BigCommerce Holdings, Inc. (BIGC): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how BigCommerce Holdings, Inc. established itself as a key player in the competitive e-commerce platform space, achieving total annual recurring revenue (ARR) of $337.2 million by the end of 2023? This Open SaaS provider empowers businesses of all sizes, from nimble startups to large enterprises, reporting total revenue of $84.1 million in the fourth quarter of 2023 alone. Are you curious about the journey behind these numbers, the ownership structure that guides its strategy, and precisely how it generates income in today's dynamic digital marketplace?

BigCommerce Holdings, Inc. (BIGC) History

BigCommerce's Founding Timeline

Understanding where a company comes from provides essential context for its current position and future potential. Let's look at the early days.

Year established

2009

Original location

Sydney, Australia

Founding team members

Eddie Machaalani and Mitchell Harper

Initial capital/funding

Initially bootstrapped, later secured $15 million in Series A funding from General Catalyst in 2011.

BigCommerce's Evolution Milestones

Growth is rarely linear. Key events mark significant shifts in strategy, scale, and market position. Here are some pivotal moments in the company's journey up to the end of 2024.

BigCommerce's Transformative Moments

Certain decisions fundamentally reshape a company's trajectory. These were game-changers.

Relocation and US Market Focus (2011)

Moving headquarters from Sydney to Austin and securing Series A funding signaled a decisive pivot to capture the larger, more dynamic US e-commerce market. This move was foundational for future growth and attracting further investment.

Launch of BigCommerce Enterprise (2015)

This wasn't just a new product tier; it was a strategic realignment. Targeting larger businesses diversified revenue streams, increased average revenue per customer (ARPU), and positioned the platform against more established enterprise solutions. It required significant investment but opened up a much larger market segment.

Going Public (IPO - 2020)

The Nasdaq listing provided substantial capital, enhanced brand credibility, and created liquidity for early investors and employees. It also brought increased scrutiny and the pressures of quarterly reporting, fundamentally changing how the company operated and planned financially.

Embracing Headless Commerce (Ongoing)

Actively investing in and promoting headless capabilities acknowledged the evolving needs of sophisticated merchants seeking flexibility and customization. This technical shift keeps the platform competitive, particularly in the enterprise space where bespoke front-end experiences are critical.

BigCommerce Holdings, Inc. (BIGC) Ownership Structure

BigCommerce Holdings, Inc. operates as a publicly traded company, meaning its shares are owned by a mix of institutional investors, the general public, and company insiders. This structure influences its governance and strategic direction.

BigCommerce Holdings, Inc.'s Current Status

As of the end of 2024, BigCommerce Holdings, Inc. is listed on the Nasdaq stock exchange under the ticker symbol BIGC. It transitioned to a public company through its Initial Public Offering (IPO) in August 2020.

BigCommerce Holdings, Inc.'s Ownership Breakdown

The ownership is primarily concentrated among large institutional investors, reflecting confidence from the financial markets. Data based on filings proximate to the end of the 2024 fiscal year shows the following approximate distribution:

BigCommerce Holdings, Inc.'s Leadership

The company's strategic direction and day-to-day operations are guided by an experienced executive team. Key figures leading the company as of the end of 2024 include:

• Brent Bellm: Chairman, President, and Chief Executive Officer
• Daniel Lentz: Chief Financial Officer
• Russell Klein: Chief Commercial Officer
• Brian Dhatt: Chief Technology Officer
• Lisa Pearson: Chief Marketing Officer

This leadership team brings diverse experience from technology, e-commerce, and finance sectors, steering the platform's growth and innovation efforts.

BigCommerce Holdings, Inc. (BIGC) Mission and Values

The company's operational philosophy and cultural identity are deeply rooted in its dedication to merchant enablement and a clear set of guiding principles. These foundational elements offer a window into their strategic focus and approach within the dynamic e-commerce sector.

BigCommerce's Core Purpose

Official mission statement

To help merchants sell more at every stage of growth, from small startups, to mid-market businesses, to large enterprises.

Core Values

Driving the day-to-day execution and long-term strategy are the company's core values, shaping interactions and decisions:

• Customers First: Placing the success and needs of their merchants at the forefront.
• Team on a Mission: Fostering a collaborative environment focused on achieving collective objectives.
• Think Big: Encouraging bold ideas and forward-thinking solutions to drive innovation.
• Act with Integrity: Upholding transparency and ethical conduct in all business dealings.
• Make a Difference Every Day: Emphasizing the importance of meaningful contributions from every team member.

These values permeate the organization, influencing product strategy, customer engagement, and ultimately contribute to the company's market position, a factor explored further in Breaking Down BigCommerce Holdings, Inc. (BIGC) Financial Health: Key Insights for Investors.

Company slogan

Reflecting their primary focus, the company often utilizes the concise slogan: Sell More.

BigCommerce Holdings, Inc. (BIGC) How It Works

The company provides a comprehensive software-as-a-service (SaaS) e-commerce platform empowering businesses to create and manage online stores across various channels. It generates revenue primarily through monthly subscription fees tiered by features and sales volume, along with partner revenue shares and payment processing services.

