Third Quarter Total Revenue of $59.3 Million, an Increase of 49% Versus Prior Year
Total ARR of $253.5 Million, an Increase of 52% Versus Prior Year

BigCommerce Holdings, Inc., a leading Open SaaS ecommerce platform for fast-growing and established brands,  announced financial results for its third quarter ended September 30, 2021.

“Q3 was a record quarter on many dimensions for BigCommerce, including our 49% year-over-year revenue growth rate, which was our highest as a public company. This rapid growth reflects the success of our Open SaaS platform in serving ever-larger enterprise customers, B2B and headless use cases and new European markets,” said Brent Bellm, chief executive officer at BigCommerce. “Our financial results also incorporate the acquisition of Feedonomics, which provides BigCommerce merchants with market-leading capabilities in omnichannel advertising and selling across 100+ global marketplaces, search engines, social networks, and ad platforms.”

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Third Quarter Financial Highlights:

• Total revenue was $59.3 million, up 49% compared to the third quarter of 2020.
• Total annual revenue run-rate (ARR) as of September 30, 2021 was $253.5 million, up 52% compared to September 30, 2020.
• Subscription revenue was $42.1 million, up 59% compared to the third quarter of 2020.
• ARR from accounts with at least one enterprise plan (“Enterprise Accounts”) was $159.9 million as of September 30, 2021, up 78% from September 30, 2020. On an organic basis, Enterprise ARR was up over 50% and incremental quarter on quarter Enterprise ARR grew at nearly three times the rate of just 7 quarters ago.
• ARR from Enterprise Accounts as a percent of total ARR was 63% as of September 30, 2021, compared to 54% as of September 30, 2020.
• ARR from accounts greater than $2,000 in ACV was $222.3 million as of September 30, 2021, up 65% from September 30, 2020.
• ARR from accounts greater than $2,000 in ACV as a percent of total ARR was 88%, compared to 81% as of September 30, 2020.
• GAAP gross margin was 79%, compared to 78% as of September 30, 2020. Non-GAAP gross margin was 80%, compared to 79% as of September 30, 2020.

Third Quarter Financials:

Other Key Business Metrics

• Number of accounts greater than $2,000 in ACV was 12,378, up 27% compared to the third quarter of 2020.
• Average revenue per account (ARPA) of accounts greater than $2,000 in ACV was $17,960, up 30% compared to the third quarter of 2020.
• Revenue in the US grew by 47%, compared to 59% across combined international operations compared to the third quarter of 2020.
• Revenue in EMEA grew by 68% and revenue in APAC grew by 55% compared to the third quarter of 2020.

Operating Income/(Loss)

• GAAP operating loss was ($21.3) million, compared to ($10.1) million in the third quarter of 2020.
• Non-GAAP operating loss was ($3.8) million, compared to ($7.2) million in the third quarter of 2020.

Net Income/(Loss) and Earnings Per Share

• GAAP net loss was ($21.7) million, compared to ($10.9) million in the third quarter of 2020.
• Non-GAAP net loss was ($4.2) million or (7%) of total revenue, compared to ($8.0) million or (20%) of total revenue in the third quarter of 2020.
• GAAP net loss per share was ($0.30) based on 71.4 million weighted-average shares of common stock outstanding, compared to ($0.16) based on 49.4 million weighted-average shares of common stock outstanding in the third quarter of 2020.
• Non-GAAP net loss per share was ($0.06) based on 71.4 million weighted-average shares of common stock outstanding, compared to ($0.16) based on 49.4 million weighted-average shares of common stock outstanding in the third quarter of 2020.

Adjusted EBITDA

• Adjusted EBITDA was ($3.1) million, compared to ($6.6) million in the third quarter of 2020.

Cash

• Cash, cash equivalents, restricted cash, and marketable securities totaled $410 million as of September 30, 2021.
• For the nine months ended September 30, 2021, net cash used in operating activities was ($31.5) million, compared to ($23.2) million for the same period in 2020.
• Free cash flow was ($33.8) million, compared to ($24.6) million for the same period in 2020.

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Business Highlights:

• Corporate Highlights: In the third quarter, the Company announced the acquisition of data feed management platform Feedonomics, which is used by nearly 30% of the top 1,000 internet retailers. The Company extended its European presence beyond the U.K. by expanding into France, Italy and the Netherlands to work directly with local merchants and partners as the growth of ecommerce in the Eurozone continues to accelerate. The Company’s disruptive Open SaaS platform was recognized as ‘Challenger’ in the 2021 Gartner ® Magic Quadrant ™ for Digital Commerce Platforms. Additionally, the Company scored 16 total medals in the 2021 Paradigm B2B Combine Midmarket and Enterprise Editions surpassing last year’s analyst evaluation and further cementing B2B ecommerce market traction.
• Product Highlights: Our efforts and strategy remain focused on providing the most flexible Open SaaS ecommerce platform that empowers merchants of all sizes to sell more. The Company released Multi-Storefront to select merchants and partners, and expect this key product enhancement to be fully available to all merchants in early 2022. Additionally, the Company announced an exciting program with TikTok to give matching advertising credits to qualifying merchants, encouraging them to test and explore TikTok For Business. The Company also announced Ads and Listings on Google native app enabling merchants to connect their stores to the Google Merchant Center and add products for free.
• Merchant Highlights: The Company added leading brands across numerous categories, including GoreWear, the producer of innovative functional cycling and running performance apparel; UK-based luxury shoe company Grenson Limited; Royal Swinkels Family Brewers, a Dutch independent family brewer of beer since 1680; Blackberry Farm, a hospitality hotel and resort situated on 4,200 acres in the Great Smoky Mountains of Tennessee; EyePromise, a scientifically-supported eye vitamin company; and Australian merchant Adelaide Tools, who specializes in the sales and service of name-brand power tools such as Makita, Hitachi, DeWalt, Milwaukee and more since 1949.
• Partner Highlights: Subsequent to Q3, the Company announced a strategic partnership with the CMA CGM Group, a world leader in shipping and logistics, and subsidiary NewOxatis, a leading publisher of ecommerce solutions, to enable thousands of NewOxatis’ merchants to build world-class digital storefronts powered by BigCommerce. The Company also announced a partnership with Sezzle as our preferred partner to provide small and mid-market merchants the ability to offer interest-free “buy now, pay later” plans. The Company announced a new partner integration with Chargify to deliver subscription management services for U.S. B2B and/or B2C merchants to efficiently manage, track and analyze all subscription activity from within their store through Open Source Checkout. The Company announced a native integration with Amazon Multi-Channel Fulfillment (MCF) to give U.S. merchants an easier way to fulfill orders using Amazon’s fulfillment platform, and a partnership with Mercado Libre to give BigCommerce merchants the ability to sell across Latin America to nearly 133 million unique consumers on Mercado Libre’s Marketplace.

Q4 and 2021 Financial Outlook:

For the fourth quarter of 2021, the Company currently expects:

• Total revenue between $61.3 million and $61.7 million, translating into a year-over-year growth rate of 42% and 43%.
• Non-GAAP operating loss between ($8.0) million and ($9.2) million.

For the full year 2021, the Company currently expects:

• Total revenue between $216.2 million and $216.6 million, translating into a year-over-year growth rate of 42%.
• Non-GAAP operating loss between ($19.2) million and ($20.4) million.

The Company’s fourth quarter and 2021 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to Non-GAAP operating loss, and similarly cannot provide a reconciliation between its forecasted Non-GAAP operating loss and Non-GAAP net loss per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.