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BigCommerce Holdings (BIGC)
NASDAQ:BIGC
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BigCommerce Holdings (BIGC) AI Stock Analysis

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BIGC

BigCommerce Holdings

(NASDAQ:BIGC)

Rating:60Neutral
Price Target:
$5.50
▲(9.13%Upside)
BigCommerce's stock score reflects positive financial performance in revenue and cash flow improvements, and promising strategic initiatives highlighted in the earnings call. However, valuation concerns and technical analysis indicate potential risks, while macroeconomic uncertainties pose ongoing challenges.
Positive Factors
Product Offering
BigCommerce is actively working on its own payments offering, which could drive higher GMV monetization.
Sales Growth
Sales capacity has doubled over the past three months, indicating a stronger sales force.
Strategic Initiatives
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.
Negative Factors
Competitive Pressure
Despite the strategic changes, growth has been pressured and there is strong competition from Shopify, which continues to push up-market.
Customer Retention
The Enterprise customer count also decreased by 59 q/q, the third-straight quarter of net customer losses.
Growth Performance
Fundamentals continued to deteriorate through 2024, with a deceleration in ARR growth and a QoQ decline in Enterprise Accounts.

BigCommerce Holdings (BIGC) vs. SPDR S&P 500 ETF (SPY)

BigCommerce Holdings Business Overview & Revenue Model

Company DescriptionBigCommerce Holdings (BIGC) is a leading Software-as-a-Service (SaaS) provider specializing in e-commerce solutions. The company offers a comprehensive platform that enables businesses of all sizes to create and operate their own online stores. With its headquarters in Austin, Texas, BigCommerce serves a diverse clientele ranging from small startups to large enterprises, providing features such as customizable templates, payment integration, and advanced security measures to support seamless online retail experiences.
How the Company Makes MoneyBigCommerce 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 Key Performance Indicators (KPIs)

Any
Any
Number of Enterprise Accounts
Number of Enterprise Accounts
Tracks the count of enterprise clients, reflecting BigCommerce's success in attracting and retaining large businesses, which can drive significant revenue growth.
Chart InsightsBigCommerce's enterprise accounts have declined for five consecutive quarters, reflecting challenges in maintaining growth amid macroeconomic uncertainties and tariff risks. Despite this, the company is focusing on operational discipline and strategic investments in AI and B2B capabilities to drive future growth. The recent earnings call highlighted improvements in operating income and gross margins, suggesting resilience in core operations. However, the decline in enterprise accounts remains a concern, potentially impacting revenue growth if not addressed effectively.
Data provided by:Main Street Data

BigCommerce Holdings Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -3.08%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
BigCommerce demonstrated solid financial performance in Q1 2025 with improvements in operating income, revenue growth, and gross margin. Significant investments in AI and B2B capabilities, along with strategic leadership hires, position the company for future growth. However, concerns remain due to macroeconomic uncertainties, tariff risks, and a decline in enterprise accounts.
Q1-2025 Updates
Positive Updates
Improvement in Non-GAAP Operating Income
BigCommerce delivered a non-GAAP operating income of $7.6 million in Q1 2025, reflecting a 530-basis point margin improvement year-over-year.
Revenue and ARR Growth
Annual revenue run-rate reached $351 million, with a year-over-year improvement of 3%. Revenue for Q1 was $82.4 million, also reflecting a 3% year-over-year growth.
Significant Operating Cash Flow Improvement
Operating cash flow improved by nearly $4 million year-over-year, reaching approximately $400,000 in Q1 2025.
Enhancements in B2B Offerings
New capabilities tailored to B2B needs were released, including multi-company hierarchy support and an upgraded configure-price-quote tool, reducing steps by up to 75%.
Leadership Team Expansion
Vipul Shah joined as the new Chief Product Officer in April, bringing experience from Google, JPMorgan, and PayPal, further strengthening BigCommerce's focus on product and innovation.
Gross Margin Improvement
Non-GAAP gross margin strengthened to 80.3%, up 240 basis points year-over-year.
Reduction in Net Debt
BigCommerce reduced its net debt position to $32.2 million, a 59% decrease year-over-year.
Negative Updates
Macro Uncertainty and Tariff Risks
BigCommerce is closely monitoring the potential impacts of increased tariffs and macroeconomic uncertainty, particularly in partner and services revenue, which makes up about 25% of total revenues.
Sequential Decline in Enterprise Accounts
The number of enterprise accounts has seen a slight sequential decline for five consecutive quarters.
Potential Impact of Recessionary Pressures
Increased macroeconomic uncertainty could impact pipeline generation and conversion rates, posing a downside risk to growth expectations.
Company Guidance
During the BigCommerce first quarter 2025 earnings call, the company provided guidance for both the second quarter and full-year 2025, reflecting a dynamic economic environment. For Q2, revenue is expected to be between $82.5 million and $83.5 million, with a non-GAAP operating income projected between $2.7 million and $3.7 million. For the full year, BigCommerce widened its revenue guidance range to $335.1 million to $351.1 million, and anticipates a non-GAAP operating income between $16 million and $28 million. This adjustment accounts for both underlying business strength and potential macroeconomic uncertainties. The company emphasizes operational discipline and plans to invest in high-ROI areas such as sales capacity expansion, AI innovations, and core product initiatives to drive growth.

