BIGC - Earnings call transcript Q3 2020 | BigCommerce Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to BigCommerce’s Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that today’s conference is being recorded. I would now like to turn the conference over to your first speaker today, Rohit Giri, Head of Investor Relations. ahead. go Please you Thank

Rohit Giri

of BigCommerce’s Good of contain afternoon call, release quarter earnings pursuant Safe Alvarez. me BigCommerce’s after Bellm the Chairman, and to CFO, Private statements welcome the results which XXXX. Securities to Robert Litigation are With discussing today. press call market third CEO announced Reform and the Brent the will XXXX Act Today’s close and provisions President, forward-looking in issued made Harbor our are

Forward-looking condition, will include statements and third trends, these guidance statements to be as the concerning upon statements business and can subsequent believe, by words. financial today we the statements similar undertake of and as do identified plan, our any financial expect, reflect and business duty views words our and full intend, performance should expected update These be These as year only not quarter date for statements. views at and anticipate, seek, not our future of XXXX representing and XXXX. relied financial our or any such

Forward-looking differ that and from results could actual that their to address subject uncertainties to cause expectations. nature statements are by risks materially matters

and could material Commission. other risks Securities a to For of discussion actual important affect factors results, risks other Exchange and filings disclosures the our with that and our the refer please contained in

to been also to press well metrics are not the that, reconciliation financial accordance our is at available the me call, investors.bigcommerce.com. the as call as release, and SEC in metrics of certain to financial we which in non-GAAP During prepared non-GAAP comparable included most these over measures will which is the other also Generally our how turn GAAP define let measures Principles. website Brent. these Accepted With financial on and measures earnings with furnished directly Accounting has we A discuss

Brent Bellm

in is hope keeping joining thanks good us safe. today. Thank everyone Welcome for and everyone Rohit. health you, I and

right into third performance. our quarter jump Let's

our our up best-of-breed third QX annual XX% product Our which strong ARR billion, achieved was segments continued ARR million, this rates remain reflect ability highest We strategically XX% exceptional years We results revenue accelerated in or ecosystem. and execution, growth to at for of with year-over-year. of we've up the partner merchants the rate and of past QX year-over-year coming disrupt four serving mid-market $XX.X $XXX in illustrates further year-over-year. market. needs growth on revenue Total quarter enterprise was the had impact our run the quarters. sizes, continue and large and of focused revenue an innovation, revenue and all rate consecutive our quarter, to

reflected disciplined continued in a margin. is year-over-year both QX financial and delivered XX% progress adjusted in We our our our model improving enterprise was EBITDA account that market that in in point intentional XX QX. moving Our which improvement year-over-year in purposeful. rate, framework and I'm delivered investment up up growth represents through efficiency results these ARR was a proud which the we of

the in three succeed market to primary continues platform because SaaS open Our of factors.

and our platforms are ownership. flexibility; platforms enterprise functionality; of our openness second, cost total third, First, lower and

we our overall and started. to crisis a and decisions benefited important COVID-XX trends, made been the the have progress has before strategic ecommerce We equally company investments from as

industry in reflected is recognition. momentum continued financial third-party both our Our results and

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the it recently to million new availability global launched easier to BigCommerce exciting recently merchants feature monthly growing and we of manage enhancements the their have eCommerce the some a join and sales presence. a XXX recently launched. for Now, than discuss omnichannel partnership fastest and across Manager, with product of Wish, that platform of We Channel more I'd modernized like commerce ecosystem, the marketplaces announced to comprehensive expand which latest to one We active helps partner users countries. the big largest XXX visibility merchants' makes

call, tag levers outline leverage to on on get In merchants fulfillment earnings are we growth delivers can pursuing. delivery exclusive the our affordable and last now two-day Wish their the wish multiple addition listings. we On selling fast BigCommerce

with of versus air Let than When are are greater enterprise ACV. account platform, we sequentially our QX, XX% in drivers. We enterprise our and versus essentials business our pricing per thrive saw me our grow we platform XXXX. growing increase grow previously strong merchants growth last of on to our versus businesses with volume give QX, on and to saw above In for customer adjust and you an growth the I revenue year, enterprise update grow account as accounts average sales as designed on QX our the mentioned, each threshold. XX% X% $X,XXX plans our

