Editor’s Note: This story first appeared in the Austin Business Journal [subscriber content]. We’ve republished it here in an abbreviated format.
After a drought of more than a year without an initial public offering in Austin, the local business scene is having its second in less than a week.
BigCommerce plans to begin trading on the Nasdaq Wednesday under the ticker "BIGC." The Austin-based company is offering more than 9 million shares of common stock at $24 apiece, according to Tuesday's announcement, which would generate more than $216 million.
BigCommerce is a software-as-a-service company that makes a platform other businesses use to build online stores. Customers include Ben & Jerry’s, Skullcandy, Sony and Woolrich.
BigCommerce Holdings Inc. intends to sell 6.85 million shares while shareholders are selling nearly 2.2 million. Underwriters have a 30-day option to buy more than 1 million additional shares from the company, and more than 325,000 additional shares from shareholders.
The $24 share price was up from previous IPO ranges of $18-$20 and $21-$23. Some media outlets pointed to the breakout success of Shopify, a BigCommerce competitor, as a potential reason for the Austin company's more optimistic price. Shopify's stock is up more than 160% since the start of the year.
In 2019, BigCommerce had revenue of $112.1 million and a net loss of nearly $42.6 million, according to an Aug. 3 regulatory filing. The company has a history of operating at a loss, with a net loss of more than $38.8 million in 2018 and revenue of more than $91.8 million.
BigCommerce expects to reach an annual revenue run rate of $150.9 million to $151.2 million by June 30, which would be a roughly 31% increase from a year prior. Revenue run rate refers to how much revenue a company would generate in a year based on its existing contracts and is a pivotal measure for SaaS companies that rely on contracts with customers.
BigCommerce had 690 employees at the end of last year, with about 75% of those in Austin. The company was founded in 2009 in Sydney, Australia, and moved its headquarters to Austin in 2011. It raised at least $219 million in private funding from backers including GGV Capital, Goldman Sachs, General Catalyst, Revolution Growth and Softbank.
In addition to the HQ in Austin, BigCommerce has offices in San Francisco, Sydney and London.
Read the rest of the story in the Austin Business Journal [subscriber content].
