AUSTIN, Texas - BigCommerce Holdings, Inc. (NASDAQ:BIGC), a leading Open SaaS ecommerce platform, reported a stronger-than-expected fourth quarter, with earnings per share (EPS) of $0.10, surpassing the analyst consensus of $0.05. The company's revenue also exceeded expectations, coming in at $84.1 million against the estimated $81.53 million. This performance reflects a 16% increase compared to the fourth quarter of the previous year.
The company's stock rose 3% following the announcement, signaling a positive market response to the earnings beat and revenue growth. This uptick is attributed to the company's better-than-expected EPS and revenue.
BigCommerce's adjusted EBITDA for the fourth quarter was $6.5 million, or approximately 8% of revenue, marking a significant improvement in profitability with nearly a 20-point profit margin increase over the last year. Brent Bellm, CEO of BigCommerce, highlighted the company's financial transformation and its focus on customer success and industry-leading products and services. He expressed the company's aspiration to become the most loved ecommerce platform globally, with innovations in AI and the recent launch of the next-generation Catalyst storefront technology.
For the first quarter of 2024, BigCommerce forecasts revenue to be between $76 million and $78 million, which is below the analyst consensus of $80.23 million. The company's guidance for the full year 2024 anticipates total revenue between $327.1 million and $335.1 million, with the midpoint falling short of the consensus estimate of $336.3 million.
Daniel Lentz, CFO at BigCommerce, emphasized the company's significant strides in driving positive operating cash flow and expressed optimism about the company's plans for 2024, focusing on efficient revenue growth. "We are seeing success from our Q3 2023 restructuring and 2024 financial plan," Lentz stated, noting improvements in cross-sell results and retention rates.
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