BigCommerce Holdings, Inc. (BIGC) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The financial performance shows slight improvements in margins and revenue, but the macroeconomic uncertainty and lack of a shareholder return plan weigh negatively. The Q&A reveals cautious optimism about the pipeline and investment flexibility, but management's unclear responses on tariff impacts and economic factors suggest caution. Overall, these mixed signals and the lack of strong catalysts suggest a neutral stock price movement.
Key Financial Performance
Non-GAAP Operating Income $7.6 million, a 530-basis point margin improvement year-over-year.
Annual Revenue Run-Rate (ARR) $351 million, a year-over-year improvement of 3%.
Revenue $82.4 million, growing 3% year-over-year.
Operating Cash Flow Approximately $400,000, an improvement of nearly $4 million year-over-year.
Average Revenue per Enterprise Account Just over $45,000, a 9% increase year-over-year.
Non-GAAP Gross Margin 80.3%, up 240 basis points year-over-year.
Non-GAAP Operating Income Margin 9.2%, up 530 basis points from Q1 2024, and 1,820 basis points from Q1 2023.
Cash, Cash Equivalents, and Marketable Securities $121.9 million.
Net Debt Position $32.2 million, a 59% decrease year-over-year.
Quarterly Operating Cash Flow Approximately $400,000, up $3.8 million from Q1 2024, and up $21.2 million from Q1 2023.
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Operating Highlights
Core Products: BigCommerce offers three core products: its flagship commerce platform, an AI-based product data feed management platform (Feedonomics), and a brand commerce site builder (Makeswift).
New Features: Released enhancements include multi-company hierarchy support and an upgraded configure-price-quote tool, improving efficiency for large enterprises.
New Product Initiatives: Plans to launch a self-serve version of Makeswift and a BigCommerce Payments solution by early 2026.
Market Positioning: BigCommerce serves 5,825 enterprise accounts and tens of thousands of small business accounts, with a focus on B2B and B2C markets.
Customer Expansion: Welcomed industry leaders like Superfeet and Van De Velde Packaging, and launched new brands such as EuroOptic and Kittery Trading Post.
Operational Efficiency: Achieved non-GAAP operating income of $7.6 million, with a 530-basis point margin improvement year-over-year.
Sales Capacity: Doubled quota-carrying sales capacity after a 10% headcount reduction in Q4.
Strategic Priorities: Focus on accelerating revenue growth profitably, disciplined operational execution, and go-to-market transformation.
Leadership Changes: New Chief Product Officer Vipul Shah and Senior VP of Engineering Marcus Groff appointed to strengthen product and innovation focus.
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Risk or Challenges
Macroeconomic Uncertainty: Current macroeconomic uncertainty adds complexity to the business environment, which could impact growth expectations.
Global Trade and Tariffs: Shifting trade policies and increased tariffs may influence customers’ operating environments, particularly for international sellers.
Partner and Services Revenue (PSR) Exposure: Approximately 25% of total revenues are driven by revenue share on transaction volumes from technology partners, which may be affected by macroeconomic changes.
Pipeline Generation and Conversion Rates: Potential effects of macroeconomic uncertainty may impact pipeline generation and conversion rates over time.
Revenue Growth Guidance: The current environment increases the potential range of revenue growth results, with both upside and downside risks.
Operational Discipline: The company is managing spending carefully to account for macroeconomic risks while maintaining the option to reinvest in the business.
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Guidance & Outlook
Strategic Priorities for 2025: 1. Accelerating revenue growth profitably. 2. Disciplined and focused operational execution. 3. Execution of go-to-market transformation plan.
Key Initiatives: 1. Cross-selling Feedonomics to existing customers. 2. Launching self-serve version of Makeswift. 3. Partnering with Noibu for platform performance monitoring. 4. BigCommerce Payments offering expected in early 2026.
Leadership Changes: New Chief Product Officer Vipul Shah and Senior VP of Engineering Marcus Groff to enhance product and engineering capabilities.
Investment Focus: Investing in B2B and B2C offerings, particularly in underserved categories.
AI Integration: Leveraging AI for sales efficiency, customer experience, and product data optimization.
Q2 2025 Revenue Guidance: Expected revenue between $82.5 million and $83.5 million.
Full Year 2025 Revenue Guidance: Widened range to $335.1 million to $351.1 million.
Full Year 2025 Non-GAAP Operating Income Guidance: Expected between $16 million and $28 million.
Current Economic Outlook: Expecting a challenging year with potential upside and downside impacts on revenue growth due to macroeconomic uncertainty.
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Shareholder Return Plan
Shareholder Return Plan: BigCommerce has not announced any share buyback program or dividend program during this earnings call.
