BigCommerce (NASDAQ: BIGC), a prominent e-commerce software provider, has disclosed its Q3 FY2023 earnings, reporting a slight shortfall on revenue projections. The company generated $78 million in contrast to the anticipated $78.1 million. However, the Q4 revenue guidance of $81.8 million slightly exceeded the market's expectations. BigCommerce also reported a non-GAAP profit of $0.01 per share, marking an improvement from a loss of $0.41 per share in Q3 FY2022.
Today, CEO Brent Bellm highlighted the company's progress toward long-term growth and profitability in Q3. He pointed out a GAAP gross margin of 75.6%, consistent with the same quarter last year, and a reduced cash burn by 37% YoY to $32.5 million.
BigCommerce, originally established in Sydney in 2009, has seen its revenue grow from $59.3 million in Q3 FY2021 to $78 million in Q3 FY2023. Nevertheless, growth slowed this quarter with an increase of just $2.6 million compared to a larger increase of $3.7 million in Q2 2023.
The company forecasts a Q4 revenue growth of 12.9% YoY to $81.8 million, an improvement on the 11.6% YoY increase recorded in Q3 FY2022. Despite a negative free cash flow of $32.5 million and a total cash burn of $44.3 million over the past year, BigCommerce remains optimistic about its future. With a market capitalization of $753.6 million and over $69.8 million in cash on hand, the company is able to continue prioritizing growth over profitability.
In response to the Q3 results, BigCommerce announced a restructuring plan that will reduce its workforce by approximately 7 percent. This news led to a 6% drop in the company's stock price to $9.4 per share.
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