bigc-10q_20200930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 10-Q

 

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________ to __________

Commission File Number: 001-39423

 

 

BigCommerce Holdings, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

46-2707656

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

11305 Four Points Drive

Building II, 3rd Floor

Austin, Texas

78726

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (512) 865-4500

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

    Series 1 common stock, $0.0001 par value per share

 

BIGC

 

The Nasdaq Global Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  

As of September 30, 2020, the registrant had 62,756,186 shares of Series 1 common stock, $0.0001 par value per share and 5,050,555 shares of Series 2 common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Index to Financial Statements

2

 

Condensed Consolidated Balance Sheets

3

 

Condensed Consolidated Statements of Operations

4

 

Condensed Consolidated Statements of Comprehensive Loss

5

 

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

6

 

Condensed Consolidated Statements of Cash Flows

8

 

Notes to Condensed Consolidated Financial Statements

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

39

Item 4.

Controls and Procedures

40

PART II.

OTHER INFORMATION

41

Item 1.

Legal Proceedings

41

Item 1A.

Risk Factors

41

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

66

Item 3.

Defaults Upon Senior Securities

67

Item 4.

Mine Safety Disclosures

67

Item 5.

Other Information

67

Item 6.

Exhibits

67

Signatures

69

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

 

Index to Financial Statements

BigCommerce Holdings, Inc.

 

Consolidated Financial Statements

 

Condensed Consolidated Balance Sheets

 

Condensed Consolidated Statements of Operations

 

Condensed Consolidated Statements of Comprehensive Loss

 

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

 

Condensed Consolidated Statements of Cash Flows

 

Notes to the Condensed Consolidated Financial Statements

 

 

 

2


Table of Contents

 

 

BigCommerce Holdings, Inc.

Consolidated Balance Sheets

(Unaudited, in thousands, except per share amounts)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

178,846

 

 

$

7,795

 

Restricted cash

 

 

1,133

 

 

 

1,355

 

Accounts receivable, net

 

 

21,458

 

 

 

15,548

 

Prepaid expenses and other assets

 

 

9,259

 

 

 

5,296

 

Deferred commissions

 

 

2,224

 

 

 

1,677

 

Total current assets

 

 

212,920

 

 

 

31,671

 

Property and equipment, net

 

 

7,242

 

 

 

8,241

 

Right-of-use-assets

 

 

12,345

 

 

 

14,065

 

Deferred commissions, net of current portion

 

 

2,995

 

 

 

2,087

 

Total assets

 

$

235,502

 

 

$

56,064

 

Liabilities, convertible preferred stock, and stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,566

 

 

$

3,881

 

Accrued liabilities

 

 

2,584

 

 

 

5,849

 

Deferred revenue

 

 

11,842

 

 

 

9,399

 

Current portion of long-term debt

 

 

11,895

 

 

 

2,363

 

Current portion of operating lease liabilities

 

 

3,074

 

 

 

2,718

 

Other current liabilities

 

 

17,516

 

 

 

9,704

 

Total current liabilities

 

 

52,477

 

 

 

33,914

 

Deferred revenue, net of current portion

 

 

1,127

 

 

 

1,492

 

Long-term debt, net of current portion

 

 

10,000

 

 

 

38,502

 

Operating lease liabilities, net of current portion

 

 

13,400

 

 

 

15,705

 

Total liabilities

 

 

77,004

 

 

 

89,613

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

Convertible preferred stock

 

 

 

 

 

 

 

 

Convertible preferred stock, $0.0001 par value; 10,000 and 102,030 shares authorized

at September 30, 2020 and December 31, 2019, respectively; 0 shares and 102,030 shares

issued and outstanding, at September 30, 2020 and December 31, 2019, respectively.

 

 

 

 

 

223,754

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value; 500,000 shares Series 1 and, 5,051 shares Series 2

authorized at September 30, 2020 and 200,000 shares voting and 30,000 shares of

non-voting authorized at December 31, 2019; 62,757, and 18,544 shares Series 1 and

voting issued and, outstanding at September 30, 2020 and December 31, 2019, respectively,

and 5,051 and 0 shares Series 2 and non-voting issued and, outstanding at

September 30, 2020, and December 31, 2019, respectively.

