Ecommerce platform BigCommerce recently reported results of a strong third quarter driven by 82% growth in its partner and services revenue (PSR). It went public in August this year on the NASDAQ under the ticker BIGC.
BigCommerce offers an open SaaS platform that simplifies the creation of branded e-commerce stores. It caters to about 60,000 stores and recently added leading brands such as ChapStick, 5-Hour Energy, Nikon Canada, Little League International, and Chivas to its client list.
Total revenue in the third quarter grew 41% to $39.7 million. GAAP net loss was ($10.9) million or (27%) of total revenue, compared to ($10.7) million or (38%) of total revenue in the third quarter of 2019. Non-GAAP net loss per share was ($0.16). Analysts had expected a loss of ($0.29) per share on revenue of $36.3 million.
BigCommerce generates revenue from two sources: subscription solutions revenue and partner and services revenue. Subscription solutions revenue increased 26% to $26.5 million. Partner and services revenue (PSR) grew a whopping 82% to $13.2 million and accounted for 33% of its Q3 revenue. The increase in PSR was primarily a result of increased e-commerce activity across the platform driven in part by the COVID-19 pandemic related changes in consumer behavior, and improved monetization of partner revenue share.
Among other business metrics, ARR from Enterprise accounts was up 48% to $89.8 million. Number of accounts greater than $2,000 in annual contract value (ACV) was up 10% to 9,777. Average revenue per account (ARPA) of accounts greater than $2,000 in ACV was up 31% to $13,792.
For the fourth quarter of 2020, BigCommerce expects total revenue between $38.3 million and $38.7 million and non-GAAP operating loss between ($10.0) million and ($9.7) million. For the full year 2020, it expects total revenue between $147.5 million and $147.9 million and non-GAAP operating loss between ($29.9) million and ($29.6) million. For the full year 2019, its total revenue had increased 22% to $112.1 million.
BigCommerce’s New Offerings and Partnerships
BigCommerce recently launched the availability of Channel Manager, a platform feature that allows merchants to seamlessly discover and connect new sales channels and manage their omnichannel operations. It added advertising partners Tinuiti and Teikametrics to support omnichannel sales efforts.
Partnerships are a cornerstone of BigCommerce’s platform strategy. BigCommerce has one of the broadest ecosystems of integrated technology solutions in the e-commerce industry. It strategically partners with, rather than compete against, the leading providers in adjacent categories such as payments, shipping, POS, CMS, CRM, and ERP. Its partners currently offer more than 600 pre-built applications and integrations spanning major categories relevant to ecommerce. Last year, its CPO Jimmy Duvall disclosed in my Thought Leaders interview that it has over 300 partners and thousands of developers developing on its ecosystem.
During the third quarter, BigCommerce added multiple key strategic partnerships to expand its technology ecosystem. In cross-channel, the Company signed new partnerships with CED Commerce, Wish, SureDone, Feedonomics, and Deliverr. It also expanded its accessibility services by partnering with Essential Accessibility for ease of shopping.
It also launched international marketing sites in France, Italy, and the Netherlands. It expanded its partnership with PayPal by integrating with iZettle, the top payment gateway in the Netherlands, in order to further support international merchants.
BigCommerce offers free, direct integrations with leading social networks such as Facebook and Instagram, search engines such as Google, online marketplaces such as Amazon and eBay, and POS platforms such as Square, Clover (a Fiserv company), and Vend. It also integrates seamlessly with leading CMSs, digital experience platforms, design frameworks, and custom front ends.
Prior to going public, BigCommerce had bootstrapped initially and then raised funding of $224.2 million from investors including American Express, FLOODGATE, General Catalyst Partners, GGV Capital, Revolution LLC, SoftBank Capital, and Telstra Ventures.
It went public in August at a list price of $24 and raised $216 million. Its stock is currently trading at $66.79 with a market cap of $4.2 billion. It hit a high of $162.5 in August.
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