BigCommerce, the public technology company whose features include customer groups and segmentation, search engine optimization (SEO), web hosting, and more is on a roll. It made a spectacular debut in the public markets. with the stock soaring by more than 400 percent.
The company which went public at $24 a share on Wednesday, is trading sharply higher again on Thursday, soaring around $100 a share, which makes BigCommerce one of the year’s best-performing initial public offerings.
The company was founded in 2009 and has 600+ employees with headquarters in Austin, Texas. With about 66 million shares outstanding, the company now has a market cap of about $6.6 billion, or about 44 times run-rate revenue of about $150 million, which instantly makes it one of the public market’s most expensive software companies on a price-to-sales basis.
The company’s primary rival, Ottawa-based Shopify (SHOP), which trades for about 50 times the current year is the only one with a higher growth trajectory. Shopify had $714.3 million in revenue, while BigCommerce estimates its revenues to be between 35.5-35.8 million.
Both companies are competitors in similar businesses offering cloud-based software for running online stores.
CEO Brett Bellm of BigCommerce said in an interview with Barron’s yesterday that the two companies have different approaches to the market, with Shopify taking a suite approach and BigCommerce using a flexible platform that levers third-party software.
BigCommerce shares are up 3.2%, at $97.70, in recent trading, and have now rallied an astonishing 307% from the company’s IPO pricing this week at $24. That’s the second-best new-issue performance this year, trailing only Schrodinger (SDGR), a drug-discovery platform business that has rallied about 329% since its IPO in February.