BIGC - BigCommerce stock plunges 26% after lower margins widen losses in third quarter

• BigCommerce ( NASDAQ: BIGC ) shares fell sharply on Friday after the third quarter earnings showed double-digit loss margins.
• The Texas-based SaaS ecommerce company posted revenue of $72.39M, notching growth of 22.1% year-over-year. However, adjusted gross margin contracted to 77% from 80% in Q3 2021.
• Revenue by segment: Subscription revenue, $53.2M (+26% Y/Y); and Partner and services revenue, $19.2M (+12% Y/Y).
• Total annual revenue run-rate (ARR) stood at $305.3M at the quarter end, reflecting an increase of 20% from a year ago. Subscription ARR rose 21% year-over-year.
• Revenue in the Americas grew by 23%, in EMEA increased by 31% and in APAC grew by 2% Y/Y.
• The company posted 5,560 number of enterprise accounts, up 16% compared to last year quarter.
• Adjusted EBITDA was ($10.9)M, compared to ($3.1)M in Q3 2021. Adjusted EBITDA margin is posted at -15.1% vs. -5.2% a year ago.
• Non-GAAP EPS was -$0.15.
• BigCommerce ended the quarter with cash, cash equivalents and marketable securities of $308.1M as at the end of the quarter.
• Q4 2022 Guidance: Total revenue is forecasted between $72.4M to $74.2M, implying an organic year-over-year growth rate of 12% to 14% with revenue from Feedonomics in the base period. That compares to the consensus of $77.45M .
• Non-GAAP operating loss is expected to be between $12.3M to $14.3M.
• FY 2022 Guidance: Revenue is estimated to range between $279.1M - $280.9M, translating into a year-over-year growth rate of 27% and 28%, vs. consensus of $279.98M.
• Non-GAAP operating loss is anticipated between $49.9M and $51.9M
• BIGC shares are down 26% at the early trading session on Friday.

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