In second quarter financial results announced Thursday (Aug. 3), BigCommerce said it reached profitability on an adjusted pretax basis in June, while delivering positive free cash flow of about $14 million for the first time in Q2.
“These milestones are starting points only,” BigCommerce CEO Brent Bellm said on a call with investors and analysts. “We have a long way to go to reach our ambitious goals in terms of improvement in non-GAAP operating margin compared to Q2 2022 and significant improvement in cash flow generation as well.”
Despite a challenging macroeconomic climate, the open software-as-a-service (SaaS) eCommerce platform for B2C and B2B brands reported total revenue surpassing $75 million and subscription revenue growing by 10% year over year (YoY). Additionally, partner and services revenue saw a 14% increase YoY.
To meet the needs of large enterprise merchants, the firm, which has said over 20 AI applications in its apps marketplace, is using Feedonomics — a feed management tool provider it acquired in 2021 — AI technology to improve omnichannel capabilities such as conversion, return on ad spend, and revenue, while driving merchant growth and return on investment through advertising and marketplace channels.
“Other competitors offer omnichannel connectivity, but connectivity alone is not enough. Connectivity and data quality together drive results for merchants, and Feedonomics’ platform-agnostic AI-driven data feed optimization capabilities deliver one of the best solutions in the world,” Bellm said on the call.
BigCommerce is also leveraging Google Cloud’s AI technologies to add AI-powered features to its platform, PYMNTS reported last month.
With these additions, enterprise merchants are expected to gain the potential to improve their operational efficiencies, enhance the customer experience and drive more sales.
On the expansion front, BigCommerce said it has established a sales and marketing presence in 12 new countries in the last two years, with a particular focus on the U.K. and EMEA region more broadly.
To support their continued growth and expansion, the eCommerce software platform operator announced additions to the leadership team: the appointment of Steven Chung as company president, overseeing the sales, marketing, and services teams, and Daniel Lentz as company CFO.