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BigCommerce Holdings, Inc. (BIGC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $87.0M (+3% YoY) with non-GAAP operating income of $10.1M (11.6% margin), both ahead of company’s prior Q4 guidance; adjusted EBITDA rose to $11.0M (12.7% margin), reflecting accelerated cost discipline and restructuring benefits .
  • GAAP diluted loss per share was ($0.03) while non-GAAP diluted EPS was $0.11, improving from $0.09 in Q4 2023; operating cash flow was $12.4M and free cash flow $11.6M for the quarter .
  • Management guided Q1 2025 revenue to $81.2–$83.2M and FY 2025 revenue to $342.1–$350.1M, targeting continued low-to-mid single-digit operating margin expansion while reinvesting in growth; guidance tone remains conservatively framed to macro uncertainty .
  • Strategic catalysts: go-to-market transformation (doubling quota-carrying sales capacity by mid-2025), AI-enabled sales/enablement, Catalyst composable storefront momentum, and enterprise mix shift (Enterprise ARR now 75% of total) .

What Went Well and What Went Wrong

What Went Well

  • Margin outperformance: non-GAAP operating margin expanded to 11.6% (from 6.4% in Q4 2023); adjusted EBITDA margin rose to 12.7% (from 7.8%), driven by cuts to ineffective S&M spend and ~10% headcount reduction. “We made these gains by cutting ineffective sales and marketing spend, by reducing headcount approximately 10% and by focusing on high-quality bookings” .
  • Enterprise mix and ARR: Enterprise ARR grew 7% YoY to $261.6M; total ARR reached $349.6M (+4% YoY), with Enterprise now 75% of total .
  • Cash generation and balance sheet actions: operating cash flow $12.4M in Q4; subsequent repurchase of ~$59.0M of 2026 notes reduced total debt to ~$154.1M .

What Went Wrong

  • Growth still modest: Q4 revenue +3% YoY; management acknowledged revenue growth targets not met and set reacceleration as “#1 priority” .
  • Enterprise account count slipped: enterprise accounts were 5,884 (−2% YoY), signaling competitive intensity and slower gross adds, despite ARPA rising 9% .
  • APAC softness: Q4 APAC revenue declined 1% YoY; management expects non-enterprise ARR to be flat/slightly down near-term as transformation actions take hold .

Financial Results

Consolidated Performance vs prior quarters (Q2→Q3→Q4 2024)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$81.829 $83.710 $87.028
GAAP Net Income ($USD Millions)$(11.255) $(6.993) $(2.390)
GAAP Basic EPS ($USD)$(0.15) $(0.09) $(0.03)
Non-GAAP Net Income ($USD Millions)$4.124 $4.437 $8.446
Non-GAAP Diluted EPS ($USD)$0.05 $0.06 $0.11
Non-GAAP Operating Income ($USD Millions)$1.891 $4.323 $10.085
Non-GAAP Operating Margin %2.3% 5.2% 11.6%
Adjusted EBITDA ($USD Millions)$2.951 $5.373 $11.031
Adjusted EBITDA Margin %3.6% 6.4% 12.7%
GAAP Gross Margin %76% 76% 78%
Non-GAAP Gross Margin %77% 78% 78%

Segment Revenue

Segment ($USD Millions)Q2 2024Q3 2024Q4 2024
Subscription Solutions$61.796 $62.826 $62.288
Partner & Services$20.033 $20.884 $24.740
Total Revenue$81.829 $83.710 $87.028

Revenue by Geography

Geography ($USD Millions)Q2 2024Q3 2024Q4 2024
Americas – U.S.$62.428 $63.682 $66.078
Americas – other$3.777 $3.893 $4.217
EMEA$9.281 $9.709 $9.994
APAC$6.343 $6.426 $6.739
Total Revenue$81.829 $83.710 $87.028

KPIs and Mix

KPIQ2 2024Q3 2024Q4 2024
Total ARR ($USD Millions)$345.8 $347.8 $349.6
Enterprise ARR ($USD Millions)$253.8 $256.9 $261.6
Enterprise ARR as % of Total73% 74% 75%
Enterprise Accounts (count)5,961 5,892 5,884
ARPA – Enterprise ($USD)$42,576 $43,600 $44,458
Enterprise NRR (%)——99%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Revenue ($USD Millions)Q4 2024$85.8–$87.8 $87.028 Raised vs high end / beat
Non-GAAP Operating Income ($USD Millions)Q4 2024$4.4–$6.4 $10.085 Strong beat
Revenue ($USD Millions)FY 2024$331.7–$333.7 $332.927 In line/at upper end
Non-GAAP Operating Income ($USD Millions)FY 2024$13.8–$15.8 $19.462 Beat
Revenue ($USD Millions)Q1 2025—$81.2–$83.2 New
Non-GAAP Operating Income ($USD Millions)Q1 2025—$4–$5 New
Revenue ($USD Millions)FY 2025—$342.1–$350.1 New
Non-GAAP Operating Income ($USD Millions)FY 2025—$20–$24 New

