Analysis Of BigCommerce’s Acquisitions

Gray High Rise Buildings

Image Source: Pexels

E-commerce platform BigCommerce (BIGC) recently reported its first-quarter results that outpaced market expectations. According to a recent report, the global B2B e-commerce market is estimated to grow at 18% CAGR to $25.65 trillion by 2028. BigCommerce is looking to capture this market through acquisitions.


BigCommerce’s Financials

Revenue in the first quarter grew 42% to $66.1 million. GAAP net loss was ($37) million, compared to ($8.5) million from the fourth quarter of 2021. Non-GAAP net loss per share was ($0.18). Analysts had expected a loss of ($0.18) per share on revenue of $63.65 million.

By segment, subscription solutions revenue increased 50% to $48 million. Partner and services revenue (PSR) grew 23% to $18.06 million and accounted for 27% of its Q4 revenue. Among other business metrics, ARR from Enterprise accounts was up 68% to $189 million. Number of accounts greater than $2,000 in annual contract value (ACV) were up 52%. The average revenue per account (ARPA) of accounts greater than $2,000 in ACV was up 23% to $19,234.

For the second quarter of 2022, BigCommerce expects total revenue between $64.6 million and $67.5 million and non-GAAP operating loss between ($16) million and ($18) million. For the full year of 2022, it expects total revenue between $277.8 million and $286.6 million and non-GAAP operating loss between ($47.9) million and ($53.9) million. The market forecasts revenues of $66.2 million and a loss of $0.18 per share for the quarter and revenues of $278.36 million and a loss of $0.70 per share for the fiscal year.


BigCommerce’s Recent Acquisitions

Recently, BigCommerce announced the acquisition of BundleB2B, a BigCommerce technology partner that provides next-level B2B functionality for BigCommerce merchants. Texas-based BundleB2B provides tools that can seamlessly integrate with the BigCommerce platform to deliver advanced B2B functionality and easily facilitate B2B operations online. It shortens sales cycles and automates manual processes by providing capabilities such as account management, order tools, quote management, and sales rep support tools. BigCommerce and BundleB2B have been partners for a while. The recent acquisition will help strengthen this partnership and will integrate BundleB2B even more closely within the BigCommerce platform. Prior to the acquisition, BundleB2B was privately held and did not disclose either its financials or the deal terms.

In its focus to continue to strengthen the B2B offerings, BigCommerce had also recently acquired another Texas-based quoting app provider B2B Ninja. Also known as Quote Ninja, B2B Ninja is a leading enterprise software solution providing that provides B2B e-commerce capabilities for merchants of all sizes. It offers a best-in-class quoting solution, and the acquisition will strengthen BigCommerce’s ability to deliver e-commerce functionality to B2B merchants. Terms of the acquisition were not disclosed.

BigCommerce is focusing on growth through commerce-as-a-Service. Commerce-as-a-Service enables partners to create and sell customized commerce solutions powered by its platform technology. In the last quarter, it enabled five new reseller partnerships, including Clover, a leading North American point-of-sale and business management solution owned by Fiserv. Within international markets, it launched Fridom, Local.fr, Valuecom/Pay, and Avasam. These partnerships are expanding their reach to new merchants through the sales and marketing efforts of established category-specific technology solution providers. This ecosystem provides BigCommerce with the opportunity to onboard new merchants with marginal cost, build additional distribution, and create a flywheel to scale revenue profitably.

Recently, BigCommerce announced the expansion of its partnership with Bolt to offer a new way for small, medium, and enterprise-sized Big-Commerce merchants to set up Bolt One-Click Checkout quickly. Bolt is able to be pre-built into merchants’ BigCommerce stores, creating the ability to deliver secure, one-click transactions to create fast and seamless shopping experiences that increase engagement and conversion rates.

Its stock is currently trading at $19.59 with a market cap of $1.3 billion. It hit a 52-week high of $72.20 in July last year and a 52-week low of $12.71 earlier this month

Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.