Why Ecommerce Company BigCommerce's Shares Are Sliding Today

BigCommerce Holdings, Inc. BIGC reported Q3 revenues of $78.045 million, marginally missing the street view of $78.150 million. Quarterly revenue rose 8% Y/Y.

Non-GAAP loss per share was ($0.01), beating the analyst consensus of ($0.03) loss.

Subscription revenue was $58.7 million, up 10% Y/Y. Number of enterprise accounts was 5,951, up 7% Y/Y.

Non-GAAP gross margin was 77%, unchanged from the third quarter of 2022.

Revenue in the Americas grew by 7%, EMEA increased by 23%, and revenue in APAC grew by 2% compared to the third quarter of 2022.

Operating loss was $(22.2) million, compared to $(30.56) million in the year-ago period. The company reported adjusted EBITDA of $(102) thousand in Q3, compared to $(10.5) million in the year-ago period.

BigCommerce exited the quarter with cash and equivalents worth $266.5 million.

On September 30, 2023, the company committed to a plan to reduce its current workforce by approximately 7%. The company notified the affected employees on November 8, 2023, and are being provided with severance arrangements. The company said the decision was based on cost-reduction initiatives intended to better position it for continued profitable growth heading into 2024.

Outlook: The company expects Q4 total revenue of $79.8 million-$83.8 million, implying a year-over-year growth rate of 10% to 16%. The analyst consensus stands at $81.66 million.

For FY23, the company sees total revenue of $305.0 million-$309.0 million, translating into a year-over-year growth rate of 9%-11%, versus the $307.01 million estimate (prior view: $304.0 million-$310.0 million). 

The company sees FY23 Non-GAAP operating loss of $(6.9) million-$(9.9) million (prior view: $(10.2) million-$(15.2) million).

Price Action: BIGC shares are trading lower by 13.35% to $8.70 on the last check Wednesday.