Bigcommerce Holdings Inc (BIGC)

History and Background

Bigcommerce was founded in 2009 in Sydney, Australia, by Eddie Machaalani and Mitchell Harper. Initially named Revolution Web, it rebranded to Bigcommerce and established its headquarters in Austin, Texas. Bigcommerce's evolution has focused on providing scalable e-commerce solutions to growing businesses.

Core Business Areas

• SaaS Ecommerce Platform: Bigcommerce's core business revolves around providing a SaaS e-commerce platform. This includes storefront design, product catalog management, order processing, marketing tools, and analytics. The platform is designed for businesses of all sizes, from small startups to large enterprises.
• Open SaaS Platform: Bigcommerce provides an open SaaS platform to provide businesses with flexibility with their tech stack.
• Payments and Shipping: Bigcommerce integrates with various payment gateways and shipping providers to streamline transactions and fulfillment processes for merchants.
• App Marketplace: The Bigcommerce app marketplace connects merchants with third-party apps and integrations to extend the platform's functionality.

Leadership and Structure

Bigcommerce is led by CEO Barry Judge. The company has a board of directors and is structured with various departments covering engineering, product management, marketing, sales, and customer support.

Key Offerings

• Bigcommerce Platform: Bigcommerce's main offering is its SaaS e-commerce platform, which allows merchants to build and manage online stores. The exact market share data is difficult to pinpoint due to varying reports and classification of competitors, but Bigcommerce is considered a major player in the mid-market to enterprise segment. Key competitors include Shopify (SHOP), Adobe Commerce (ADBE), and Salesforce Commerce Cloud (CRM). Revenue from the platform accounts for majority of their revenue.
• Enterprise Solutions: Bigcommerce offers customized e-commerce solutions tailored to the needs of large enterprises. These solutions may include dedicated support, advanced features, and integrations with other enterprise systems. Bigcommerce faces competition from Salesforce Commerce Cloud (CRM) and Adobe Commerce (ADBE) in the enterprise e-commerce sector. The solution accounts for a minority of their revenue but provides a large portion of their overall growth.

Industry Overview

The e-commerce platform industry is experiencing rapid growth driven by the increasing adoption of online shopping and the rise of omnichannel retail. Key trends include personalization, mobile commerce, and the integration of AI and machine learning to improve customer experiences.

Positioning

Bigcommerce positions itself as a scalable and flexible platform for growing businesses, particularly those in the mid-market to enterprise segment. Its competitive advantages include its open SaaS architecture, robust API, and focus on complex e-commerce requirements.

Total Addressable Market (TAM)

Estimates for the global e-commerce platform market vary but are generally in the hundreds of billions of dollars. Bigcommerce is targeting the mid-market to enterprise segment, which represents a significant portion of the total market. Bigcommerce aims to expand its share within this segment by offering differentiated solutions and focusing on customer success.

Key Competitors

• SHOP
• ADBE
• CRM
• WIX
• SQSP

Competitive Landscape

Bigcommerce offers robust scalability for high-volume businesses, but often loses to Shopify because of the ease of use and large App marketplace that Shopify has.

Feedonomics

• Year: 2021
• Acquisition Price (USD millions): 145
• Strategic Rationale: Expand Bigcommerce's omnichannel capabilities and enhance its offerings for merchants selling across multiple channels.

Historical Growth: Bigcommerce has experienced significant revenue growth in recent years, driven by the increasing adoption of its platform. This growth has been fueled by the rise of e-commerce and the company's focus on the mid-market to enterprise segment.

Future Projections: Analysts project continued revenue growth for Bigcommerce in the coming years. The company is expected to benefit from the ongoing expansion of e-commerce and its investments in new features and international markets.

Recent Initiatives: Recent initiatives include expanding its international presence, launching new features for enterprise customers, and partnering with technology providers to enhance its platform.

Bigcommerce has positioned itself as a strong player in the e-commerce market, however, faces intense competition with established players like Shopify and Adobe. The company's open SaaS architecture gives it a competitive edge when competing for the mid market to enterprise segment. Bigcommerce has demonstrated revenue growth, but is not consistently profitable and will need to keep an eye on profitability. Bigcommerce will have to successfully innovate and invest in future growth, as well as, consider strategic acquisitions to maintain its strong position.

• SHOP
• ADBE
• ORCL
• INTU
• AVLR
• MRKT
• HUBS
• SEMR
• GDDY
• QUAD

Data Sources:

• Company SEC Filings (10-K, 10-Q), Analyst Reports, Market Research Reports, Company Press Releases

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market data and financial metrics are subject to change. Please conduct your own research before making any investment decisions.