 

 

7

 

 

 

2

 

Additional paid-in capital

 

 

457,681

 

 

 

17,244

 

Accumulated deficit

 

 

(299,190

)

 

 

(274,549

)

Total stockholders’ equity (deficit)

 

 

158,498

 

 

 

(257,303

)

 

 

 

 

 

 

 

 

 

Total liabilities, convertible preferred stock, and stockholders’ equity (deficit)

 

$

235,502

 

 

$

56,064

 

 

The accompanying notes are an integral part of these consolidated financial statements.

3


Table of Contents

 

BigCommerce Holdings, Inc.

Consolidated Statements of Operations

(Unaudited, in thousands, except per share amounts)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

39,735

 

 

$

28,264

 

 

$

109,225

 

 

$

81,083

 

Cost of revenue

 

 

8,593

 

 

 

6,806

 

 

 

23,910

 

 

 

18,958

 

Gross profit

 

 

31,142

 

 

 

21,458

 

 

 

85,315

 

 

 

62,125

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

19,328

 

 

 

15,346

 

 

 

51,893

 

 

 

45,445

 

Research and development

 

 

12,124

 

 

 

10,862

 

 

 

34,390

 

 

 

32,162

 

General and administrative

 

 

9,745

 

 

 

5,527

 

 

 

23,925

 

 

 

15,748

 

Total operating expenses

 

 

41,197

 

 

 

31,735

 

 

 

110,208

 

 

 

93,355

 

Loss from operations

 

 

(10,055

)

 

 

(10,277

)

 

 

(24,893

)

 

 

(31,230

)

Interest income

 

 

2

 

 

 

4

 

 

 

20

 

 

 

245

 

Interest expense

 

 

(741

)

 

 

(359

)

 

 

(2,655

)

 

 

(1,129

)

Change in fair value of financial instruments

 

 

 

 

 

 

 

 

4,413

 

 

 

 

Other expense

 

 

(75

)

 

 

(86

)

 

 

(238

)

 

 

(163

)

Loss before provision for income taxes

 

 

(10,869

)

 

 

(10,718

)

 

 

(23,353

)

 

 

(32,277

)

Provision for income taxes

 

 

(14

)

 

 

7

 

 

 

6

 

 

 

21

 

Net loss

 

$

(10,855

)

 

$

(10,725

)

 

$

(23,359

)

 

$

(32,298

)

Dividends and accretion of issuance costs on Series F

   preferred stock

 

$

2,732

 

 

$

(1,865

)

 

$

(962

)

 

$

(5,417

)

Net loss attributable to common stockholders

 

$

(8,123

)

 

$

(12,590

)

 

$

(24,321

)

 

$

(37,715

)

Basic and diluted net loss per share attributable to common

   stockholders

 

$

(0.16

)

 

$

(0.70

)

 

$

(0.83

)

 

$

(2.13

)

Weighted average shares used to compute basic and diluted net

   loss per share attributable to common stockholders

 

 

49,355

 

 

 

17,959

 

 

 

29,145

 

 

 

17,681

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

4


Table of Contents

 

BigCommerce Holdings, Inc.

Consolidated Statements of Comprehensive Loss

(Unaudited, in thousands)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Net loss

 

$

(10,855

)

 

$

(10,725

)

 

$

(23,359

)

 

$

(32,298

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) on marketable debt securities

 

 

 

 

 

14

 

 

 

 

 

 

14

 

Total comprehensive loss

 

$

(10,855

)

 

$

(10,711

)

 

$

(23,359

)

 

$

(32,284

)

The accompanying notes are an integral part of these consolidated financial statements.

 

5


Table of Contents

 

BigCommerce Holdings, Inc.

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited, in thousands)

 

 

 

Convertible Preferred

Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Stockholders’

Equity

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

(Deficit)

 

Balance at December 31, 2018

 

 

102,030

 

 

$

216,446

 

 

 

 

17,445

 

 

$

2

 

 

$

13,261

 

 

$

(224,725

)

 

$

(14

)

 

$

(211,476

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

96

 

 

 

 

 

 

132

 

 

 

 

 

 

 

 

 

132

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

595

 

 

 

 

 

 

 

 

 

595

 

Accumulated dividend – Series F

 

 

 

 

 

1,736

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,736

)

 

 

 

 

 

(1,736

)

Accretion of Series F issuance costs

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,541

)

 

 

 

 

 

(10,541

)

Balance at March 31, 2019

 

 

102,030

 

 

$

218,200

 

 

 

 

17,541

 

 

$

2

 

 

$

13,970

 

 

$

(237,002

)

 

$

(14

)

