Latest news with #BIGC
Yahoo
13-05-2025
- Business
- Yahoo
3 Stocks Under $10 with Bad Fundamentals
Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices. The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here are three stocks under $10 to swipe left on and some alternatives you should look into instead. Share Price: $5.24 Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores. Why Do We Pass on BIGC? ARR growth averaged a weak 4% over the last year, suggesting that competition is pulling some attention away from its software Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its three-year trend Poor expense management has led to operating losses BigCommerce's stock price of $5.24 implies a valuation ratio of 1.2x forward price-to-sales. If you're considering BIGC for your portfolio, see our FREE research report to learn more. Share Price: $4.62 Open around the clock, Denny's (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare. Why Are We Out on DENN? Disappointing same-store sales over the past two years show customers aren't responding well to its menu offerings and dining experience Free cash flow margin shrank by 9 percentage points over the last year, suggesting the company is consuming more capital to stay competitive High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate At $4.62 per share, Denny's trades at 8.9x forward P/E. Check out our free in-depth research report to learn more about why DENN doesn't pass our bar. Share Price: $11.02 Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment. Why Do We Think MTW Will Underperform? Demand cratered as it couldn't win new orders over the past two years, leading to an average 12.5% decline in its backlog Incremental sales over the last five years were much less profitable as its earnings per share fell by 42.3% annually while its revenue grew Underwhelming 1.5% return on capital reflects management's difficulties in finding profitable growth opportunities Manitowoc is trading at $11.02 per share, or 14.7x forward P/E. To fully understand why you should be careful with MTW, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
Washington Post
08-05-2025
- Business
- Washington Post
BigCommerce: Q1 Earnings Snapshot
AUSTIN, Texas — AUSTIN, Texas — BigCommerce Holdings, Inc. (BIGC) on Thursday reported a loss of $353,000 in its first quarter. The Austin, Texas-based company said it had a loss of less than 1 cent on a per-share basis. Earnings, adjusted for one-time gains and costs, came to 7 cents per share.
Yahoo
24-04-2025
- Business
- Yahoo
BigCommerce (BIGC): Buy, Sell, or Hold Post Q4 Earnings?
BigCommerce has been treading water for the past six months, recording a small loss of 2.3% while holding steady at $5.20. Is there a buying opportunity in BigCommerce, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. We're cautious about BigCommerce. Here are three reasons why there are better opportunities than BIGC and a stock we'd rather own. Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. BigCommerce's ARR came in at $349.6 million in Q4, and over the last four quarters, its year-on-year growth averaged 5.1%. This performance was underwhelming and suggests that increasing competition is causing challenges in securing longer-term commitments. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect BigCommerce's revenue to rise by 3.5%, a deceleration versus its 14.8% annualized growth for the past three years. This projection is underwhelming and implies its products and services will face some demand challenges. Many software businesses adjust their profits for stock-based compensation (SBC), but we prioritize GAAP operating margin because SBC is a real expense used to attract and retain engineering and sales talent. This metric shows how much revenue remains after accounting for all core expenses – everything from the cost of goods sold to sales and R&D. Although BigCommerce broke even this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 12.5% over the last year. Unprofitable software companies require extra attention because they spend heaps of money to capture market share. As seen in its historically underwhelming revenue performance, this strategy hasn't worked so far, and it's unclear what would happen if BigCommerce reeled back its investments. Wall Street seems to think it will face some obstacles, and we tend to agree. BigCommerce isn't a terrible business, but it isn't one of our picks. That said, the stock currently trades at 1.2× forward price-to-sales (or $5.20 per share). This valuation is reasonable, but the company's shakier fundamentals present too much downside risk. We're fairly confident there are better stocks to buy right now. We'd suggest looking at one of our top software and edge computing picks. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
BigCommerce Holdings Inc (BIGC) Q4 2024 Earnings Call Highlights: Strategic Leadership and ...
