This week we saw the BigCommerce Holdings, Inc. (NASDAQ:BIGC) share price climb by 11%. But that doesn't change the fact that the returns over the last year have been disappointing. Like an arid lake in a warming world, shareholder value has evaporated, with the share price down 69% in that time. The share price recovery is not so impressive when you consider the fall. Of course, it could be that the fall was overdone.

The recent uptick of 11% could be a positive sign of things to come, so let's take a lot at historical fundamentals.

See our latest analysis for BigCommerce Holdings

Because BigCommerce Holdings made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

BigCommerce Holdings grew its revenue by 45% over the last year. That's definitely a respectable growth rate. Meanwhile, the share price tanked 69%, suggesting the market had much higher expectations. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. For us it's important to consider when you think a company will become profitable, if you're basing your valuation on revenue.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on BigCommerce Holdings

A Different Perspective

BigCommerce Holdings shareholders are down 69% for the year, even worse than the market loss of 14%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 1.7% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 3 warning signs for BigCommerce Holdings that you should be aware of before investing here.