Wall Street and analysts reacted quickly to the new CEO change at BigCommerce Holdings Inc.
On Oct. 2, BigCommerce announced the departure of Brent Bellm, who had served as both CEO and chairman of the board. Bellm’s exit was effective immediately. The company has since appointed Travis Hess, already its president, as the new CEO.
Bellm, who led the company for nine years and played a pivotal role in taking BigCommerce public, will receive a separation package, including 12 months of salary and health care coverage. In 2023, his total compensation amounted to $4.65 million, including a base salary of $486,538, according to the company’s most recent proxy filing with the U.S. Securities and Exchange Commission (SEC).
The SEC filing announcing Bellm’s departure confirmed that his exit was not due to any dispute with the company. He will remain as a non-executive employee and special advisor to the CEO and executive chair until Oct. 18.
BigCommerce’s decision to make Travis Hess the new CEO
Wall Street analysts suggest that concerns over BigCommerce’s valuation and long-term growth potential may have contributed to Bellm’s abrupt departure.
“Ecommerce stocks have been struggling, and BigCommerce is among the notable losers,” noted Gary Alexander, an analyst on SeekingAlpha.com.
The company’s stock has lost 30% of its value this year, with declines accelerating after disappointing Q2 results.
Under Bellm’s leadership, BigCommerce posted modest revenue growth in Q2 2024, with revenue rising 8% year over year to $81.8 million. However, the company reported a net loss of $11.25 million. That’s a slight improvement from the $19.06 million loss in the same period the previous year. Enterprise customer growth remained weak, increasing by just 1% to 5,961 customers.
Revenue growth at BigCommerce
Analysts have expressed concerns about the company’s slowing revenue growth, noting that until recently, BigCommerce had seen a decline in growth every quarter since early 2022.
“While poor macroeconomic trends have played a role, BigCommerce’s non-transactional revenue and subscription ARR should have been more resilient,” Alexander wrote. “The company’s recent increase in pricing for small businesses has led to declining ARR in that segment.”
Despite these concerns, analysts have generally welcomed the promotion of the new CEO. Hess, who joined as president in May 2024, brings a wealth of leadership experience from global commerce agencies and consultancies. Prior to BigCommerce, Hess held key roles at Accenture, where he led the company’s direct-to-consumer commerce strategy and its global go-to-market approach. He also oversaw Accenture’s partnership with Shopify and served on several advisory boards for Shopify, Klaviyo, SAP/Hybris and Rackspace. Hess’s previous roles include executive vice president at The Stable and CEO of BVA, both prominent omnichannel commerce agencies.
Analysts expect Hess’s extensive IT consulting background to bring significant changes to BigCommerce. However, the company still faces challenges in regaining investor confidence amid intense competition and unfavorable economic conditions, as noted by GuruFocus.com. BigCommerce is expected to report its Q3 results soon.
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