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BigCommerce Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $83.7 million from $78.0 million in the same quarter the previous year. This increase is attributed to growth in both subscription solutions and partner and services revenue.
Cost of revenue for the quarter was $19.9 million, representing 24% of total revenue, compared to 24% in the same quarter of the previous year. The cost increase is primarily due to higher software costs and credit card processing fees.
The company reported a gross profit of $63.8 million for the quarter, compared to $59.0 million in the previous year, with the increase attributed to revenue growth.
Sales and marketing expenses decreased to $33.1 million from $36.3 million, primarily due to reduced variable marketing costs and decreased salaries and share-based compensation expenses.
Research and development expenses decreased to $20.8 million from $21.7 million, reflecting cost-cutting measures.
General and administrative expenses increased to $16.4 million from $14.3 million, mainly due to an increase in bad debt expense and professional service expenses.
The company recorded a gain of $12.1 million from the extinguishment of convertible notes.
Net loss for the quarter was $7.0 million, down from $20.3 million in the previous year. The decrease in net loss is attributed to the gain on convertible note extinguishment and reduced operating expenses.
Cash provided by operating activities was $5.6 million, while cash used in investing and financing activities was $9.3 million and $112.1 million, respectively.
BigCommerce had cash, cash equivalents, and restricted cash of $37.0 million as of September 30, 2024. The company anticipates additional restructuring costs through fiscal 2025, estimated between $3.5 million and $5.7 million.
The filing also details the company's restructuring plan, which includes workforce reductions, lease exits, and software project impairments to align operating expenses with strategic priorities.
BigCommerce does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting related to information technology general controls.
BigCommerce continues to focus on its 'Open SaaS' strategy, building partnerships, and investing in platform development to drive growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the BigCommerce Holdings Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.