E-commerce software platform provider BigCommerce (NASDAQ: BIGC) met the market’s revenue expectations in Q1 CY2025 as sales rose 2.5% year on year to $82.37 million. Its non-GAAP EPS of $0.07 per share was 32.5% above analysts’ consensus estimates.
Is now the time to buy BIGC? Find out in our full research report (it’s free).
BigCommerce (BIGC) Q1 CY2025 Highlights:
- Revenue: $82.37 million (2.5% year-on-year growth)
- Adjusted EPS: $0.07 vs analyst estimates of $0.05 (32.5% beat)
- Revenue Guidance for Q2 CY2025 is $83 million at the midpoint, below analyst estimates of $84.23 million
- Operating Margin: -2.9%, up from -10.2% in the same quarter last year
- Annual Recurring Revenue: $350.8 million at quarter end, up 3.1% year on year
- Market Capitalization: $421.3 million
StockStory’s Take
BigCommerce’s first quarter was shaped by ongoing efforts to transform its operations and focus on profitable growth. CEO Travis Hess emphasized progress in expanding sales capacity, realigning go-to-market strategies, and investing in both B2B and B2C solutions. Notably, management highlighted the successful onboarding of experienced sales professionals and the delivery of new features tailored to complex enterprise needs, such as upgraded quoting tools and multi-company support. CFO Daniel Lentz pointed to improvements in non-GAAP operating income margin and operating cash flow, underlining the company’s drive for efficiency. However, leadership acknowledged that current revenue growth rates do not reflect the business’s full potential, identifying pipeline expansion and execution on transformation initiatives as priorities for improvement.
Looking ahead, BigCommerce’s guidance reflects both optimism about internal progress and caution regarding external headwinds. Management cited the early success of go-to-market changes, upcoming product launches, and AI-driven enhancements as factors that could drive acceleration later in the year. “We see potential upside to our previous revenue growth guidance,” said CFO Daniel Lentz, while also warning that macroeconomic uncertainty, especially around global tariffs and supply chains, could create downside risk. CEO Travis Hess noted that the company’s widened guidance range accounts for possible volatility, emphasizing a balanced approach to investment and cost control. The leadership team remains focused on expanding wallet share, launching self-serve product features, and supporting customers in complex, regulated industries.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to completed salesforce expansion, increased investment in B2B capabilities, and early signs of progress from its transformation agenda.
-
Leadership team realignment: BigCommerce completed key executive hires, appointing a new Chief Product Officer and consolidating engineering leadership, aiming to strengthen expertise in SaaS and commerce technologies. CEO Travis Hess described these roles as “critical” for elevating product and engineering capabilities.
-
Expanded sales capacity: Following a 10% reduction in headcount last year, BigCommerce roughly doubled its quota-carrying sales force. Management believes this expansion drove a significant increase in sales pipeline, particularly in B2B, although the impact on deal closures will materialize over several quarters.
-
B2B and complex vertical momentum: The company reported ongoing success in serving manufacturers, distributors, and regulated industries, with new enterprise wins and product enhancements such as multi-company hierarchy and configure-price-quote tools designed for large, complex organizations.
-
Product bundle and cross-sell initiatives: Efforts to cross-sell Feedonomics and bundle offerings with partners like Noibu are underway, with new paid features and self-serve options targeted for release ahead of the holiday season. These initiatives are intended to streamline adoption and expand customer relationships.
-
AI-driven efficiency and partnerships: BigCommerce is embedding AI across its product suite, automating sales recommendations, onboarding, and data optimization. Partnerships with firms such as OpenAI and Gemini are expected to further enhance customer experience and operational agility.
Drivers of Future Performance
BigCommerce’s outlook is shaped by its transformation efforts, AI investments, and external macroeconomic risks, particularly tariffs and supply chain disruptions.
-
Sales and product investments: Management expects that the expanded sales team and targeted marketing spend in Q2 and Q3 will need to deliver higher pipeline conversion rates, especially in B2B, to reach the upper end of guidance. Success in cross-selling Feedonomics and launching new self-serve features is seen as critical for accelerating growth.
-
Macroeconomic headwinds: The company is closely monitoring the impact of global trade policy changes and increased tariffs, which could affect customer sentiment and transaction volumes. Management has widened its guidance range to reflect the greater uncertainty, noting that a sustained downturn could pressure subscription and partner revenues.
-
AI and payments initiatives: BigCommerce is prioritizing investment in AI-driven enhancements and the development of an integrated payments solution, scheduled for early next year. While these moves are expected to improve customer outcomes and monetization, management recognizes that new offerings may be dilutive to gross margins in the short term.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will watch (1) whether the expanded sales force drives improved pipeline conversion, particularly in B2B and complex verticals, (2) the impact of self-serve and bundled product launches on customer adoption and revenue growth, and (3) how macroeconomic factors—especially tariffs and global supply chain disruptions—affect partner revenues and customer sentiment. Execution on AI-driven enhancements and the rollout of BigCommerce Payments will also be key areas of focus.
BigCommerce currently trades at a forward price-to-sales ratio of 1.2×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it’s free).
Stocks That Trumped Tariffs
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
