Shares of BigCommerce are slightly higher in late trading Monday after the Austin, Texas e-commerce software company posted better-than-expected fourth quarter financial results.
The company had originally expected to post results last week, but delayed the report because of the severe weather and power outages in Austin.
BigCommerce (ticker: BIGC), which helps merchants create an online retail presence, reported fourth quarter revenue of $43.1 million, up 39% from a year ago and ahead of the Wall Street analyst consensus estimate of $38.6 million. On a non-GAAP basis, the company lost 12 cents a share, two cents better than the Street consensus forecast for a loss of 14 cents.
The company had an adjusted Ebitda (earnings, before interest, taxes, depreciation and amortization) loss of $6.8 million. On a GAAP basis, the company lost $14.2 million, or 21 cents a share. BigCommerce said it had annualized recurring revenue of $181.2 million, up 41% from a year ago.
BigCommerce went public on Aug. 5 at $24 a share, opened for trading at $68, and by the end of day two had reached $93. A few weeks later, the stock hit an all-time high of $162.50 on an intraday basis. But it has been mostly downhill from there. In Monday’s regular session, BigCommerce shares fell 3.6%, to $68.25. The stock was up 0.4% in after hours trading.
Shares of rival Shopify (SHOP) are up 165% over the last 12 months.
BigCommerce CFO Robert Alvarez said in an interview with Barron’s that the company saw 51% growth in the quarter for enterprise accounts on annualized revenue basis. “It’s a great time to be in e-commerce,” he said.
Alvarez conceded that there could be slower growth later in 2021 as the threat of the pandemic fades and consumers buy more goods offline. But he also says there’s no question that the percentage of retail transactions taking place online will continue to grow over time—he estimates that the total grew from 10% in 2017 to more than 20% last year. He says it will eventually reach the 40% to 50% range.
Alvarez said the company remains on track to reach break-even on a free cash flow basis by the end of 2022. He also says the company continues to focus on international expansion, with fourth quarter growth of 97% in EMEA (Europe, Middle East and Africa) and 42% in APAC (Asia-Pacific).
BigCommerce sees first quarter revenue of $41.8 million to $42.3 million, above the previous Street consensus of $39.3 million, with a non-GAAP loss ranging from $7.9 million to $8.2 million.
For the full year, Big Commerce sees revenue of $189 million to $191 million, ahead of the former Street consensus of $175.6 million, with a non-GAAP operating loss ranging from $33.3 million to $34.5 million. For all of 2020, the company had revenue of $152.4 million and a non-GAAP loss of $38.7 million.
Write to Eric J. Savitz at [email protected]
