Bigcommerce Holdings, Inc. (NASDAQ: BIGC) stock lost over 6.7% on 10th September, 2020 (as of 1:11 pm GMT-4; Source: Google finance) disappointing investors post its lower than expected results. The stock rose over 19.3% in the last one month (Source: Finviz.com).
During the second quarter of 2020, the gross profit reached $28.6 million, which is gross margin of 79%, against gross margin of 77% a year ago and 78% last quarter. The gross margins were hurt in part by the high margin revenue share.
Gross margin from PSR revenue is really strong. Partner and services revenue were $12.4 million in Q2, up 74% year-over-year, which accounted for 34% of our Q2 revenue. The increase in partner and services revenue was primarily as a result of increased e-commerce activity driven in part by the COVID-19 pandemic and the improved monetization of partner revenue share.
For the second quarter of FY20, the firm’s revenue coming rose 33% yoy to $36.3 million, with overall annual revenue run-rate, or ARR, rose 32% yoy to $151.8 million. Enterprises account ARR rose 44% yoy during the second quarter driven by mid-market and large enterprise businesses. Subscription revenue rose 19% yoy to $23.9 million during the second quarter of FY20, while Subscription revenue accounting 66% of Q2 revenue driven by underlying new merchant growth and planned upgrades from existing merchants.
The firm’s ARR rose 32% yoy to $151.8 million, driven by revenue and ARR growth to be the best leading indicators for the growth in their business. ACV >$2,000 as of the end of the monthly billing period, and has 9,378 customers over the $2,000 threshold, which is a rise of 641 accounts, or 7% year-over-year.
ARPA, or average revenue per account for accounts above the $2,000 ACV threshold. ARPA rose 29% yoy to $12,936, boosted by a mix shift towards higher end retail pro plans and enterprise accounts as because the higher mix of larger deals.