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1. Company Snapshot

1.a. Company Description

BigCommerce Holdings, Inc.operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally.The company's platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations.


As of December 31, 2021, it served approximately 60,000 online stores across industries.BigCommerce Holdings, Inc.was founded in 2009 and is headquartered in Austin, Texas.

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1.b. Last Insights on BIGC

BigCommerce Holdings' recent performance was negatively impacted by slower-than-expected sales growth, despite beating earnings and revenue estimates in Q4 2024. The company's total revenue grew 8% year-over-year, below the 10% growth rate in the previous quarter. Additionally, its total ARR (annual recurring revenue) growth slowed to 4% year-over-year, down from 7% in the previous quarter. Furthermore, the company's operating cash flow for the full year was $26.3 million, a decline from the previous year. These metrics suggest that BigCommerce's growth momentum may be decelerating, which could be a concern for investors.

1.c. Company Highlights

2. Commerce's Q3 Earnings: A Mixed Bag with Profitable Growth

Commerce, formerly BigCommerce, reported Q3 revenue of $86 million, in line with guidance, and non-GAAP operating income of $8 million, exceeding the high end of profitability guidance. The company's EPS came out at -$0.02778, missing estimates of $0.04. Operating cash flow was approximately $11 million. For the 12 months ending September 30, 2025, total revenue was $340 million and non-GAAP operating income was just above $30 million.

Publication Date: Nov -15

📋 Highlights
  • Q3 Revenue & Profitability:: Reported $86M revenue (in line with guidance), $8M non-GAAP operating income (exceeding high end of guidance), and $11M operating cash flow.
  • 12-Month Financials:: Total revenue reached $340M, with non-GAAP operating income exceeding $30M, reflecting strong year-over-year growth.
  • Debt Reduction & Cash Flow:: Eliminated ~90% of net debt in 18 months, with operating cash flow nearly doubling to $11M compared to prior year.
  • B2B Momentum:: Notable clients like ADI Global and Big Ass Fans joined, supported by IDC’s 391% 3-year ROI validation for B2B Edition customers.
  • 2025 Guidance:: Full-year revenue projected at $340.6M–$345.6M, non-GAAP operating income of $24.7M–$29.7M, emphasizing profit margins up 413 bps.

Financial Performance

The company's financial performance was marked by a 413 basis points improvement in profit margins and a near doubling of operating cash flow versus a year ago. Commerce has also made significant progress in reducing its net debt, eliminating nearly 90% of it in the last 18 months. The company's guidance for Q4 includes revenue between $87.8 million and $92.8 million and non-GAAP operating income between $4.3 million and $9.3 million.

Business Highlights

Commerce's platform continues to power both B2C and B2B e-commerce for leading brands and manufacturers, with B2B momentum being a key highlight in Q3. The company welcomed new customers such as ADI Global, Big Ass Fans, and Pantone, and celebrated successful new launches from innovators like F&C Distributors. A study by IDC validated the platform's impact, finding that B2B Edition customers achieved a 391% 3-year ROI and 24% boost in sales productivity.

Growth Prospects

Commerce is focused on scaling profitable, sustainable growth across its core offerings, driven by AI-reshaping how customers discover, evaluate, and purchase products. The company is excited about new product rollouts, particularly Feedonomics Surface, which has been well-received, and Makeswift, which will be available on Stencil next year. Analysts estimate next year's revenue growth at 4.5%.

Valuation

With a P/S Ratio of 1.18 and an EV/EBITDA of 63.82, Commerce's valuation suggests that the market is pricing in significant growth expectations. However, the company's ROE of -52.06% and ROIC of -14.4% raise concerns about its ability to generate returns on invested capital. The company's Net Debt / EBITDA ratio of 14.74 also indicates a high level of debt.

