BigCommerce’s first quarter results aligned with Wall Street’s revenue expectations, driven by ongoing operational transformation and a sharpened focus on both B2B and B2C customer segments. CEO Travis Hess highlighted a 530-basis-point improvement in non-GAAP operating margin, attributing the gains to completed salesforce expansion, targeted cost controls, and initial benefits from a revised go-to-market strategy. Management noted, “We see encouraging signs of progress behind our go-to-market transformation efforts,” referencing increased sales pipeline activity, especially in B2B. The leadership team remains clear-eyed about the pace of change, acknowledging that current growth rates do not yet reflect the business’s full potential.
Is now the time to buy BIGC? Find out in our full research report (it’s free).
BigCommerce (BIGC) Q1 CY2025 Highlights:
- Revenue: $82.37 million vs analyst estimates of $82.49 million (2.5% year-on-year growth, in line)
- Adjusted EPS: $0.07 vs analyst estimates of $0.05 (32.5% beat)
- Adjusted Operating Income: $7.59 million vs analyst estimates of $4.49 million (9.2% margin, 69% beat)
- The company dropped its revenue guidance for the full year to $343.1 million at the midpoint from $346.1 million, a 0.9% decrease
- Operating Margin: -2.9%, up from -10.2% in the same quarter last year
- Annual Recurring Revenue: $350.8 million at quarter end, up 3.1% year on year
- Billings: $84.44 million at quarter end, up 1.8% year on year
- Market Capitalization: $393.3 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions BigCommerce’s Q1 Earnings Call
- Raimo Lenschow (Barclays) asked for detail on pipeline progress and macro visibility; CEO Travis Hess cited increased B2B pipeline and completed leadership onboarding, while CFO Daniel Lentz emphasized cautious investment and a widened guidance range due to uncertainty.
- Ken Wong (Oppenheimer) inquired about sales close rates and conversion; Hess noted larger B2C deals with longer cycles, but said pipeline quality and conversion trends remain as expected, with macro risks being closely watched.
- Koji Ikeda (Bank of America) questioned payments strategy and potential pricing downgrades; Hess clarified the complementary nature of upcoming BigCommerce Payments and existing partners, and explained the company’s revenue model moderates short-term pricing swings.
- David Hynes (Canaccord) raised concerns about the ongoing decline in enterprise account count; Lentz acknowledged the trend but pointed to six consecutive quarters of rising average revenue per enterprise account, stressing the focus on dollar growth and the expectation for account growth to contribute in the future.
- Parker Lane (Stifel) sought clarification on margin sustainability; Lentz said gross margin improvements are expected to persist, while operating leverage will come from disciplined expense management and top-line acceleration.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the adoption and monetization of AI-powered product features, (2) progress in rolling out bundled solutions and self-serve offerings like Feedonomics and Makeswift, and (3) stabilization or growth in enterprise account counts. Execution on the BigCommerce Payments launch and resilience to macroeconomic headwinds will also be critical markers of success.
BigCommerce currently trades at $4.92, down from $5.21 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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