprise customer count also decreased by 59 q/q, the third-straight quarter of net customer losses.

Financial Performance

Fundamentals continued to deteriorate through 2024, with a deceleration in ARR growth and a QoQ decline in Enterprise Accounts.

BigCommerce Holdings Business Overview & Revenue Model

Company Description

BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company's platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2021, it served approximately 60,000 online stores across industries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.

How the Company Makes Money

BigCommerce makes money primarily through subscription fees charged for access to its e-commerce platform. These fees vary based on the plan selected by the customer, with options ranging from standard to enterprise-level packages that offer additional features and support. The company also generates revenue through transaction fees on sales processed through its platform, as well as from partnerships and integrations with third-party applications, payment gateways, and other services that enhance the functionality of its core offering. Additionally, BigCommerce occasionally earns from professional services such as consulting and implementation support, which aid businesses in optimizing their online stores.

BigCommerce Holdings Financial Statement Overview

Summary

BigCommerce Holdings displays strengths in revenue growth and cash flow improvements, crucial for the software application industry. Despite ongoing profitability challenges and high leverage, the company is making strides in managing cash flows and improving equity returns. Continued focus on operational efficiency and managing financial leverage will be key to sustaining growth and achieving profitability.

Income Statement

BigCommerce Holdings has demonstrated positive revenue growth with a Revenue Growth Rate of 17.4% from 2023 to 2024 and 0.6% in TTM (Trailing-Twelve-Months). The Gross Profit Margin is robust at 76.5% TTM, indicating strong cost control relative to revenue. However, the company is still facing profitability challenges with a negative Net Profit Margin of -6.3% TTM and negative EBIT and EBITDA margins, reflecting ongoing operational inefficiencies.

Balance Sheet

The company's Debt-to-Equity Ratio stands at 4.38 TTM, suggesting high leverage, which could pose financial risk. Stockholders' Equity is low relative to Total Assets, resulting in an Equity Ratio of only 13.3% TTM. On a positive note, Return on Equity (ROE) improved to -55.1% TTM from -81.0% in 2024, indicating some progress in managing equity returns despite being negative.

Cash Flow

Cash flow management shows improvement, with Free Cash Flow turning positive at $23.9M TTM and a Free Cash Flow Growth Rate of 6.0% from 2024. The Operating Cash Flow to Net Income Ratio is 1.43 TTM, indicating good cash generation relative to net losses. Despite challenges, cash flow improvements highlight effective cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	334.94M	332.93M	309.39M	279.07M	219.85M	152.37M
Gross Profit	256.35M	255.34M	235.19M	209.09M	171.38M	118.24M
EBITDA	-6.95M	-6.15M	-49.31M	-125.17M	-69.73M	-31.35M
Net Income	-20.99M	-27.03M	-64.67M	-139.92M	-76.68M	-37.56M
Balance Sheet
Total Assets	286.29M	340.29M	444.06M	474.06M	555.46M	276.63M
Cash, Cash Equivalents and Short-Term Investments	120.71M	178.16M	270.13M	303.51M	399.88M	219.45M
Total Debt	166.79M	220.58M	350.31M	350.11M	348.41M	15.85M
Total Liabilities	248.21M	306.92M	418.52M	428.38M	417.17M	59.87M
Stockholders Equity	38.08M	33.37M	25.53M	45.67M	138.29M	216.76M
Cash Flow
Free Cash Flow	23.89M	22.53M	-28.42M	-94.55M	-43.60M	-28.49M
Operating Cash Flow	30.07M	26.25M	-24.24M	-89.36M	-40.30M	-26.53M
Investing Cash Flow	129.59M	105.29M	2.82M	-116.53M	-186.88M	-1.96M
Financing Cash Flow	-168.43M	-114.04M	1.24M	209.00K	305.27M	239.95M

BigCommerce Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIGC, the sentiment is Neutral. The current price of 5 is below the 20-day moving average (MA) of 5.03, below the 50-day MA of 5.09, and below the 200-day MA of 5.92, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BIGC.

BigCommerce Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUBM	69 Neutral	$565.90M	146.70	1.94%	―	3.62%	-53.21%
CNDT	67 Neutral	$427.23M	1.93	30.92%	―	-14.38%	―
Sector *	63 Neutral	$33.26B	5.86	-11.55%	1.91%	5.52%	-20.13%
CCSI	60 Neutral	$448.66M	5.31	-94.58%	―	-2.75%	-4.13%
BMBL	58 Neutral	$666.23M	―	-46.57%	―	-2.39%	-2961.26%
GRRR	56 Neutral	$452.57M	―	24.92%	―	―	―
BIGC	54 Neutral	$398.89M	―	-64.59%	―	5.33%	58.41%

BigCommerce Holdings Corporate Events

BigCommerce Holds Annual Stockholders Meeting, Elects Directors

On May 15, 2025, BigCommerce Holdings, Inc. held its Annual Meeting of Stockholders where key decisions were made. Sally Gilligan and Satish Malhorta were elected as Class II Directors for a three-year term, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, an advisory vote on the compensation of the company’s named executive officers was conducted.

The most recent analyst rating on (BIGC) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on BigCommerce Holdings stock, see the BIGC Stock Forecast page.