BigCommerce Holdings Financial Statement Overview

Summary
BigCommerce Holdings shows solid revenue growth and cash flow improvements. However, the negative net profit margin and high leverage remain concerns. Continued focus on operational efficiency and managing financial leverage are crucial for profitability.
Income Statement
65
Positive
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
55
Neutral
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
72
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue332.93M309.39M279.07M219.85M152.37M
Gross Profit255.34M235.19M209.09M171.38M118.24M
EBITDA-6.15M-49.31M-125.17M-69.73M-31.35M
Net Income-27.03M-64.67M-139.92M-76.68M-37.56M
Balance Sheet
Total Assets340.29M444.06M474.06M555.46M276.63M
Cash, Cash Equivalents and Short-Term Investments178.16M270.13M303.51M399.88M219.45M
Total Debt220.58M350.31M350.11M348.41M15.85M
Total Liabilities306.92M418.52M428.38M417.17M59.87M
Stockholders Equity33.37M25.53M45.67M138.29M216.76M
Cash Flow
Free Cash Flow22.53M-28.42M-94.55M-43.60M-28.49M
Operating Cash Flow26.25M-24.24M-89.36M-40.30M-26.53M
Investing Cash Flow105.29M2.82M-116.53M-186.88M-1.96M
Financing Cash Flow-114.04M1.24M209.00K305.27M239.95M

BigCommerce Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.04
Price Trends
50DMA
5.04
Negative
100DMA
5.33
Negative
200DMA
5.85
Negative
Market Momentum
MACD
<0.01
Negative
RSI
50.26
Neutral
STOCH
76.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIGC, the sentiment is Negative. The current price of 5.04 is above the 20-day moving average (MA) of 5.03, below the 50-day MA of 5.04, and below the 200-day MA of 5.85, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 76.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIGC.

BigCommerce Holdings Risk Analysis

BigCommerce Holdings disclosed 61 risk factors in its most recent earnings report. BigCommerce Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

BigCommerce Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$1.27B10.4521.03%6.40%9.72%
70
Outperform
$1.42B206.022.81%22.75%-47.45%
69
Neutral
$1.15B75.936.26%7.71%
67
Neutral
$1.37B75.95%-6.81%85.11%
63
Neutral
$34.70B4.89-11.39%1.66%5.53%-19.00%
60
Neutral
$403.70M-64.59%5.33%58.41%
60
Neutral
$1.28B-6.49%5.15%28.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BIGC
BigCommerce Holdings
5.17
-2.95
-36.33%
PRCH
Porch Group
13.26
11.23
553.20%
YALA
Yalla Group
7.75
3.47
81.07%
SEMR
SEMrush Holdings
9.74
-5.10
-34.37%
VTEX
VTEX
6.29
-0.04
-0.63%
MLNK
MeridianLink
16.71
-7.01
-29.55%

BigCommerce Holdings Corporate Events

Executive/Board Changes
BigCommerce Holdings Appoints Anil Kamath to Board
Neutral
Jul 1, 2025

On June 27, 2025, Lawrence Bohn announced his retirement from the Board of Directors of BigCommerce Holdings, effective July 1, 2025. His departure was not due to any disagreements with the company. Subsequently, Anil Kamath was appointed as a Class I director effective July 1, 2025, following a recommendation from the Nominations and Corporate Governance Committee. Kamath, who has a strong background in technology and leadership, previously held significant roles at Adobe and founded two companies, Efficient Frontier and eBoodle. His expertise in data science, machine learning, and artificial intelligence is expected to enhance the company’s strategic direction.

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.

Executive/Board ChangesShareholder Meetings
BigCommerce Holds Annual Stockholders Meeting, Elects Directors
Neutral
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025