3. NewsRoom

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BigCommerce Named as a Challenger in 2025 Gartner® Magic Quadrant™ for Digital Commerce Platforms

Nov -06

Source: globenewswire.com

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Commerce to Announce Third Quarter 2025 Financial Results on November 6, 2025

Oct -20

Source: globenewswire.com

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Commerce Introduces BigCommerce Payments Powered by PayPal

Oct -20

Source: globenewswire.com

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Commerce Earns Quality Management ISO Certification and Tests Against Responsible AI ISO Frameworks

Sep -23

Source: globenewswire.com

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Commerce to Present at Upcoming Investor Conference

Aug -08

Source: globenewswire.com

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BigCommerce: Leading Headless E-Commerce Platform With Accelerating Growth Opportunity

Aug -02

Source: seekingalpha.com

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BigCommerce Holdings, Inc. (BIGC) Q2 2025 Earnings Call Transcript

Jul -31

Source: seekingalpha.com

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Compared to Estimates, BigCommerce (BIGC) Q2 Earnings: A Look at Key Metrics

Jul -31

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.52%)

6. Segments

Subscription Solutions

Expected Growth: 8%

BigCommerce Holdings' Subscription Solutions growth is driven by increasing adoption of e-commerce platforms, rising demand for omnichannel experiences, and growing need for scalable and secure online storefronts. Additionally, the company's partnerships with leading brands and its expanding global presence contribute to its growth.

Partner and Services

Expected Growth: 10%

BigCommerce Holdings, Inc.'s Partner and Services segment growth is driven by increasing adoption of e-commerce enablement solutions, strategic partnerships with leading digital agencies and system integrators, expansion of services into new markets, and growing demand for omnichannel commerce experiences.

7. Detailed Products

Ecommerce Platform

A scalable and customizable ecommerce platform for businesses of all sizes

Website Builder

A drag-and-drop website builder for creating custom online stores

Payment Gateways

Integrated payment gateways for secure and efficient transactions

Order Management

Streamlined order management system for efficient fulfillment and shipping

Product Information Management

Centralized product information management for accurate and up-to-date product data

Customer Management

Comprehensive customer management system for personalized marketing and loyalty programs

Reporting and Analytics

Advanced reporting and analytics for data-driven business decisions

App Marketplace

A marketplace of integrated apps for extending ecommerce functionality

Headless Commerce

API-first headless commerce for custom, omnichannel experiences

8. BigCommerce Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

BigCommerce Holdings, Inc. operates in the e-commerce platform market, where substitutes are limited. However, the company faces competition from other e-commerce platforms, such as Shopify and Magento, which could be considered substitutes.

Bargaining Power Of Customers

BigCommerce Holdings, Inc. has a large customer base, which gives it bargaining power over its customers. However, the company's customers are mostly small and medium-sized businesses, which have limited bargaining power.

Bargaining Power Of Suppliers

BigCommerce Holdings, Inc. has a diversified supplier base, which reduces the bargaining power of its suppliers. The company's suppliers are mostly technology and infrastructure providers, which are readily available in the market.

Threat Of New Entrants

The e-commerce platform market is highly competitive, and new entrants can easily enter the market. BigCommerce Holdings, Inc. faces a high threat of new entrants, which could potentially disrupt its business.

Intensity Of Rivalry

The e-commerce platform market is highly competitive, with many players competing for market share. BigCommerce Holdings, Inc. faces intense rivalry from its competitors, such as Shopify and Magento, which could potentially erode its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.07%
Debt Cost 3.95%
Equity Weight 6.93%
Equity Cost 8.17%
WACC 4.24%
Leverage 1342.20%

11. Quality Control: BigCommerce Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
eGain

A-Score: 4.8/10

Value: 2.5

Growth: 5.4

Quality: 8.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Enfusion

A-Score: 4.5/10

Value: 0.7

Growth: 7.0

Quality: 5.7

Yield: 0.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
BigCommerce

A-Score: 3.9/10

Value: 4.7

Growth: 7.2

Quality: 2.5

Yield: 0.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Compass

A-Score: 3.8/10

Value: 4.4

Growth: 5.7

Quality: 2.8

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
EZFill

A-Score: 3.7/10

Value: 8.4

Growth: 4.3

Quality: 4.9

Yield: 0.0

Momentum: 4.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Asure Software

A-Score: 3.5/10

Value: 4.8

Growth: 4.1

Quality: 4.5

Yield: 0.0

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.78$

Current Price

4.78$

Potential

-0.00%

Expected Cash-Flows