BXB strongest for existing in our merchants. also by not new was base. experienced only also bookings, enterprise acquiring but new QX BXC new growth plan of one We bookings, merchant momentum organic our quarters within grow continued we in and

international go-to-market Revenue fueled grew from and our our with EMEA, the XX% Our in growth growth and is geographies world. also year-over-year product year-over-year in QX revenue XX%, by capabilities XX% expanding in business around to year-over-year model massive new to build remain our SaaS to our opportunity efforts bring to revenue open committed see XXXX we internationally. we And as growth in a markets APAC. our expand plan. We

CED site expansion manage Finally, ability the sell-cross in we in channel level with of Commerce, ecosystem. QX, SureDone, channel signed to technology up Accessibility shoppers invested channel. partnerships our and tools, donations. Tinuiti all Wish, resources and to support foundational To marketplaces, cross comprehensive merchants' We include Feedonomics, Successful we value efforts. offerings their managers significant features to what to we are further bolster help our in the merchant e ability sales channel call Teikametrics. increase advertising a open saw stores. that that our on on and to new features commerce merchants' sales expanding Deliverr on impact up to and We've add welcome which charitable ads partners and

I by our all of over during partners customers featuring resiliency, success marquee to for of XX stages to new BigCommerce the BigCommerce merchants featuring partners, support registrants in tips excited leading highlights to to co-sponsored up, delivered their our hosted headless has how of tactics, [Indiscernible]. to SaaS expanded It my expand event three annual making reiterate to grateful for ease. continued had offices. suite iZettle, forge digital serve a with open globally, a sincere launched all BigCommerce their these and XXXX would of Big of one marketer. with service real-world growth. our to sale SaaS-based and efforts month. merchants and leading support eSSENTIAL which to all was influencers, expert and accessibility enhance our access proven experts, of all last with third annual solution, offerings continue X,XXX our with year and This like days three-day ecommerce enable We and relationship Our content to EMEA team with employees Wrapping reach digital Netherlands, integration shop month. challenging to marked merchants partnership times. help stories, number want and across Accessibility, just thanks event and our In payment our intended I strategies, gateway and with to free model, Over of am with point shoppers to We're Big, an the this Make end the PayPal our dedication I our partnership BigCommerce sessions

for like financial Now, turn Robert to deeper I it our of to discussion would over a results.

Robert Alvarez

Thanks thanks us everyone to again Brent. today. for And joining

results, results. to detailed our like I'd GAAP to that certain point I'll discussing results, also discussing out financial be in Before non-GAAP addition

in of subscriptions pandemic, Partner rate existing up a COVID-XX year-over-year, QX of growth we and $XX.X, merchants. driven experienced Debt increased share. revenue upgrades XX% our primarily our the results in growth and behavior versus earnings revenue, across we QX revenue found rates. for of activity and consumer the well new monetization platform, is improvement be Brent generated financial can million XX% QX, of lead we by with accounted up XX% XX% accounted competitive revenue in non-GAAP planned results which QX, essentials revenue and of accelerated strong revenue which changes was by Since the a subscription our partner promotion, the win up GAAP bookings XX-day from sales and and and sun-setting in and between year-over-year, cycle-time, retention, services mentioned, discussed increase an due for in in in improve led result in conversion million of of GAAP QX call. $XX.X As along our revenue. The in partner onset services ecommerce was Our the plans have year-over-year. XX% revenue shortening total the generally pandemic-related reconciliation of Subscription part release $XX.X merchant our qQX as as to QX

also necessary Our teams platform strong working the in our challenging to merchants are to performance, these uptime help hard maintain and times.

