In some ways, BigCommerce is a bit like the Maytag Repairman of eCommerce. Not exciting on the outside, but dependable SaaS on the inside. In other ways, BigCommerce is like the Rodney Dangerfield of eCommerce “Gets No Respect”. A Solid SaaS platform that did not capture the zeitgeist like Shopify.

BigCommerce has had two issues.

One, they are not widely known. They still are not even included in many RFPs except in certain segments. This is a problem and an opportunity they seem to recognize. It’s encouraging to hear Brent talking about turning off SMB marketing and activating field marketing and events for “Enterprise” customers.

Two, they are under-monetized. In the land of exciting business models and attach rates of their competition, BigCommerce is primarily a simple SaaS Enterprise play. So 2000s right?

In the end, the best play for BigCommerce is a new acquirer, which I will not speculate on here. Still, private equity is the easiest bet to make, given the large number of growing, slightly unprofitable, high gross margin, SaaS Enterprise players who have been acquired in the last 2 years: Avalara and Zendesk to name only two, there are more.

It’s not required, mind you, but it would accelerate their trajectory.

From a results point of view, there is a lot to like in BigCommerce’s earnings.

2023 Q1:

• The company remains focused on raising is ARPA, up 11% year over year to $39k. This is a healthy raise from its previous $30k-$33k in the past, and indicates that management seems to understand the levers it has to improve this.

• Total revenue was $71.8 million, up 9% compared to the first quarter of 2022. Pretty steady.

• Increasing Gross Margins. GAAP gross margin was 76%, compared to 74% in the first quarter of 2022. Non-GAAP gross margin was 77%, compared to 75% in the first quarter of 2022.

• Feedonomics is a good play for BigCommerce. It’s needed functionality if you are going to be merchant-centric, and it’s not easy to find reliable Enterprise partners (outside of ChannelAdvisor). This is one area BigCommerce outshines Shopify here: a connection to Amazon. How many Enterprise brands are on Amazon? Many is the answer, and a significant number are first-party merchants still. After all, if you are in big-box retail, Amazon wants you in first-party more often than not. Having spent a career at ChannelAdvisor, it’s not an easy business. But it is essential with the changes of channels. (Shopify the mid-market and Enterprise player will need that Amazon connection - an acquisition could be possible, but they are speaking with Buy With Prime too).

As part of a larger entity with more resources, the company could accelerate. It has a narrow focus which seems to be narrowing even further. With some marketing help and additional resources aand talent, it could be even better.