 

$

(223,044

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

360

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

40

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

821

 

 

 

 

 

 

 

 

 

821

 

Accumulated dividend – Series F

 

 

 

 

 

1,780

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,780

)

 

 

 

 

 

(1,780

)

Accretion of Series F issuance costs

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,032

)

 

 

 

 

 

(11,032

)

Balance at June 30, 2019

 

 

102,030

 

 

$

219,998

 

 

 

 

17,901

 

 

$

2

 

 

$

14,813

 

 

$

(249,814

)

 

$

(14

)

 

$

(235,013

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

206

 

 

 

 

 

 

299

 

 

 

 

 

 

 

 

 

299

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

815

 

 

 

 

 

 

 

 

 

815

 

Accumulated dividend – Series F

 

 

 

 

 

1,846

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,846

)

 

 

 

 

 

(1,846

)

Unrealized gain on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

14

 

Accretion of Series F issuance costs

 

 

 

 

 

19

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

 

 

 

 

 

 

(19

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,725

)

 

 

 

 

 

(10,725

)

Balance at September 30, 2019

 

 

102,030

 

 

$

221,863

 

 

 

 

18,107

 

 

$

2

 

 

$

15,908

 

 

$

(262,385

)

 

$

 

 

$

(246,475

)

The accompanying notes are an integral part of these consolidated financial statements.    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6


Table of Contents

 

BigCommerce Holdings, Inc.

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited, in thousands)

 

 

 

Convertible Preferred

Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Stockholders’

Equity

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

(Deficit)

 

Balance at December 31, 2019

 

 

102,030

 

 

$

223,754

 

 

 

 

18,544

 

 

$

2

 

 

$

17,244

 

 

$

(274,549

)

 

$

 

 

$

(257,303

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

448

 

 

 

 

 

 

404

 

 

 

 

 

 

 

 

 

404

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,026

 

 

 

 

 

 

 

 

 

1,026

 

Accumulated dividend – Series F

 

 

 

 

 

1,727

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,727

)

 

 

 

 

 

(1,727

)

Accretion of Series F issuance costs

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

Warrants issued in connection with debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

297

 

 

 

 

 

 

 

 

 

297

 

Adoption of new accounting standard - See Note 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(364

)

 

 

 

 

 

(364

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,023

)

 

 

 

 

 

(4,023

)

Balance at March 31, 2020

 

 

102,030

 

 

$

225,499

 

 

 

 

18,992

 

 

$

2

 

 

$

18,953

 

 

$

(280,663

)

 

$

 

 

$

(261,708

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

351

 

 

 

 

 

 

366

 

 

 

 

 

 

 

 

 

366

 

Exercise of warrants

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

 

126

 

 

 

 

 

 

 

 

 

126

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,144

 

 

 

 

 

 

 

 

 

1,144

 

Accumulated dividend – Series F

 

 

 

 

 

1,935

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,935

)

 

 

 

 

 

(1,935

)

Accretion of Series F issuance costs

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,481

)

 

 

 

 

 

(8,481

)

Balance at June 30, 2020

 

 

102,030

 

 

$

227,452

 

 

 

 

19,378

 

 

$

2

 

 

$

20,571

 

 

$

(291,079

)

 

$

 

 

$

(270,506

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

511

 

 

 

 

 

 

1,051

 

 

 

 

 

 

 

 

 

1,051

 

Exercise of warrants

 

 

 

 

 

 

 

 

 

349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,868

 

 

 

 

 

 

 

 

 

2,868

 

Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs

 

 

 

 

 

 

 

 

 

7,878

 

 

 

1

 

 

 

171,128

 

 

 

 

 

 

 

 

 

171,129

 

Conversion of redeemable preferred stock to common stock upon initial public offering

 

 

(102,030

)

 

 

(211,902

)

 

 

 

34,442

 

 

 

3

 

 

 

211,899

 

 

 

 

 

 

 

 

 

211,902

 

Conversion of redeemable convertible debt to common stock upon initial public offering

 

 

 

 

 

 

 

 

 

5,250

 

 

 

1

 

 

 

50,172

 

 

 

 

 

 

 

 

 

50,173

 

Accumulated dividend – Series F

 

 

 

 

 

(2,744

)

 

 

 

 

 

 

 

 

 

 

 

 

2,744

 

 

 

 

 

 

2,744

 

Payment of Series F Dividend

 

 

 

 

 

(12,814

)