structural pandemic-related restrictions the approach continue levels we transaction and this the growth of to PSR prudent subscription pandemic receive abates, fuel While after we in necessary elevated our impact eventually long-term investments COVID-XX a given forecasting platform take ease. macroeconomic volume, shift Therefore, COVID to to continue ecommerce continue while the to uncertainty, as will may towards the strategy. make expect revenue,

business to our metrics. key on Moving

run ARR, our annual rate. First, revenue let's discuss

generate recurring ARR XX-month monthly As sum MRR by services the that revenue of plus or revenue we consists PSR. the multiplied reminder, XX month's our the trailing current partnering of revenue from or

sales increased and mentioned earlier, subscription of strengthen from QX merchant fees strong resulting As and up new $XXX ARR higher order XX% was we bookings, merchant continued from million, merchants, the existing year-over-year growth retention to adjustments.

enterprise legacy As on the tracking mix market about measure disrupt focus in mid-market solution ARR. and open length by shift at in account enterprise We enterprise we've best before, source the to providers our of the SaaS we accounts talked increasing providing open the segments. our

As ARR enterprise this as XX% year-over-year Brent mentioned, to account mix ARR million of traction of XXth, in represented enterprise in to of XX% demonstrating compared market. and shift XX% XXXX, as enterprise September increased our XXth, segment QX grew continued our $XX.X of accounts the and further September

also We accounts total billing as end $X,XXX value ACV track contract the the of or period. than annual number monthly with of of a greater

threshold this in customers XX% Accounts XX% We QX, subscription which QX, from determining plan the up and to ACV was consider above threshold, cohort, only our contract in QX of increase greater QX we ARR total an X.XXX over XXXX. accounts $X,XXX than with compared $X,XXX in XXX For XX% value represented of a up revenue $X,XXX the have which ACV. accounts ended year-over-year. in

we metric account per threshold. $X,XXX or key ARPA, average accounts is Another above ACV for track revenue the

In ARPA year-over-year, deals count purposeful invest enterprise and plans in gross driven our all a the us plans a QX. intentional On references margin post as and basis, are allowed unless capital. QX that $XX,XXX, we expenses, note retail strong shift please results XX% of our up be share towards and the has remains our to end strong, Our In a mix basis. higher to QX, mix our of strategic subset and expenses total $XX.X basis. margin stated, gross how of XX%. year-over-year discussing non-GAAP otherwise our pro and profile in On earned a and million, we a statement, a technology operating profit enterprise very gross share income for representing year XX% by in margins by marketing margin our remainder margin for from on basis, gross we of a ago. that was non-GAAP of a net million part year in high to which $XX.X margin was $XX.X were we last compared a impacted of booked QX gross non-GAAP a quarter. compares the or partners, was ago This our XX% XX% on increase a and sales revenue, to million revenue The XX%

we've year mix first to sales U.S. investments and significant flow, throughout market marketing and Even the nine XXXX investing, reach leverage months because our towards enterprise our self-service abroad. been made accounts. enterprise have drive mid-market of and in XXXX the the and inbound Most XX% without able We non-GAAP a of investments motions, further continue expand or purchase million of shift and to in come having while in our grow and our marketing. means revenue, expenses million, can to $XX.X spend ago. a and tech outbound On on compared sums for development digital to sales agency XX% research segment and from to partner we marketing, leads large $XX.X basis, and were of which our QX in this referrals

aggressively while and Many showing growth also the working enterprise know are the engineering, enterprise have mid-market in disrupt the investments ARR. accelerating We the by improving to have as product leverage. required of investments and evidenced in made. rates been We already segments invested our

expenses administrative R&D, a XX% non-GAAP for General in our Adjusted million, So we XXXX. $X.X leverage million of compared continue and team margin $X.X XX% ago. -- to revenue, $X.X million, a a to Kyiv, Ukraine. ago in further of were negative million $X.X development a million in for margin and are was good QX basis, up or XX% compared expectations we for better offshore Non-GAAP to operating or XX% $X.XX or leverage scale year to seeing negative On services to revenue, as year loss QX negative share, operating in loss of a or EBITDA XX% drive operating negative a compared $X.X or margin, a XX% XX% EBITDA and QX million, net loss adjusted result was leverage net negative a improvement million, $X.XX a by a This year $X.X than manage I or negative a negative spend from negative increase compared was or mentioned. ago. year negative high cents share per XX and previously across partner ago. our was driven revenue our the XX% margin adjusted ability significant EBITDA was areas margin million, to and and negative QX a the per effectively to $X.X $X point negative

million cash with sheet equivalents. and balance and QX to cash $XXX.X We cash ended Turning the statement. in flow

