Despite recording an increase in some core financials in the third quarter, open SaaS ecommerce platform BigCommerce is cutting costs — and head count.
“As a part of our effort to drive improved results and evolve our go-to-market approach, today we announced a restructuring that affects approximately 7% of our global workforce,” chief financial officer Daniel Lenz told analysts on a Nov. 8 earnings call. “While headcount and non-headcount reductions impact all teams across the company, sales and marketing spending will see the largest impact as a result of the go-to-market improvement.”
To pay for the layoffs, BigCommerce will take a charge of approximately $5.5 million for severance payments, employee benefits and other costs related to the restructuring plan.
BigCommerce reports Q3 results
For its fiscal third quarter ended Sept. 30, BigCommerce posted revenue of $78.0 million, up 8% compared to $72.4 million the third quarter of 2022. Net loss was $20.3 million compared with $30.3 million in the prior year.
“We have seen continued tighter ecommerce order and gross merchandise volume (GMV) growth in 2023 than the pre-pandemic trend line,” CEO Brent Bellm said to analysts. “This has led to fewer orders and GMV-based pricing upgrades compared to prior years, and it has impacted partner and services revenue growth more than originally anticipated going into the year. We have also seen the effect of a tight business spending environment.”
In the quarter, BigCommerce also rolled out a B2B invoice portal for large suppliers, manufacturers, distributors, and wholesalers. The product enables B2B merchants to incorporate invoice payments into a centralized online purchasing workflow through portal access.
“The B2B edition invoice portal provides an enterprise-grade, out-of-the-box invoice payment experience,” he said.
For the fourth quarter, BigCommerce expects total revenue between $79.8 million to $83.8 million. Non-GAAP operating income is expected to be between $1.1 million to $4.1 million.
For the full year, BigCommerce expects total revenue to fall between $305.0 million and $309.0 million. It expects non-GAAP operating loss between $6.9 million and $9.9 million.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.
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