BigCommerce recently shared its Q1 2025 financial results, and it looks like the company is in the middle of some big changes. While the overall revenue growth is pretty modest, there are some really positive signs, especially when it comes to making money and focusing on their larger clients. They’ve also brought in some new faces in leadership, which usually means they’re trying to shake things up and get things moving in a new direction. Let’s break down what these numbers mean for BigCommerce’s revenue and where they seem to be heading.
Key Takeaways
- BigCommerce’s total revenue saw a 3% increase, reaching $82.4 million in Q1 2025, matching its overall Annual Recurring Revenue (ARR) growth.
- The company is seeing stronger growth in its Enterprise segment, with Enterprise ARR up 6% to $263.8 million, now making up 75% of the total ARR.
- Profitability has improved significantly, with GAAP operating loss shrinking and non-GAAP operating income more than doubling.
- While Enterprise ARR is growing, the actual number of enterprise accounts decreased by 2%, suggesting a focus on getting more business from existing large clients rather than acquiring new ones.
- BigCommerce is guiding for continued revenue growth in Q2 and the full year 2025, though the pace of growth is not expected to dramatically accelerate.
BigCommerce Revenue Growth Analysis
BigCommerce kicked off 2025 with a modest but steady revenue increase, showing signs of progress in its strategic shift. The company reported a total revenue of $82.4 million for the first quarter, marking a 3% rise compared to the same period last year. This growth, while not explosive, reflects the ongoing transformation efforts and a focus on building a more sustainable business model. The platform’s ability to maintain growth while refining its strategy is a key takeaway from this quarter’s performance.
Q1 2025 Total Revenue Performance
In the first quarter of 2025, BigCommerce’s total revenue reached $82.4 million. This figure represents a 3% increase over the $80.4 million generated in Q1 2024. While this growth rate might seem conservative, it’s important to consider the company’s strategic pivot towards higher-value enterprise clients. This focus often means slower overall revenue expansion in the short term as the company refines its product and sales approach for these larger accounts. The platform continues to be a significant player, powering over $4.1 billion in annual e-commerce sales for many of the top online retailers.
Year-Over-Year Revenue Increase
The year-over-year revenue increase of 3% to $82.4 million in Q1 2025 indicates a stable, albeit gradual, upward trend. This consistent growth suggests that the company’s core business remains strong. For businesses looking to establish or expand their online presence, understanding the benefits of a robust e-commerce platform is key, as it can lead to reduced overhead and improved efficiency E-commerce offers significant benefits for small businesses.
Subscription Solutions Revenue Trends
Subscription solutions are the backbone of BigCommerce’s revenue, and in Q1 2025, this segment brought in $62.1 million. This was a 2% increase compared to the previous year. While the growth here is also modest, it highlights the recurring nature of the platform’s income, providing a predictable revenue stream. The company’s focus on enhancing its core platform and adding new features likely contributes to retaining and growing this subscription base.
Enterprise Account Dynamics
When we look at BigCommerce’s enterprise segment, it’s a bit of a mixed bag this quarter. While the overall revenue picture is positive, the number of enterprise accounts themselves has seen a slight dip. Specifically, the number of enterprise accounts declined by 2% year-over-year. This trend has been going on for about five quarters now, and it’s something the company is definitely keeping an eye on.
Enterprise ARR Growth and Contribution
Despite the slight decrease in the sheer number of enterprise accounts, the Annual Recurring Revenue (ARR) from these larger clients has actually shown positive movement. This suggests that the enterprise accounts that are staying with BigCommerce are either expanding their usage or that new, larger deals are being signed, even if the total count isn’t growing. It’s a sign that the value proposition for these key accounts remains strong.
Average Revenue Per Enterprise Account
This is where we see some good news. The average revenue generated per enterprise account has increased. This indicates that BigCommerce is successfully upselling or cross-selling to its existing enterprise base, or that the new enterprise clients being acquired are of higher value. It’s a positive sign for the company’s ability to grow revenue within its most significant customer relationships.
Enterprise Customer Base Trends
As mentioned, the total number of enterprise customers has seen a sequential decline for five consecutive quarters. While the company acknowledges this isn’t ideal, the focus seems to be on the quality and value of the accounts rather than just the quantity.
The company is actively working on strategies to reverse this trend, focusing on attracting and retaining high-value enterprise clients through enhanced product offerings and a more targeted sales approach.
BigCommerce is also making strides in its B2B and enterprise offerings, with new features like Configure-Price-Quote (CPQ) and advanced permissioning aimed at streamlining sales processes for these clients. They’ve also been working on improving the developer experience, which indirectly supports the enterprise segment by allowing for more robust integrations and custom solutions. You can see some of the product updates on the BigCommerce website.
Profitability and Financial Health
BigCommerce is showing some real movement on the financial front this quarter, which is pretty interesting given all the changes happening. The company managed to significantly shrink its operating loss on a GAAP basis, which is a big deal. They’re really pushing to get things in the black, and it looks like those efforts are starting to pay off.