Our remaining year. approximately last from million $XX XX% performance million, total our up $XX.X obligations, RPO of

margin revenue months. the free to Free nearly and We ago. mix margin a million was flow flow is to a the over $XX.X ago. and in of leverage QX expect realize year call to driven cash margin for XX the by cash full a business flow by cash total as was XX% million, a now XX free the a negative prepaid ability guidance more mix XX% for of recognize which flow $XX.X million of was XXXX. year or negative conclude point compared year-to-date or XX%, our negative improvement negative year enterprise, million, The RPO negative shift $XX.X higher to $XX.X to I flow cash free contracts. the million in approximately Operating and negative cash next compared providing will our $XX.X

total range guidance compared million implied. issued revenue represents the quarter, our the an of expect midpoint of previously the For This at increase to over million. million $X $XX.X fourth in we $XX.X what to

grow in to than range. with to our to that fourth in similar consistent will revenue with a the subscription our while our quarter predict we Considering over to assumption in more of volumes business quarter QX, what COVID-XX quarter, will expected previous Overall, expectations. mid-XXs, is is to normalize that the six level and that the has Our grow is assumes to the three QX. course transaction better is ad guidance PSR services And expectation next variability our will share revenue our QX prudent. account adjusted being performance from assumption partner look the QX be partner partners the difficult of new under down down the assumption our takes fact pre=COVID This expected rev with And PSR than it volumes in forecast levels that the the during revenue. believe into is sequentially arrangement one that we XX% contribution being will of related it the continue to back pandemic. months. year-end subscription like

expect non-GAAP to operating a $X.X of We the loss million negative negative in range million. $XX

XXXX, year-over-year now For year is growth million to a the $XXX.X total XX.X% we the in million revenue fiscal expect XX%. or of $XXX.X full range to rate

a take range of operating expect and your $XX.X to million million. in $XX.X loss to Brent any are With the We negative Operator? questions. I happy of non-GAAP that, negative

Operator

[Operator from of from Instructions] comment comes Zlotsky a Stanley. Our question first line Stan or Morgan

line open. Your is

Unidentified Analyst

just more to a the level question just rev guys, the basis your payments, growth kind I'm PSR I within grow see solutions dollar Hey there's just merchants Within outside Chris you amount assuming quarter. did that like durability within that payments? you in stronger is ask more guess motion? the accelerated is as payments when the that more percentage taken kind to Congrats about I which Thank a on sure do platform? wanted PSR, is both And follow you. on and Because I than that saw see. guide of of and attach awesome see they is really Stan. than of merchants your of to can take they this to share? you the and How of first sequentially, have make what upsell

Robert Alvarez

one, let Yes. Hey, take you the can first Chris. one. take second Brent, the me

over we couple about, So payments. PSR, at we've when into as beyond look the partnerships years, definitely our we've talked past entered

If is our span beyond obviously Payments most the partners best-of-breed mature. you just ecosystem, think about well now our payments.

kicks call for really the QX. we increase that feel about a great expectations. partner effect. the of revenue partners this partners our think ad has revenue great time. over But same, beyond beyond goes were about of ability the We talked our for guidance saw That well in our last an to is little QX QX, as about but the partnership. was into us QX that beyond, share partner. that payments rev our during We stream. we in One ad remains feel about good just in -- It's as monetize produce the feel expecting a in we to renegotiation bit started largest about and agreement from And amount great noisy we and we new about that

Brent Bellm

themselves real apps. partnerships is our our that their approach partners sense add to This marketplace Brent, I'd is verticals. best with help commitment customers our to them of of technology by organized way version we a We the to and present in of

full BXB, and got our we've marketing other team, by marketing then and company adopting lots the team So marketing well and selecting solutions and whose email They point-of-sale payments them. of around within best are and teams, office, supported our as merchants partner as team a marketing our assist partner ERP/back are pods. basically different to et in jobs cetera, for time the apps, customer

promoting all assist their So capabilities adoption. trying really across and in simultaneously verticals, our best various partners the we to driving are of

Unidentified Analyst

Thanks, it. guys. Got

Operator

you. Thank

question from next line or comment Barclays. Our Raimo Lenschow comes from of the

is line Your open.

