BigCommerce Announces Fourth Quarter and Fiscal 2021 Financial Results

BigCommerce, a leading Open SaaS eCommerce platform for fast-growing and established brands, today announced financial results for its fourth quarter ended December 31, 2021.

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“Q4 was another outstanding quarter for BigCommerce as our revenue grew to $64.9 million, up 50% year-over-year. Our full-year revenue grew to $219.9 million, up 44% year-over-year, marking our fourth consecutive year of accelerating revenue and subscription growth,”

“This growth reflects the flexibility and performance of our Open SaaS platform and the continued execution of our top strategic priorities, particularly international expansion and enterprise growth. Our revenue in EMEA grew by 60% and revenue in APAC increased 54% compared to the fourth quarter of 2020. ARR from enterprise accounts was up 72% over the end of 2020.”

Brent Bellm, Chief Executive Officer, BigCommerce.

BigCommerce Q4 Financial Highlights:

• Total revenue was $64.9 million, up 50% compared to the fourth quarter of 2020.
  
• Total annual revenue run-rate (ARR) as of December 31, 2021 was $268.7 million, up 48% compared to December 31, 2020.
  
• Subscription revenue was $46.9 million, up 58% compared to the fourth quarter of 2020.
  
• ARR from accounts with at least one enterprise plan (“Enterprise Accounts”) was $172.9 million as of December 31, 2021, up 72% from December 31, 2020, reflecting continued strength and growth with midmarket and enterprise accounts.
  
• ARR from Enterprise Accounts as a percent of total ARR was 64% as of December 31, 2021, compared to 56% as of December 31, 2020.
  
• ARR from accounts greater than $2,000 in ACV was $237.2 million as of December 31, 2021, up 59% from December 31, 2020.
  
• ARR from accounts greater than $2,000 in ACV as a percent of total ARR was 88%, compared to 82% as of December 31, 2020.
  
• GAAP gross margin was 74%, compared to 76% in the fourth quarter of 2020 due to investments in additional localized support and infrastructure behind international expansion and other investments. Non-GAAP gross margin was 76%, compared to 77% in the fourth quarter of 2020.

Other Key Business Metrics

• The number of BigCommerce accounts greater than $2,000 in ACV was 12,754, up 25% compared to the fourth quarter of 2020.
  
• Average revenue per account (ARPA) of accounts greater than $2,000 in ACV was $18,598, up 27% compared to the fourth quarter of 2020.
  
• Revenue in the Americas grew by 49%, compared to the fourth quarter of 2020.
  
• Revenue in EMEA grew by 60% and revenue in APAC grew by 54% compared to the fourth quarter of 2020.

Operating Income/(Loss)

• Fourth-quarter ending December 31, 2021, GAAP operating loss was ($33.8) million, compared to ($13.8) million in the fourth quarter of 2020. Year ending December 31, 2021, GAAP operating loss was ($75.9) million, compared to ($38.7) million in 2020.
  
• Fourth-quarter ending December 31, 2021, Non-GAAP operating loss was ($11.6) million, compared to ($7.6) million in the fourth quarter of 2020. Year ending December 31, 2021, Non-GAAP operating loss was ($22.8) million, compared to ($27.4) million in 2020.

Net Income/(Loss) and Earnings Per Share

• GAAP net loss was ($34.2) million, compared to ($14.2) million in the fourth quarter of 2020.
  
• Non-GAAP net loss was ($12.1) million or (19%) of total revenue, compared to ($8.0) million or (18%) of total revenue in the fourth quarter of 2020.
  
• GAAP net loss per share was ($0.48) based on 72.0 million weighted-average shares of common stock outstanding, compared to ($0.21) based on 68.6 million weighted-average shares of common stock outstanding in the fourth quarter of 2020.
  
• Non-GAAP net loss per share was ($0.17) based on 72.0 million weighted-average shares of common stock outstanding, compared to ($0.12) based on 68.6 million weighted-average shares of common stock outstanding in the fourth quarter of 2020.

Adjusted EBITDA

• Adjusted EBITDA was ($11.0) million, compared to ($6.8) million in the fourth quarter of 2020.

Cash

• Cash, cash equivalents, restricted cash, and marketable securities totaled $401 million as of December 31, 2021.
  
• For the twelve months ended December 31, 2021, net cash used in operating activities was ($40.3) million, compared to ($26.5) million for the same period in 2020.
  
• Free cash flow was ($43.6) million, compared to ($28.5) million for the same period in 2020.

Business Highlights:

Corporate Highlights:

In November, BigCommerce was named to Inc. Magazine’s first annual Best-Led Companies list, a data-driven recognition measuring management excellence in U.S. companies with revenue of $50 million to $2 billion. Earlier this month, we received a 2022 Most Loved Award from TrustRadius, reflecting positive customer reviews BigCommerce has received on TrustRadius.

At a time when aggregate U.S. retail eCommerce declined during Cyber Week for the first time, BigCommerce merchants bucked the trend with a year-over-year GMV increase of 15%. In the last two years, BigCommerce merchants’ Cyber Week sales have increased +103%.

BigCommerce saw a 100% Cyber Week performance uptime, marking the eighth consecutive year of zero reported site downtime during the peak holiday period. Building on our earlier international expansion into the Netherlands, France, and Italy, we formally launched in Mexico, Germany, and Spain in January of this year.

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 launched Google Ads and Listings to help our merchants in the U.S. connect their stores to the Google Merchant Center and add products for free.

Merchant Highlights: In the coming days, the Company will launch a new custom-tailored online store for Ted Baker, the UK-based global lifestyle brand.

Additionally, BigCommerce added leading brands across numerous categories, merchants including Draper Tools, one of the largest wholesale hardware stores in the UK; Dermaviduals, an Australian skincare company; Vinaggi, an Italy-based wine, and spirits company; J.Parker’s, a UK-based, mail-order horticultural supplier of bulbs, plants, and shrubs; and King Arthur Baking Company, best known for its flour, which migrated to BigCommerce to improve maintenance efficiency, speed the introduction of new features, and optimize the end-user experience for stronger engagement and improved eCommerce conversion.

Partner Highlights: The Company announced an incentivized TikTok advertising coupon program to invest in and help our merchants succeed on TikTok For Business. The Company launched a new 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.

We launched a new partner integration with Chargify to deliver subscription management services for the U.S. B2C and B2B merchants to efficiently manage, track and analyze all subscription activity from within their store through Open Source Checkout. Last week, we announced a direct integration with Digital River, an experienced global commerce enabler, to provide mid-market to enterprise BigCommerce merchants with an all-in-one global commerce solution that fully manages payments, tax, fraud, and compliance to simplify cross-border selling and accelerate global expansion.

Q1 and 2022 Financial Outlook:

For the first quarter of 2022, the Company currently expects:

• Total revenue between $61.9 million and $65.1 million, translating into a year-over-year growth rate of 33% and 40%.
  
• Non-GAAP operating loss between ($11.5) million and ($13.5) million.

For the full year 2022, the Company currently expects:

• Total revenue between $271.6 million and $283.6 million, translating into a year-over-year growth rate of 24% and 29%, or 27% at the midpoint.
  
• Non-GAAP operating loss between ($45.9) million and ($53.9) million.

The Company’s first quarter and 2022 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.