BIGC - BigCommerce stock crashes on soft sales forecast

BigCommerce ( NASDAQ: BIGC ) shares slid 17% in premarket trading on Friday after revenue projections for 2023 fell short of expectations.

For the fourth quarter reported on Thursday evening, the Texas-based ecommerce platform posted a lighter than expected loss , but came up narrowly short of sales expectations. The annual revenue run rate met expectations while the number of enterprise accounts jumped 15% year over year.

“In a challenging year for global ecommerce, BigCommerce grew faster than the broader ecommerce industry, and our Q4 results showed strong progress in both profitability and operating cash flow,” CEO Brent Bellm said. “This strong performance in a tough economy delivered our best-ever gains in market share and global presence. BigCommerce’s 2023 plan achieves profitability in Q4 and focuses our execution on ecommerce leadership in the enterprise segment.”

However, the market appeared displeased with Q1 and full year guidance for 2023.

Management forecast total revenue between $69.7M to $72.7M for the first quarter, implying a year-over-year growth rate of 6% to 10%. Analysts had anticipated a stronger $73.32M. Operating loss for the quarter is expected to be between $8.2M to $12.2M in the quarter as compared to $9.2M in Q4.

For the full year, revenue guidance also came short of consensus estimates, with management projecting between $301M and $313M against a $319.4M consensus. The company expects an operating loss between $15.7M and $22.7M in 2023.

Dig into the details of the report .

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