BigCommerce Holdings, a leading e-commerce software provider, exceeded expectations with its fourth-quarter results. However, investors may be concerned as the company’s guidance for both the first quarter and full year of 2024 fell short of expectations.
Q4 Results Overview
In the December quarter, BigCommerce reported revenue of $84.1 million, marking a 16% increase from the previous year. This figure surpassed the Street consensus of $81.5 million provided by FactSet. The company also impressed with adjusted earnings of 10 cents per share, doubling the Street consensus of 5 cents.
Adjusted Ebitda stood at $6.5 million, surpassing the consensus of $4.1 million and showcasing a significant improvement from the $8.6 million loss reported a year earlier.
These results were in line with the late January preannouncement, where BigCommerce had indicated that both revenue and non-GAAP operating income would surpass their initial guidance.
Forecast for Q1 and 2024
Looking ahead, BigCommerce anticipates revenue for the first quarter to range between $76 million and $78 million, reflecting a growth rate of 6% to 8%. This projection falls below the consensus estimate of $81.5 million. Additionally, the company expects non-GAAP operating income for the quarter to be between $1 million and $2 million, below the consensus of $2.8 million.
For the full year of 2024, BigCommerce is targeting revenue between $327.1 million and $335.1 million, representing a growth rate of 6% to 8%. The projected non-GAAP operating income is in the range of $8.5 million to $12 million, below the Street’s expectations of $336.3 million in revenue and $15.1 million in operating income.
Market Performance and CEO Insights
Despite the positive quarterly results, BigCommerce shares have faced challenges, declining 15% year-to-date and 23% over the past 12 months. CEO Brent Belim expressed satisfaction with the company’s performance in an interview with ‘s, highlighting the achievement of adjusted Ebitda profitability in the December quarter. He emphasized BigCommerce’s current focus on achieving “efficient revenue growth.”
