BigCommerce (BIGC)

Alex Claytons S-1 breakdown :


BigCommerce isn’t a market leader but will be the second-closest standalone public company competitor to Shopify. While their growth and unit economics look nothing like Shopify when they went public – even though both companies were at very similar scale – I suspect there will be an appetite to own a part of the rapidly growing ecommerce infrastructure market. Moreover, given the growth profile, I don’t think BigCommerce will price their IPO at a premium multiple, so if you believe in the opportunity and BigCommerce’s execution, you don’t have to look to far to see a strong return.

Shopify is almost 15x larger than BigCommerce in terms of ARR, and still growing close to 50% YoY. The market is massive and there is space for multiple players, and while BigCommerce is a very distant #2, they will be the only standalone public company competitor and could be an attractive acquisition candidate for any company looking to compete with Shopify. They’re also telling a story around B2B commerce and more international expansion which is again a testament to the massive market of online commerce generally.

As I mentioned there isn’t a better time to be a public SaaS company than now and BigCommerce is in a large, proven market and still a smaller scale compared to most SaaS IPOs. I bet investors look past the unit economics, competition and scale and want to be a part of the story." :…