Executive Summary

Q1 2025 revenue was $82.4M (+3% YoY) with non-GAAP operating income of $7.6M, materially above the prior guidance range ($4–$5M); GAAP loss from operations improved to ($2.4M) from ($8.2M) YoY .
Gross margins expanded: GAAP 79% (vs. 77% YoY), non-GAAP 80% (vs. 78% YoY); adjusted EBITDA rose to $8.8M (vs. $4.2M YoY) on disciplined opex and product/support efficiencies .
Guidance widened for FY25 revenue to $335.1–$351.1M and non-GAAP operating income to $16–$28M to reflect both upside potential and macro/tariff uncertainty; Q2 revenue guided to $82.5–$83.5M and non-GAAP OI $2.7–$3.7M .
Strategic catalysts: accelerating B2B product roadmap (CPQ, account hierarchy/permissioning), composable partnerships (Pipe17), and Klarna upgrade to global preferred partner; management emphasized AI-driven efficiency and sales capacity doubling to reaccelerate growth through 2H25 .

What Went Well and What Went Wrong

What Went Well

Non-GAAP profitability outperformed: $7.6M non-GAAP operating income (9.2% margin) vs. $3.2M YoY; adjusted EBITDA $8.8M vs. $4.2M YoY; GAAP OI loss narrowed to ($2.4M) from ($8.2M) .
Gross margin expansion (GAAP 79%, non-GAAP 80%) and operating cash flow positive ($0.4M) demonstrated improving unit economics and cost control; free cash flow was impacted by a one-time domain purchase .
CEO Hess highlighted “encouraging signs of progress” including pipeline increases (particularly B2B), leadership hires, and AI-driven go-to-market/product enhancements; CFO Lentz noted net debt reduced to ~$32.2M and stronger non-GAAP margins and cash position ($121.9M in cash and securities) .

What Went Wrong

Enterprise accounts declined to 5,825 (down 2% YoY), marking five consecutive quarters of slight sequential declines; management is “not okay” with unit declines and aims to restore growth while ARPA rose 9% YoY .
Partner & services revenue exposure (~25% of total) is vulnerable to macro/tariff-driven volume swings; management widened guidance ranges to reflect increased uncertainty despite limited impacts to date .
Q2 non-GAAP operating income guide ($2.7–$3.7M) implies sequential margin compression vs. Q1 actuals as merit increases and stepped-up marketing investments flow through; management prioritizes balanced reinvestment to drive growth .

Financial Results

Core P&L and Cash Metrics (USD Millions unless noted)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue	$83.710	$87.028	$82.370
GAAP Gross Margin %	76%	78%	79%
Non-GAAP Gross Margin %	78%	78%	80%
GAAP Loss from Operations	($19.217)	($0.751)	($2.410)
Non-GAAP Operating Income	$4.323	$10.085	$7.589
Adjusted EBITDA	$5.373	$11.031	$8.833
GAAP Net Income (Loss)	($6.993)	($2.390)	($0.353)
GAAP Basic EPS	($0.09)	($0.03)	($0.00)
Non-GAAP Basic EPS	$0.06	$0.11	$0.07
Operating Cash Flow	$5.573	$12.360	$0.401
Free Cash Flow	$4.509	$11.573	($2.868)

Segment Revenue

Segment	Q3 2024	Q4 2024	Q1 2025
Subscription Solutions	$62.826	$62.288	$62.114
Partner & Services	$20.884	$24.740	$20.256
Total Revenue	$83.710	$87.028	$82.370

Geographic Revenue

Region	Q3 2024	Q4 2024	Q1 2025
United States	$63.682	$66.078	$62.621
EMEA	$9.709	$9.994	$9.965
APAC	$6.426	$6.739	$5.925
Rest of World / Americas-other	$3.893	$4.217	$3.859

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Total ARR	$347.8	$349.6	$350.8
Enterprise ARR	$256.9	$261.6	$263.8
Enterprise Accounts (#)	5,892	5,884	5,825
Enterprise ARPA	$43,600	$44,458	$45,290

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q1 2025	$81.2M–$83.2M	Actual $82.4M	Met (in range)
Non-GAAP Operating Income	Q1 2025	$4M–$5M	Actual $7.6M	Raised/Beat
Revenue	Q2 2025	N/A	$82.5M–$83.5M	New
Non-GAAP Operating Income	Q2 2025	N/A	$2.7M–$3.7M	New
Revenue	FY 2025	$342.1M–$350.1M	$335.1M–$351.1M	Widened (lower low end, higher high end)
Non-GAAP Operating Income	FY 2025	$20M–$24M	$16M–$28M	Widened (lower low end, higher high end)

Management widened ranges to reflect encouraging pipeline and wallet-share initiatives on the high end and tariff/macro uncertainty on the low end .