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Key Q&A
Q:Can you discuss the encouraging signs mentioned in terms of the pipeline side?
A:The most notable sign is the size of the pipeline, which has shown sequential growth quarter-over-quarter and year-over-year, particularly within B2B. The seating of the larger leadership team is also a positive internal sign.
Q:How flexible are you with investment levels in terms of cost as macro changes?
A:We want to have spending available to capitalize on opportunities, particularly in AI, while being cautious to protect margins given market uncertainty.
Q:Any color on how customer conversations and close rates trended from January through May?
A:There’s nothing worth calling out; however, we are seeing larger deals in the B2C side, which typically have slower conversion timeframes.
Q:What needs to happen to reach the upper end of your guidance range?
A:We need to avoid recessionary shifts or inflationary pressures and continue to build pipeline and see good returns on marketing spend.
Q:How do you plan to treat potential tier downgrades this year?
A:We have a pricing model based on order volume, which moderates the impact of sudden changes in order volumes, but sustained recessionary pressures could lead to downgrade pressure.
Q:What is the profile and experience of the new sales reps added?
A:The profile varies, but we are focusing on experienced reps and also bringing in younger talent, with a typical onboarding period of about six months.
Q:What is the progress on your freemium offerings with Makeswift and Feedonomics?
A:We are in beta with self-serve Feedonomics and expect to launch it soon, while Makeswift is targeted for late this year or early next year.
Q:What would it take to get to the low end of your guidance?
A:We would need to see increases in churn rates and sustained downturns in the macro economy.
Q:Are you seeing any changes in customer behavior regarding net new customers?
A:It's too early to tell, but we are seeing trends in B2B focused areas where there is a cost savings thesis driving urgency.
Q:What are the areas of potential investment you are considering?
A:The largest area of opportunity is AI, particularly in optimizing product and catalog data for AI and LLMs.
Q:Review of Unclear Management Responses
A:Management appeared to avoid giving a direct answer when discussing the visibility into customer supply chains and how tariffs might impact their business. Their response lacked clarity regarding the specific effects of macroeconomic factors on their operations and customer behavior.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI area
AI change
AI enhancement
AI improvement
ARR improvement
Amazon Salesforce
America Hynes
BB need
BB opportunity
BC BB
BC focus
Baer Morgan
BigCommerce Payments
BigCommerce brand
BigCommerce platform
Feedonomics
Investor Day
OpenAI
SaaS
Vice President
Vipul
bundle
configure price
core product
engineering
fashion
launch
legacy platform
market transformation
offering
price quote
retailer
step
support
track
transformation plan
value
workflow
BIGC Transcript
BigCommerce Holdings, Inc. (BIGC) Q2 2025 Earnings Call Transcript
Unknown7-31
The earnings call summary presents a mixed picture. While there are positive aspects like the expectation of transformative partnerships and growth in ARPA, there are also concerns such as the impact of AI on search traffic and vague management responses. The widened revenue guidance range and challenging economic outlook further contribute to uncertainty. Without a market cap, it's difficult to gauge the exact impact, but overall, the sentiment is neutral due to the balance of positive and negative elements.
BigCommerce Holdings, Inc. (NASDAQ:BIGC) Q1 2025 Earnings Call Transcript
Unknown5-10
The earnings call presents a mixed picture. Financial metrics show positive trends, such as improved margins and revenue growth. However, widened revenue guidance and macroeconomic uncertainties suggest caution. The Q&A indicates a positive pipeline outlook, but management's vague responses on macroeconomic impacts and lack of shareholder returns dampen sentiment. The absence of a share buyback or dividend program, coupled with macro risks, balances the optimistic product and leadership updates, leading to a neutral prediction.
BigCommerce Holdings, Inc. (BIGC) Q1 2025 Earnings Call Transcript
Unknown5-8
The financial performance shows slight improvements in margins and revenue, but the macroeconomic uncertainty and lack of a shareholder return plan weigh negatively. The Q&A reveals cautious optimism about the pipeline and investment flexibility, but management's unclear responses on tariff impacts and economic factors suggest caution. Overall, these mixed signals and the lack of strong catalysts suggest a neutral stock price movement.
BigCommerce Holdings, Inc. (BIGC) Q3 2024 Earnings Call Transcript
Unknown11-7
The earnings call summary shows mixed signals: moderate revenue growth, cost structure improvements, and strong enterprise ARPU growth are positive. However, the decline in enterprise accounts and unclear guidance on the Rule of 40 profile raise concerns. The Q&A reveals cautious optimism with some uncertainties, particularly regarding tariffs and competitive pressures. Given the balance of positive and negative factors, the stock price is likely to remain stable in the short term.
BIGC Slides
BIGC Report
Frequently Asked Questions
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Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
