Shares of e-commerce software provider BigCommerce are surging Friday. It just recorded seven straight quarter of 30%+ revenue growth.
Dreamstime
BigCommerce Holdings stock is surging Friday after the e-commerce software provider posted better-than-expected third-quarter financial performance.
For the quarter, BigCommerce (ticker: BIGC) reported revenue of $59.3 million, up 49% from a year ago, and well above the Street consensus forecast at $54.8 million. The company lost 6 cents a share on a non-GAAP basis in the quarter, narrower than the Street consensus at a loss of 14 cents.
BigCommerce said it expects fourth-quarter revenue to range from $61.3 million to $61.7 billion, ahead of the old Street consensus view for $60.9 million. For the full year, the company now sees revenue in the range from $216.2 million to $216.6 million, up from a previous target range from $210.7 million to $211.7 million.
“Q3 was a record quarter on many dimensions for BigCommerce, including our 49% year-over-year revenue growth rate, which was our highest as a public company,” BigCommerce CEO Brett Bellm said in a statement.
The company said total annual revenue run-rate (or ARR) as of Sept. 30 was $253.5 million, up 52%. Subscription revenue in the quarter was $42.1 million, up 59%. The number of accounts with more than $2,000 in annual account value was 12,378, up 27% from a year ago.
In Friday trading, BigCommerce stock has surged 21.4% to $55.67. BigCommerce went public in August 2020 at $24 a share.
In an interview with Barron’s, BigCommerce Chief Financial Officer Robert Alvarez noted that the company has now had seven straight quarters with revenue growth of 30% or better. He says the company is seeing particular strength in enterprise accounts—the company serves both consumer facing sellers and business-to-business customers. Alvarez said that enterprise customers now account for about two-thirds of ARR. He notes that the company is also making progress in international markets, with revenue in the latest quarter up 68% in EMEA (Europe, Middle East and Africa) and 55% in the Asian-Pacific region.
Asked about the impact on the company’s business from retailer stockouts, shipping issues, and other supply-chain disruptions, he says that the impact has been minimal on its business to date, and that the company is “not seeing much from merchants on that front,” which is a contrast to both online retailers such as Amazon.com (AMZN) and other e-commerce software players such as Shopify (SHOP).
Write to Eric J. Savitz at [email protected]