GAAP Operating Loss Reduction
The GAAP operating loss saw a pretty dramatic drop, coming in at $2.4 million for Q1 2025. That’s a huge improvement compared to the $8.2 million loss we saw in the same quarter last year. It seems like the company is getting a better handle on its expenses, which is always a good sign for long-term stability.
Non-GAAP Operating Income Improvement
When you look at the non-GAAP numbers, which strip out some of those one-time or non-cash items, the picture gets even brighter. Non-GAAP operating income more than doubled, reaching $7.6 million. This really highlights the underlying operational improvements the business is making. It suggests that the core business operations are becoming more efficient and profitable.
Adjusted EBITDA Growth
Another key metric, Adjusted EBITDA, also showed strong growth, climbing to $8.8 million from $4.2 million in the prior year’s first quarter. This metric is often used to gauge a company’s overall financial health and its ability to generate cash from its operations. The substantial increase here indicates a healthier financial profile and better cash-generating capabilities. It’s good to see this kind of progress, especially when you’re trying to build out a more robust ecommerce platform for businesses, like what BigCommerce offers to help merchants maximize revenue.
The focus on improving profitability alongside revenue growth is a delicate balancing act. It appears BigCommerce is making headway in making its operations more efficient, which is a positive sign for its financial future.
Geographic Revenue Performance
When we look at where BigCommerce’s revenue is coming from, things are a bit mixed across different regions in Q1 2025. It’s not all smooth sailing, but there are some bright spots.
EMEA Revenue Expansion
The Europe, Middle East, and Africa (EMEA) region showed some solid growth. Revenue from EMEA increased by 8% compared to the same period last year. This expansion suggests that BigCommerce’s platform is gaining traction with businesses in these markets. It’s good to see this positive trend in a key international area.
APAC Revenue Decline
On the flip side, the Asia-Pacific (APAC) region experienced a decline. Revenue in APAC was down by 5% year-over-year. This is a bit of a head-scratcher, especially given the general growth in e-commerce in many APAC countries. We’ll need to keep an eye on this to see if it’s a temporary dip or something more persistent. Understanding the reasons behind this slowdown will be important for future strategy.
US Market Performance
Back home, the United States market saw a modest increase in revenue. The US market grew by 2% compared to Q1 2024. While not as strong as the EMEA growth, it’s still positive movement in BigCommerce’s largest market. This steady performance in the US is a good foundation, even as other regions show different trends. The company reported total revenue of $82.4 million for the quarter, with the US contributing the largest share, as expected. You can see a breakdown of the revenue by region below:
| Region | Q1 2025 Revenue | Q1 2024 Revenue | Change |
|---|---|---|---|
| United States | $62,621,000 | $61,138,000 | +2% |
| EMEA | $9,965,000 | $9,192,000 | +8% |
| APAC | $5,925,000 | $6,254,000 | -5% |
| Rest of World | $3,859,000 | $3,776,000 | +2% |
| Total | $82,370,000 | $80,360,000 | +3% |
The mixed performance across geographies highlights the varying economic conditions and competitive landscapes in different parts of the world. BigCommerce’s ability to adapt its strategies to each market will be key to its overall success.
Strategic Initiatives and Leadership
BigCommerce has been making some significant moves lately, focusing on strengthening its leadership team and refining its product strategy. The company is really doubling down on its B2B and enterprise offerings, which seems like a smart play given the market trends. They’ve brought in some serious talent to steer the ship, aiming to boost innovation and product development.
Impact of Leadership Overhaul
There have been some key changes at the top. Following the departure of the former CTO, the Senior Vice President of Engineering has taken over full leadership of the engineering department. Plus, they recently welcomed a new Chief Product Officer who has a solid background in product strategy from big tech companies like Google and PayPal. These appointments are meant to really sharpen the company’s focus on product and innovation, and it feels like they’ve got the right people in place now to guide the company forward.
Product Enhancements and Partnerships
BigCommerce is also investing in new initiatives, like a BigCommerce payment solution and self-serve versions of tools like Feedonomics and MakeSwift. They’re also building bundled solutions with partners to make it easier for customers to set up and use different technologies. These moves are all about expanding their reach within their existing customer base and making their platform even more attractive. It’s interesting to see how they’re trying to simplify things for merchants.
Focus on B2B and Enterprise Offerings
The company’s sales organization has been restructured to better serve its B2B, B2C, and small business clients. They’ve also been busy expanding their sales team, which is now largely complete. The early signs from this sales capacity increase are looking good, especially in the B2B sector, where they’ve seen consistent momentum. They’ve even brought on some big names like Super Feet and Van de Velde packaging, which really shows their commitment to the B2B space. It’s clear they see a lot of potential in serving larger businesses, and their recent growth in the U.S. market, which saw over 300% year-over-year growth in the first half of 2025, really backs that up. This expansion highlights their increasing presence and success in attracting larger businesses, and you can check out more about their U.S. market performance here.
