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BigCommerce Eyes IPO As Pandemic Fuels Online Shopping Surge

July 14, 2020 at 09:41PM

BigCommerce is on track to becoming the latest tech company to go public.

The Texas-based eCommerce firm, which helps businesses design and roll out online storefronts, said in a press statement that it has notified the U.S. Securities and Exchange Commission (SEC) about plans for a potential initial public offering (IPO).

The price range, number of shares and timing of the IPO have yet to be determined, the company said.

BigCommerce’s potentially big move comes as interest in online commerce explodes in the wake of the coronavirus crisis and the social distancing requirements it has spawned.

The eCommerce company, launched more than a decade ago during the last recession, offered a detailed overview for potential investors as part of its filing with the SEC.

While spending at brick-and-mortar retail stores is expected to plunge 14 percent in 2020, online spending is on track to jump by 18 percent, BigCommerce noted, citing stats released last month by eMarketer.

“Our business has benefited from this shift, both in accelerated sales growth for our existing customers’ stores and in our sales of new store subscriptions to customers,” BigCommerce noted in its prospectus for potential investors.

The company said its revenue for the first quarter of 2020 jumped nearly 30 percent over the same period a year ago.

Sales of “Essentials” plans accelerated with the intensification of the coronavirus crisis, shooting up 33 percent in March, 106 percent in April and 86 percent in May.

“Enterprise” plan sales to larger companies initially declined 14 percent and 13 percent on a year-over-year basis in March and April, BigCommerce stated, noting that “several of our larger enterprise sales prospects” cited the need to refocus on their response to the pandemic. However, sales of Enterprise plans rebounded in May, rising 60 percent.

“Online shopping behaviors are evolving as eCommerce adoption is accelerating around the world,” BigCommerce noted. “This puts tremendous pressure on businesses to pursue digital transformation with technology that innovates as fast as the market.”

BigCommerce Eyes IPO As Pandemic Fuels Online Shopping Surge …

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