Raimo Lenschow

questions. you. The -- two Hey, thank

at normalizing what than First, Brent, last I mean, if are this I'm XX% things quarter. and cetera. the like that growth saw you But we is we eventually, aware revenue the growth better et I partner are that seeing quarter, look obviously saw

on a relate living So And drivers then rates you. if think trying tell Robert growth kind of for a playing now about programs is about in starting like, revenue? it’s like it the there inflect it more economy again, the like puts but and and because the now? had of I’m a e-commerce couple the role new so kind lot follow-up is e-commerce around us at bit that does the of Thank how us subscription, this partner what there, and takes of to the a to new then tell the adoption, beginning about I of to year, reminders higher, little maybe it's we of we're

Robert Alvarez

keep Hey, partner continue trend partners. a largest rates sales the guidance, planning year-on-year we of at is component customers, strong passing and see internally why return PSR that kind single line, of hold in normal keeps growth external share up therefore, for has customer really so strong. and from our driver new of in our that some revenue, was reason last to up Raimo. return year-on-year but a or sales. And GMV In each rev our the week. the to and biggest rev is being And very that's in biggest delayed We volume actual payments quarter. stood XX% course, And the share with for

Raimo Lenschow

Okay.

Brent Bellm

we revenue as Raimo. setting that about we July. on remind second which were question we And would that bounce in just talked Hey, down promo Yes had QX a paid wound expectations we Raimo. everybody, in last to those subscription Yes, would your XX-day to stores. stores a lot back time, convert

we very to subscription pleased were So line. the deliver on year-over-year XX% when

new into to partnership We I growth that biggest about. had the our this in I agreement PSR, I into teed It's impact partner. QX. the consistent ad probably well. to the of thing emphasize expect ad out big really call subscriptions driver with done want The is a really, the for has think similar one to Again, enter up spoken revenue

growing out that PSR were in XX% be range you versus of guiding to QX in what to XXs. would kind that the If for we're back

impact on those are really PSR so So COVID. into that's bit front. GMV for are, expectations due that a continued But inability little to predict QX secondary And overall, again, PSR. QX going two the factors our factor the noisy COVID, ramping to we the main to down and

Raimo Lenschow

Well Congratulations. done. Perfect.

Brent Bellm

Thanks Raimo.

Operator

Thank you.

from or Our Samana line next Samad comment question from of Jefferies. the comes

is open. Your line

Samad Samana

Hi, to Great quarter see. evening. Strong good guys.

part in maybe quarter an gain question support XXth. Magento have saw announced view And June -- many there was Magento. Brent, third realistic you how to or that? your Just an realistic new increase curious customers as customer of One, could new your then you that if on share? going that units you're do legacy on a I'm maybe the a more end increase seeing are on on is from

Brent Bellm

all of Yes. available them, scan various a are still of and get Magento the many them last last I you there, versions of that like up -- out internet how after when checked I sites looked one built was X. look I that XX. remember, XX,XXX if are there. right, running the The out and We can time do time And there of June with.com stores publicly on something they was

that out that are it's So -- from there's downloaded, Magento clearly, XXs their And certain because sites software, of running installed still merchant there or many, easily on I it. stop still am on-premise a of nobody can that there X. are can version many many, thousands of

onto X Magento of for sales customers good converting very it generate us. off to continue We

it that think continued zero. There's the I one of to trickles much So sales that's that opportunity closer until us. for down lots

Samad Samana

I'm the was with continue curious strength maybe The Great. little into new from that for follow-up if to growth tougher. bit, category a accounts $X,XXX, back And a as that comp then even of customer accelerate ACV, much can you. maybe Robert, peel versus greater existing you the got right than customers, the adds? in typically there a how bigger

Robert Alvarez

Yes, bookings, we Samad. mean, quarter had great I another

change can at look So for bookings see us. you really quarter our if ARR, strong in you a

able deliver. bookings So demand new been that I and continued think we're is this we've to the major that seeing of the just driver

Samad Samana

to performance was great much. care. Great. an -- It guys. Thanks impressive very Take really see

Robert Alvarez

so Thanks much.

