BigCommerce sees B2B at 40% of platform spend

For BigCommerce, the tailwinds are in place for the hypergrowth of business-to-business (B2B) e-commerce.

Hot off the heels of his purchase of BundleB2B, BigCommerce CEO Brent Bellm noted on a conference call with analysts that B2B is tied to an ever-increasing percentage of spend on the company’s platform.

In response to analysts’ questions about the roadmap for B2B – a relatively smaller part of the company’s business today – Bellm noted, “The future couldn’t be brighter for us as than SaaS platform.”

He noted that B2B generates around a third – but increases over time to up to 40% – of total platform spend.

“And the growth rates are double those of B2C,” he told analysts.

In addition to its purchase of BundleB2B, BigCommerce last month launched a partnership with lender SellersFunding to bring working capital directly to sellers on the platform.

BigCommerce estimated that the global B2B e-commerce market is expected to reach $25.65 trillion by 2028, growing more than 18% annually.

Read also: BigCommerce acquires BundleB2B

BigCommerce reported total revenue was $66.1 million, up 42% from Q1 2021. ARR for accounts with at least one business plan was $189 million as of March 31, 2022, up 68% compared to March 31, 2021.

Overall, Bellm said the CEO’s company-wide growth has come despite “the post-pandemic normalization of e-commerce and consumer spending.”

In additional materials released alongside the results, BigCommerce estimated that global digital commerce application revenue, by business model, increases 18% for B2B, compared to 10% for B2C, as measured by compound annual growth rate .

Near-term priorities following the BundleB2B deal include integrating the acquired company’s features into BigCommerce’s native user experience, management said on the call.

Chief Financial Officer Robert Alvarez said “our continued evolution from the mix to corporate plans, partners and services, revenue (or PSR) grew 23% year-over-year” . Accounts with an annual contract value greater than $2,000 gained 23% to reach 12,972 customers.

Looking ahead, management noted that the company continues to see demand from large enterprise accounts both B2C and B2B.

And asked if at least some e-commerce peers have seen some slowdown in demand, management noted on the call that “social commerce” remains a key target market, particularly in advertising.

Bellm said later in the call that the longer-term roadmap is to take user experiences and features designed for B2C and add “common features for B2B…including workflows.” approval, invoices, etc. and anything added”.

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