What Happened:

Shares of e-commerce software platform provider BigCommerce (NASDAQ: BIGC) jumped 16.4% in the morning session after the company reported first quarter earnings results that beat analysts' revenue, operating income, free cash flow, and EPS expectations. However, ARR was only in line. Guidance was mixed, with revenue guidance for Q2 and the full year roughly in line, while operating profit guidance for Q2 was slightly below expectations. Zooming out, we think this was a mixed quarter.

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What is the market telling us:

BigCommerce's shares are very volatile and over the last year have had 26 moves greater than 5%. But moves this big are very rare even for BigCommerce and that is indicating to us that this news had a significant impact on the market's perception of the business. 

The biggest move we wrote about over the last year was 6 months ago, when the stock dropped 14.1% on the news that the company reported third quarter results that narrowly missed Wall Street's revenue estimates. We struggled to find many strong positives in these results. The company continued to burn cash, while the revenue outlook for the next quarter came in roughly in line with Wall Street's expectations. During the earnings call, management noted that they expect "macroeconomic conditions to remain a headwind in the e-commerce space." In addition, it announced a restructuring plan to reduce its current workforce by approximately 7 percent. Overall, this was a weaker quarter for BigCommerce.

BigCommerce is down 16.6% since the beginning of the year, and at $7.51 per share it is trading 37.8% below its 52-week high of $12.08 from August 2023. Investors who bought $1,000 worth of BigCommerce's shares at the IPO in August 2020 would now be looking at an investment worth $103.85.

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