BIGC - BigCommerce: Tough Road To Profitability

• While the company had robust average revenue growth (34%) in the past 3 years, we expect it to remain unprofitable with a -8% net margin by 2026 with high costs.
• Despite its low capex requirements of 2.8% of revenue, we do not see the company generating positive free cash flows in our forecast at -13.97% by 2026.
• While larger competitors are profitable such as Shopify, its scale is tiny in comparison with Shopify's revenues which are more than 20x greater than the company.
• However, as the stock had declined by 73% in the past one year, it has an upside of 68% based on analyst consensus.

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