{"id":1541251,"date":"2024-08-16T08:58:37","date_gmt":"2024-08-16T12:58:37","guid":{"rendered":"https:\/\/www.practicalecommerce.com\/?p=1541251"},"modified":"2024-08-22T06:25:14","modified_gmt":"2024-08-22T10:25:14","slug":"bigcommerce-rising-q2-2024-recap","status":"publish","type":"post","link":"https:\/\/www.practicalecommerce.com\/bigcommerce-rising-q2-2024-recap","title":{"rendered":"BigCommerce Rising: Q2 2024 Recap"},"content":{"rendered":"

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

Yet core platform subscriptions account for roughly 75% of BigCommerce’s revenue. The rest comes from “partners,” mostly third-party app developers who share their proceeds.<\/p>\n

Regardless, BigCommerce is by any measure an ecommerce pioneer.<\/p>\n

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

By 2010, in our next profile<\/a>, the hosted cart was up and running. The founders called it BigCommerce.<\/p>\n

In 2013, BigCommerce caught the attention<\/a> 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<\/a>.<\/p>\n

In August 2020, BigCommerce went public, raising $216 million on the Nasdaq exchange under the “BIGC” symbol.<\/p>\n

Q2 2024 Financials<\/h3>\n

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<\/span>.\u00a0<\/em><\/p>\n

The company has posted net losses every year since the public offering. Its 2023 revenue, $309 million, was a fraction of Shopify’s $7 billion<\/em>.<\/p>\n

But 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.<\/p>\n

Notably, the company is cash flow positive<\/em>. 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.<\/p>\n

Investors have noticed. Multiple analysts now project net profits<\/em> for all of 2024 and a target share price of nearly $10, a 67% increase.<\/p>\n