Earnings Call Themes & Trends

TopicQ2 2024 (Prior-2)Q3 2024 (Prior-1)Q4 2024 (Current)Trend
AI/Technology initiativesProduct launches incl. Fastlane checkout; Next Big Thing features BigAI recommendations, copywriter; multi-geo; Catalyst enhancements AI enabling sales efficiency, support; Catalyst momentum and hosted version planned Expanding AI across GTM and product
Go-to-market & sales capacityEarly restructuring; modest non-GAAP op income Leadership changes; restructuring charges; non-GAAP op income improvement Doubling quota-carrying sales by mid-2025; matrixed marketing; partner focus Capacity ramp to drive H2 2025 bookings
Macro/tariffs & FX——Conservative guide; tariffs folded into macro view; FX immaterial Cautious but optimistic
Enterprise mix & NRREnterprise % ARR 73% 74% 75%; NRR 99% (targeting best-in-class) Mix shift to enterprise, NRR recovery goal
Regional trendsAmericas +9% YoY; EMEA +7%; APAC +9% Americas +6%; EMEA +12%; APAC +9% Americas +4%; EMEA +5%; APAC −1% YoY APAC softness in Q4
Product positioningCore platform + Feedonomics traction CEO change; enterprise positioning Catalyst reference architecture; bundles planned; B2B focus Sharper composable narrative

Management Commentary

  • “We finished 2024 with non-GAAP operating income exceeding $19 million… We made these gains by cutting ineffective sales and marketing spend, by reducing headcount approximately 10% and by focusing on high-quality bookings” — Travis Hess, CEO .
  • “We are on track to double our quota-carrying sales team by mid-2025… capacity ramp largely complete by end of Q4” — Travis Hess & Daniel Lentz .
  • “Catalyst is our accelerated reference architecture… leveraging best-in-class components… at a fraction of the cost, time and complexity” — Travis Hess .
  • “We expect ARR growth rates tipping slightly ahead of revenue… aiming for low- to mid-single-digit operating margin expansion in 2025” — Daniel Lentz, CFO .

Q&A Highlights

  • Leading indicators: pipeline quality as first KPI; ARR growth expected to outpace revenue as transformation translates to bookings mid-year .
  • Margin vs growth: 2025 margin expansion does not require revenue upside beyond guidance; will reinvest where ROI is strong to reaccelerate growth .
  • Sales capacity ramp: doubling quota capacity timed for H2 2025 efficacy; onboarding accelerated via AI enablement; majority of hires completed by Q4 .
  • Macro/tariffs: guidance constructed conservatively; tariff risks treated within broader macro view; FX exposure immaterial .
  • Partners: deeper, more focused partner strategy (ISVs, GSIs, agencies) to improve lead quality and shared MDF costs; Klarna BNPL partnership noted .
  • Enterprise NRR: targeting best-in-class (~pandemic-era ~113% referenced), leveraging bundles (Catalyst, Feedonomics self-serve, Makeswift, payments) to raise NRR floor .
  • Non-enterprise outlook: small business ARR expected flat for FY 2025; expansion levers in self-serve Feedonomics and Makeswift .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable via our data connector at time of analysis; as a result, comparisons to consensus cannot be provided and should be evaluated externally. Values retrieved from S&P Global were unavailable due to mapping error.
  • Relative to company guidance, Q4 revenue landed at the high end and non-GAAP operating income materially exceeded the range, implying a significant beat vs internal expectations .

Key Takeaways for Investors

  • Profitability inflection continues: non-GAAP operating margin and adjusted EBITDA margins scaled meaningfully; Q4 margins beat prior guidance and set a higher bar entering 2025 .
  • Mix shift to enterprise (75% of ARR) with rising ARPA suggests durable monetization; near-term small business likely flat, but self-serve products could widen TAM over time .
  • Execution roadmap: doubled sales capacity, AI-enabled GTM, and Catalyst bundles position H2 2025 as the period to watch for bookings acceleration and ARR outperformance .
  • Conservative 2025 guide indicates prudent stance amid macro uncertainty; upside exists if pipeline converts faster and partner-led motions deepen .
  • Debt management and cash generation reduce balance sheet risk; post-Q4 note repurchases lower 2026 maturities and support flexibility .
  • Watch NRR trajectory: management aims to restore enterprise NRR toward best-in-class via cross-sell (Feedonomics, Makeswift, payments) and curated composable bundles .
  • Near-term trading lens: margin strength and beat vs guidance are positive; cautious 2025 revenue guide and APAC softness temper immediate growth enthusiasm, making Investor Day (Mar 11) a potential narrative catalyst .