Revenue: $333 million for 2024, up 8% year-over-year; Q4 revenue of $87 million, up 3% year-over-year. Non-GAAP Operating Income: Exceeded $19 million for 2024, a $25 million improvement over 2023; $10 million in Q4 2024. Non-GAAP Operating Margin: Expanded by 767 basis points in 2024; nearly 6% for the year. Operating Cash Flow: $26 million for 2024, a $50 million improvement from 2023; $12 million in Q4 2024. Annual Revenue Run Rate (ARR): Nearly $350 million, a 4% increase year-over-year. Enterprise ARR: Grew 7% to $262 million, representing 75% of total company ARR. Non-GAAP Sales and Marketing Expenses: 36% of revenue, improved from 41% in 2023. Net Debt: Approximately $28 million after repurchasing convertible notes. 2025 Revenue Guidance: $342.1 million to $350.1 million. 2025 Non-GAAP Operating Income Guidance: $20 million to $24 million. Warning! GuruFocus has detected 3 Warning Signs with BIGC. Release Date: February 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BigCommerce Holdings Inc (NASDAQ:BIGC) achieved a significant improvement in non-GAAP operating income, exceeding $19 million, which is a $25 million improvement over 2023. The company expanded its non-GAAP operating margin by 767 basis points and generated $26 million in operating cash flow, marking a $50 million improvement from the previous year. BigCommerce Holdings Inc (NASDAQ:BIGC) successfully reduced ineffective sales and marketing spend and decreased headcount by approximately 10%, contributing to improved financial performance. The company has recruited top leaders with expertise in commerce, including a new Chief Marketing Officer and Chief Revenue Officer, to drive the next phase of growth. BigCommerce Holdings Inc (NASDAQ:BIGC) launched Catalyst, an accelerated reference architecture, which has received positive feedback for its cost, time, and complexity benefits in composable architectures. BigCommerce Holdings Inc (NASDAQ:BIGC) did not achieve its revenue growth targets for 2024, with revenue increasing only 8% year-over-year to $333 million. Net revenue retention for enterprise accounts finished at 99%, which is below past performance and the company's expectations. Non-Enterprise ARR declined by 4% to $88 million, indicating challenges in the small business segment. The company is taking a conservative stance on growth projections for 2025, expecting mid-single-digit growth rates, reflecting macroeconomic uncertainties. Despite improvements, the company acknowledges that transformations take time, and early 2025 growth is expected to mirror Q4 2024 as transformation actions take root. Q: What are the key performance indicators (KPIs) to gauge the success of BigCommerce's new leadership and strategy? A: Travis Hess, CEO, mentioned that the leading indicator will be the pipeline and its quality year-over-year and quarter-over-quarter. They expect improved bookings by mid-year, with external messaging changes starting in mid-March to accelerate pipeline growth. Q: How does BigCommerce plan to achieve further operating margin expansion in 2025? A: Daniel Lentz, CFO, stated that the company does not need material revenue growth beyond current guidance to achieve margin expansion. They plan to reinvest in growth areas with strong ROI while maintaining a balance between margin expansion and revenue growth acceleration. Q: What is the strategy behind doubling the sales team by mid-2025, and how does it impact pipeline creation and conversion? A: Travis Hess, CEO, explained that the sales team expansion is fully loaded to drive efficacy in the second half of the year. The majority of resources were added by the end of Q4, with some specific roles still being recruited. The aim is to build momentum and achieve a strong rule of 40 profile by year-end. Q: How is BigCommerce engaging with partners following leadership changes, and what are partners asking for? A: Travis Hess, CEO, noted that partner engagement has been positive, with a focus on composability and making third-party capabilities more consumable. The company is concentrating on deepening relationships with select partners to enhance strategic partnerships and drive growth. Q: What are the expectations for non-enterprise ARR, and how does it fit into the overall growth strategy? A: Daniel Lentz, CFO, expects the non-enterprise segment to be relatively flat for the year. The focus remains on moving upmarket with enterprise accounts, but there is room to stabilize and grow the small business segment over time, leveraging products like self-serve Feedonomics and Makeswift. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
