BigCommerce Reports Q4 Earnings: Strong Beat on EPS, Slight Miss on Revenue Guidance

Key Metrics:

* Revenue: $87.03 million (in line with estimates)
* Adjusted EPS: $0.11 (65.7% beat)
* Adjusted Operating Income: $10.09 million (83.1% beat)
* Revenue guidance for FY2025: $346.1 million (1.1% miss)
* Annual Recurring Revenue (ARR): $349.6 million (3.9% YoY growth)

Company Overview:

BigCommerce (NASDAQ: BIGC) provides e-commerce software that helps businesses easily build online stores. Its market capitalization stands at $524.4 million.

Sales Growth:

BigCommerce's sales have grown at a 14.8% annual rate over the past three years. This quarter, revenue increased by 3.4% YoY to $87.03 million. However, management has guided for a 2.3% YoY increase in sales next quarter.

Annual Recurring Revenue:

BigCommerce's ARR averaged a 5.1% YoY increase over the last four quarters. This metric's growth has slowed compared to total sales, indicating that the recurring portions of the business are growing at a slower pace.

Customer Acquisition Efficiency:

BigCommerce has a customer acquisition cost (CAC) payback period of 40.7 months, indicating its ability to quickly recoup its sales and marketing investments.

Analyst Outlook:

Sell-side analysts expect revenue growth of 5.1% over the next 12 months, a slowdown from previous years. This suggests that BigCommerce's products and services may face some demand headwinds.

Investment Considerations:

The stock traded up 1.5% to $6.80 after the earnings report. Given the mixed results and the potential for decelerating growth, investors may want to consider the company's long-term business quality and valuation before making an investment decision.

Disclaimer: This report is for informational purposes only and does not constitute investment advice.