BIGC Stock Forecast & Price Target

BigCommerce Holdings Inc demonstrated a positive financial performance in 4Q24, with total revenue exceeding estimates by approximately $219,000, primarily driven by a 2.8% year-over-year increase in subscription revenue to $62.3 million and a 5.1% year-over-year growth in professional services revenue to $24.7 million. The company achieved a significant increase in enterprise annual recurring revenue (ARR), which rose by $4.7 million sequentially to reach $261.6 million, representing a 6.7% year-over-year growth and contributing to 75% of the overall ARR mix. Additionally, the company's strategic initiatives, including the integration of Makeswift and Feedonomics into its core platform, coupled with an expansion in account management resources, suggest a favorable outlook for accelerated growth and profitability over the next three to five years.

BigCommerce Holdings Inc. has demonstrated a concerning trend, as evidenced by a sequential decrease in enterprise accounts from 5,892 to 5,884, which reflects a 1.8% decline since the previous quarter. Additionally, the company's retail annual recurring revenue (ARR) fell from $90.9 million to $88.0 million, indicating potential weaknesses in customer retention and growth. Furthermore, the free cash flow of $11.6 million, coupled with a decline in margin, underscores the challenges the company faces as it appears to underperform against market expectations for FY25, raising concerns about its future profitability and competitive positioning.