BIGC Stock Forecast & Price Target

BigCommerce Holdings Inc. demonstrated robust financial performance in 4Q24, with total revenue exceeding expectations by approximately $219,000, marking a 3.4% year-over-year increase driven by growth in both subscription and professional services revenue. The company's enterprise Annual Recurring Revenue (ARR) reached $261.6 million, reflecting a 6.7% year-over-year growth and constituting 75% of the overall ARR mix, indicating a strong demand for its SaaS offerings. Furthermore, the integration of Makeswift and Feedonomics into the core BIGC platform, along with an increased focus on account management, suggests a strategic approach to enhance product penetration and drive growth moving forward.

BigCommerce Holdings Inc. has experienced a decrease in enterprise accounts, falling from 5,892 to 5,884, which reflects a 1.8% decline, despite a year-over-year increase in enterprise average revenue per account (ARPA) of 8.7% to $44,458. Additionally, the company's retail annual recurring revenue (ARR) decreased from $90.9 million to $88.0 million on a net dollar basis, suggesting challenges in revenue growth. Finally, a forecast for FY25 indicates expectations that underwhelm relative to market predictions, compounded by concerns over customer retention and shrinking free cash flow margins, which have contracted by approximately 120 basis points year-over-year, highlighting potential operational and competitive issues.