By
Chimamanda U. Martha
March 11th, 2024
Despite its current woes, BigCommerce is one of the best performing IPOs in the past year.
The share performance of BigCommerce Holdings Inc (NASDAQ: BIGC), an Austin, Texas-based IT service management firm, has been wobbly in the past days as tech stocks continue to see a broad sell-off. The company has shed off as much as 25% of its all-time high price attained on its first day of trading when it rose to $72.27, up from $24. At present, BIGC is down 3.53% to $54.39.
BigCommerce is a relatively old firm, established in 2009 but only made its way to the public sphere in August 2020, a move that stirred its visibility with its top competitors including Amazon Web Services, and other cloud-based Software-as-a-Service (SaaS) providers. Specifically, the business of BigCommerce revolves around helping startups maintain an e-commerce presence. The firm helps its clients build their website, integrate digital shopping carts, and web-search optimization amongst other offerings.
Whilst the ongoing drop in the stock performance is a concern for the company’s investors, many are taking solace in the future prospects of the firm per its competitive offerings. At present, brands like Detroit Pistons, and Hush Puppies are already on the books on BigCommerce. There are inbound expectations for more growth as Amazon.com Inc (NASDAQ: AMZN) continues to see brick walls in its service provisions to its SaaS clients.
The poor performance of BigCommerce is typical of most firms in their post-IPO debut hype. With the company exhibiting the right product turnover marked by its quarterly performance, time will definitely fade off the bearish trends on record as of now.
BigCommerce Q1 Performance Recap
Early in May, the company unveiled its Q1 performance report in which it recorded a boost in its revenue. Q1 revenue was up 41% on the year to $46.67M. This marks the company’s push to reach additional clients/merchants with its product offerings.
“With first quarter revenue up 41% over 2020, we are following up three successive years of accelerating growth with another quarter of accelerating growth. This not only reflects our strategic differentiation but the ability of our merchants to grow with our platform,” says CEO Brent Bellm. “Every day, more merchants are realizing the benefits that an open, flexible SaaS platform like BigCommerce can provide, and we remain committed to providing our customers the competitive advantage needed in today’s digital world.”
The self push of the company, evident in its fiscal year guidance review is a positive pointer to guard its future growth and potential share performance.
Other High Performing Stocks in the Year-to-Date Period
Despite its current woes, BIGC is one of the best performing IPOs in the past year. Other notable names include CureVac BV (NASDAQ: CVAC), a German biopharmaceutical company with a COVID-19 vaccine currently in clinical trials. The stock debuted at a price of $16 and has rallied over 596.75% to close at a share price of $111.48 on Friday.
Additionally, Yalla Group Ltd (NYSE: YALA), and ZIM Integrated Shipping Services Ltd (NYSE: ZIM) are amongst the top performers rising to new highs following their public market debuts.