Why BigCommerce Stock Had a Big Drop Today
Shares of e-commerce technology company BigCommerce Holdings (NASDAQ: BIGC) ended the week on a bad note after the company reported financial results for the fourth quarter of 2022. As of 12:15 p.m. ET on Friday, BigCommerce stock was down 19%.
In the fourth quarter, BigCommerce generated revenue of $72.4 million, up 12% year over year and barely hitting the low end of management's guidance. Wall Street, however, had expected better. Management said that growth during the quarter was hurt by a shift in its sales strategy: It's focusing on landing larger enterprise e-commerce customers, which can have bigger upside, but it tends to be a slow process.
If there's a silver lining, BigCommerce is having success with enterprise customers. The company's annual revenue run-rate (ARR) ended 2022 at $312 million, up 16% year over year. Moreover, ARR from enterprise clients now accounts for 72% of the total and grew 30% year over year.
Source Fool.com