Earnings Call Themes & Trends

Topic	Q3 2024	Q4 2024	Q1 2025	Trend
AI/Technology Initiatives	Introduced BigAI tools, composable enhancements; integration roadmap (Catalyst + Makeswift; self-serve Feedonomics)	Emphasis on AI-enabled GTM/product support; Catalyst hosted plan; self-serve Feedonomics in 2025	AI focus across sales/support; partnerships with OpenAI, Gemini, Perplexity; Feedonomics powering ~30% IR1000 syndication	Expanding scope and integrations
Go-to-Market Transformation	Restructuring, specialization by B2B/B2C/SMB	Doubling quota-carrying capacity; integrate brands; target ARR ahead of revenue	Capacity largely complete; pipeline strengthening; margin discipline with reinvestment	Execution phase underway
B2B Product & Pipeline	Strength in EMEA; B2B bookings growing	Half of net-new bookings B2B; CPQ roadmap	New CPQ & hierarchy/permissioning; strong B2B pipeline/conversion expectations	Building feature depth, conversion focus
Tariffs/Macro	Monitoring; uncertain impacts	Conservative FY25 stance; similar macro to 2024	Guidance widened; PSR most exposed; no material impact yet	Heightened caution
Payments/Partnerships	Partnerships (TD eCommerce solution, Ubique Digital)	Klarna global preferred partner; payments solution roadmap	Klarna elevated; payments offering targeted early 2026	Attach strategy forming
Enterprise Accounts & ARPA	Enterprise accounts slightly down; ARPA up	Unit count roughly flat/down; prioritizing dollarized retention	Enterprise accounts down to 5,825; ARPA +9% YoY; management not satisfied with unit declines	ARPA up, unit count pressure

Management Commentary

CEO Hess: “Our transformation efforts are leading to encouraging signs of progress... Reaccelerating growth remains our top priority for the remainder of this year.”
CFO Lentz: “Our non-GAAP gross margin strengthened to 80.3%... non-GAAP operating income margin finished Q1 at 9.2%... We closed Q1 2025 with $121.9M in cash, cash equivalents and marketable securities.”
CEO Hess on AI: “We are leveraging AI to deliver major improvements to sales and support efficiency... partnerships with OpenAI, Gemini and Forethought drive agility and innovation.”
CFO Lentz on macro/tariffs: “We have not yet seen a material impact... we are maintaining a cautious view... PSR would be most directly exposed.”
CEO Hess on payments: “Klarna... moved to a preferred partner status... Our new BigCommerce payments offering remains on track for an early 2026 launch.”

Q&A Highlights

Pipeline and conversion: Pipeline grew QoQ/YoY, particularly B2B; larger B2C deals may lengthen cycles; no obvious macro impact yet in internal metrics .
Guidance philosophy: High end requires continued pipeline build and effective marketing conversion; low end would require increased churn or sustained downturn affecting PSR and new business .
Gross margin sustainability: Improvements are expected to be sustainable; some expenses reclassified from COGS to S&M starting Q1; Q2 OpEx step-up from merits and marketing .
Enterprise accounts trend: Five quarters of slight sequential declines; focus on ARPA growth and wallet-share expansion while aiming to restore unit growth .
Payments strategy: Klarna preferred partner to drive conversion; internal payments offering targeted early 2026 for SMBs, optional attach (not displacing partners) .

Estimates Context

Wall Street consensus via S&P Global for BIGC was unavailable at this time due to a missing mapping in SPGI/CIQ for the ticker; therefore, estimate comparisons are not included. We anchor performance vs. company guidance and prior periods from primary documents .

Key Takeaways for Investors

Q1 execution strong: Revenue in range; non-GAAP operating income beat prior guidance, with expanded margins and positive operating cash flow—evidence that the transformation is improving unit economics .
Guidance widened: FY25 ranges raised at the high end and lowered at the low end—management balances upside from pipeline/sales capacity with downside from tariffs/macro; monitor Q2 PSR volumes for sensitivity .
B2B priority: New CPQ and multi-company account hierarchy/permissioning should support enterprise deal velocity and expansion; expect wallet-share initiatives (self-serve Feedonomics/Makeswift) to contribute 2H25 .
Composable ecosystem: Klarna preferred partnership and Pipe17 order operations enhance attach/retention potential without compromising openness; watch attach rates into payments in 2026 .
Mixed KPIs: Enterprise account count decline persists, but ARPA and Enterprise ARR continue to rise; unit count stabilization will be a key signal for sustainable reacceleration .
Operating leverage vs. reinvestment: Q2 OpEx step-up and lower non-GAAP OI guide reflect reinvestment to drive growth; margin expansion likely contingent on conversion/ARR acceleration in 2H25 .
Trading implications: Near term, stock likely reacts to confirmation of pipeline-to-revenue conversion and PSR resilience amid tariffs; medium term thesis centers on B2B/product bundling, AI-driven efficiency, and open-partner model translating into ARR acceleration and durable margins .

Appendix: Additional Product/Partnership Press (Q1 2025)

Pipe17 partnership to transform composable order operations and connectivity across fulfillment endpoints .
B2B product enhancements: CPQ and multi-company account hierarchy/advanced permissioning to streamline quote-to-cash and complex buyer structures .
Klarna designated global preferred payments partner to drive conversion with BNPL options .

BigCommerce Holdings, Inc. (BIGC)·Q1 2025 Earnings Summary