The company is actively working to accelerate revenue growth profitably, which is a major goal for 2025. They’re making disciplined operational choices and transforming how they go to market. It’s a lot to manage, especially with the current economic climate, but they seem focused on what they can control and are seeing positive early indicators from the actions they’ve taken.
Future Outlook and Guidance
Looking ahead, BigCommerce is setting its sights on continued growth and strategic expansion. The company is navigating a dynamic economic landscape, which means its guidance reflects both the underlying strength observed and potential external headwinds. The focus remains on profitable revenue acceleration and disciplined execution.
Q2 2025 Revenue Expectations
For the second quarter of 2025, BigCommerce anticipates revenue to fall between $82.5 million and $83.5 million. This projection takes into account the ongoing efforts to transform the business and the current market conditions. The company is also managing its operational expenses carefully to maintain flexibility.
Full-Year 2025 Revenue Projections
BigCommerce is widening its revenue guidance range for the full year 2025 to $351 million to $351.1 million. This adjustment acknowledges the positive momentum seen in the business, particularly with the sales team expansion, while also accounting for potential macroeconomic uncertainties. The company is committed to operational discipline, balancing spending to protect margins and retain the ability to reinvest in growth opportunities.
Growth Reacceleration Strategy
BigCommerce’s strategy for reaccelerating growth is multi-faceted:
- Sales Team Expansion: The company has substantially completed hiring to double its quota-carrying sales capacity, with early indicators showing improved pipeline conversion rates, especially in B2B.
- Product Enhancements: Key initiatives include launching a BigCommerce payment solution, offering self-serve versions of Feedonomics and MakeSwift to existing customers, and building bundled solutions with partners.
- B2B and Enterprise Focus: The sales organization is now structured around B2B, B2C, and small business offerings, with a particular emphasis on capturing more market share in the B2B segment.
- AI Integration: The company sees significant opportunities in leveraging Artificial Intelligence (AI) within commerce and plans to invest in this area to drive future growth.
The company’s pricing model, based on order volume rather than Gross Merchandise Volume (GMV) percentage, offers a more predictable revenue stream and shields it from sudden shifts in consumer spending. While recessionary pressures could eventually lead to some downgrade pressure, this model provides a degree of revenue durability. Investing in ecommerce is a smart choice due to its vast market size, potential for sales growth, and increased reach. Investing in ecommerce
BigCommerce is actively managing its financial health, aiming to reduce GAAP operating loss and improve non-GAAP operating income. The company’s approach to guidance reflects a pragmatic view of the current economic climate, balancing optimism about internal progress with caution regarding external factors. The goal is to achieve profitable growth by executing its strategic priorities and adapting to market changes.
Looking Ahead: BigCommerce’s Path Forward
So, BigCommerce is definitely in a period of change. While the overall revenue growth is pretty modest at 3%, it’s good to see they’re making more money from their bigger clients, the enterprise ones. That focus seems to be paying off, even if they have fewer of those big accounts now. The company also managed to cut its losses and boost profits, which is a really positive sign. With new leaders in place and a focus on improving their B2B and Catalyst products, they seem to be trying to get things moving in the right direction. It’s not a huge jump in sales yet, and they’re still guiding for similar growth this year, but the improvements in profitability and the strategic shifts suggest they’re working on building a stronger foundation for the future. We’ll have to keep an eye on how these changes play out in the coming quarters.
Frequently Asked Questions
How much money did BigCommerce make in the first quarter of 2025?
In the first quarter of 2025, BigCommerce’s total sales were $82.4 million. This is a small increase of 3% compared to the same time last year.
How did BigCommerce’s sales from big clients change in Q1 2025?
BigCommerce’s sales from its biggest customers, called Enterprise accounts, grew by 6% to reach $263.8 million. This means these big accounts now make up 75% of all the money BigCommerce gets from its customers on a yearly basis.
Are more or fewer big companies using BigCommerce, and are they spending more?
The company is making more money from each of its large customers, with the average sales per enterprise account going up by 9% to $45,290. However, the total number of these big customers went down by 2%.
Is BigCommerce making more profit?
BigCommerce is becoming more profitable. They lost less money overall, and their profits from regular business operations (not including special costs) more than doubled. Their adjusted earnings also grew a lot.
How did BigCommerce perform in different parts of the world?
Sales in Europe, the Middle East, and Africa (EMEA) went up by 8%. However, sales in the Asia-Pacific (APAC) region dropped by 5%, and sales in the U.S. market saw a small increase of 2%.
What are BigCommerce’s sales predictions for the rest of 2025?
BigCommerce expects to make between $82.5 million and $83.5 million in sales for the second quarter of 2025. For the entire year 2025, they are predicting sales to be between $335.1 million and $351.1 million.