Product/Service Portfolio

Operational Framework

The company operates by continuously developing and maintaining its core SaaS platform, investing significantly in research and development, often exceeding 20% of its annual revenue, to innovate and add features. Its sales and marketing teams acquire merchants through direct outreach, partnerships, and digital marketing, with these expenses typically representing a significant portion of revenue, sometimes upwards of 40% based on recent fiscal year trends. Customer success is managed through tiered support plans and dedicated resources for larger clients. The platform infrastructure is designed for high availability and scalability to handle fluctuating transaction volumes for its global merchant base, which numbered in the tens of thousands as of late 2024. This operational structure supports the generation of Annual Recurring Revenue (ARR), estimated to be approaching the $350 million mark by year-end 2024, primarily from subscriptions which make up around 75-80% of total revenue. A critical aspect involves managing the partner ecosystem which drives leads and integrates complementary services. For a deeper dive into its financial structure, consider Breaking Down BigCommerce Holdings, Inc. (BIGC) Financial Health: Key Insights for Investors. The company processes substantial Gross Merchandise Volume (GMV) through its platform annually.

Strategic Advantages

• Open SaaS Platform: Unlike some competitors with more closed ecosystems, its API-first approach offers extensive customization and integration capabilities, attracting businesses with specific technical requirements or those wanting greater control over their e-commerce stack.
• Headless Commerce Leadership: Provides robust tools and APIs enabling brands to separate the customer-facing front-end from the back-end commerce engine, facilitating unique, content-driven experiences across websites, mobile apps, and other digital touchpoints.
• Mid-Market and Enterprise Focus: Successfully targets larger, more complex merchants, including B2B companies, who require advanced features, scalability, and dedicated support beyond what entry-level platforms typically offer. This segment consistently drives a majority share, over 60%, of the company's ARR.
• Strong Partner Ecosystem: Leverages thousands of technology and agency partners who build apps, themes, and offer specialized services, extending the platform's functionality and market reach significantly without requiring direct development for every niche need.
• Multi-Channel Capabilities: Native integrations and tools like Feedonomics facilitate selling across diverse channels, including major marketplaces, social platforms, and physical stores, appealing to merchants seeking unified commerce operations.

BigCommerce Holdings, Inc. (BIGC) How It Makes Money

BigCommerce primarily generates revenue through recurring subscription fees for its e-commerce platform and additional services tied to customer success and transaction volume. The company operates a software-as-a-service (SaaS) model, providing online store creation tools, search engine optimization, hosting, marketing, and security features.

BigCommerce's Revenue Breakdown

Based on performance trends observed through the third quarter of 2024, the revenue streams are segmented as follows:

BigCommerce's Business Economics

The company's economic engine relies heavily on its tiered subscription plans, catering to businesses of various sizes, from small startups to large enterprises. Pricing often scales with the merchant's online sales volume (Gross Merchandise Volume or GMV), creating a natural upsell path as clients grow. This aligns the company's success with its customers' success. Partner and Services Revenue (PSR) complements subscriptions, derived mainly from revenue sharing agreements with partners (like payment processors and app developers) and fees for services such as premium themes or specialized support. Effectively managing customer acquisition cost (CAC) relative to customer lifetime value (LTV) is crucial, particularly as the company targets larger, more complex merchants who generally yield higher Annualized Recurring Revenue (ARR) and exhibit lower churn rates. These strategic choices reflect the company's operational goals, which you can explore further in the Mission Statement, Vision, & Core Values of BigCommerce Holdings, Inc. (BIGC). The focus remains on expanding ARR and improving gross margins through platform leverage and partner ecosystem growth.

BigCommerce's Financial Performance

Analyzing financial health involves looking at key metrics reported during 2024. As of the third quarter ending September 30, 2024, BigCommerce demonstrated continued growth, albeit navigating a dynamic economic landscape. Key indicators included:

• Total revenue reached approximately $80.2 million in Q3 2024, representing an 8% increase year-over-year.
• Annualized Recurring Revenue (ARR) stood at approximately $327.8 million at the end of Q3 2024, up 9% year-over-year, highlighting the strength of the subscription base.
• Non-GAAP Gross Margin remained robust at around 79.2% in Q3 2024, indicating efficient delivery of its core platform services.
• The company continued to invest in growth initiatives, resulting in a Non-GAAP Operating Loss of approximately $3.8 million for Q3 2024, showing progress towards profitability compared to prior periods.

These figures reflect a business scaling its recurring revenue base while carefully managing operational expenses towards achieving profitability.

BigCommerce Holdings, Inc. (BIGC) Market Position & Future Outlook

BigCommerce positions itself as a leading Open SaaS e-commerce platform, primarily targeting mid-market and enterprise merchants seeking flexibility and lower total cost of ownership compared to some larger competitors. Its future outlook hinges on successfully capturing more enterprise clients and expanding its B2B capabilities amidst fierce market competition, aiming for improved operating margins following a reported Non-GAAP operating loss of approximately $28.1 million for the fiscal year 2024.

Competitive Landscape

Opportunities & Challenges

Industry Position

Within the crowded e-commerce platform market, BigCommerce carves out its niche by focusing on the complex needs of mid-market and enterprise businesses, offering a more open, API-driven alternative to platforms like Shopify while aiming for a lower cost structure than traditional enterprise solutions like Adobe or Salesforce. Its strategy emphasizes flexibility and integration capabilities, appealing to merchants who have outgrown simpler platforms or seek greater control over their online presence. The company's performance, showing Annual Revenue Rate (ARR) reaching approximately $330 million by Q4 2024, reflects its traction in these segments. Understanding who invests in the company provides further context; you can learn more by Exploring BigCommerce Holdings, Inc. (BIGC) Investor Profile: Who’s Buying and Why? Its success relies heavily on differentiating its Open SaaS approach and converting larger merchants looking for scalable, customizable solutions without the lock-in often associated with monolithic platforms.