Operator

you. Thank

Our next question or comment comes from the line of KBCM. Josh Beck from

Your line open. is

Josh Beck

wanted see mean, really for shrinking new bookings. a the these any I context ask to taking to I the about sales share for cycles. you pretty you on Thank question. unusual can it's company

other company is really with it you're you are the these any just of in bookies on increased So that new seeing? the context any now that your that anything share do you urgency? there to Is driving maybe conversations, can awareness public, what's strong

Brent Bellm

of in the companies flat of flexibility the lot as offline benefits time. about fastest the needed provides a platform And the shrinking. got either and that is easy certainly caught replace enhancing either really up lights to enterprise to our possible, who one the it's urgency footed operations selling get as third-party and owned and and or were Josh, great fast for channels of over to possible sales pandemic keep Hey, timeframe your functionality and

certainly are to to. urgency. sold there companies lot addition, they add not geographies, drove then of that new new but who segments mean new themselves might a be brands, of found to And new In a e-commerce, that lot

be a to before sheet partners is the that which prospective gives assist one, keeps size, And we public greater safe nice being continues public sales cycles, choice, this digital because make year confidence our platform. the into future platform to are that does of betting what choice. have with really to they the right really e-commerce road. and two ecosystem believe force which they strength, is visibility they them making August. day making just by but not innovate want to sure strategy companies or They that a that curve, ahead their sort And on down customers at right, being a replatform third be basically time e-commerce, to was relative of our it to the that our Your momentum it at get them forefront of to of it, are true. decision, Companies the on doesn't their want balance

help? does our belief that's that to can't beneficial ecosystem. and really much we customer it. have And We so our But that quantify how a

Josh Beck

the on kind of Brent. contemplate it of like look some you GMV. curious, difficult And guidance. you air be to you lockdowns like just bit Thanks, rather maybe you'd ease? things when at simply conservative to follow-up deceleration on just of side that predict Robert, the want certainly data, these maybe Or as as I'm then just very more a conservative? is it's seeing it you metric and this are some sounds a

Robert Alvarez

Yes. Hey, JB.

holiday again strength back in through the going of about maybe really saw our as spike at we're But a not approach carried and end a March, year, performance, As the peak The March, April, next strong lot of having QX, through we levels season GMV we are what us. take it and to what this into to be quarter saw of this best our would We GMV prudent in going But kind talked still holiday season year. the the in in again big a was is typical going which year for before into really on just, QX. really April. be transactions. year, a

but So ending just I to approach six pre-COVID three we'll what down next next guess plays is ramp QX were year, where a and over just months to to how doing closer levels GMV taking out. see -- we're QX have the we're

Josh Beck

guys. Thanks, sense. Makes

Robert Alvarez

Thanks, JB.

Operator

you. Thank

Our line comment next question or comes from David Canaccord. from of the Hynes

open. Your line is

David Hynes

about shift current the that in I and questions. I kind time e-commerce and cohort Hey, taking versus about gig. to pre-COVID, that the to us the what of wanted you're compared about new guys. ask Congrats mix for guess ads in environment? any tells wins, the first of any participants replatforming maybe on implications Curious $X,XXX if plus Brent, thanks customer the results, seeing

Brent Bellm

working Hey, of new closely possible. and as versus XX-XX for really of Under need to estimate environments, the And adopt existing track our if for about as right of was thinking to colleagues, the who platform. first the to being scratch lot in handling pandemic, back volumes. of direction things remote importance were months able every now it's that start of clinging David, the sites are be quickly them the or easier on keep with future and and several trying a by from times, new we in the replatforms your to their normal fingernails, sites, companies go they're the those folks readjusted we mix up, belief about that kind shifted sites. customer. this on lucky that sort But understanding to to don't It have

And so a that. mix. big certainly, be But I on of probably have question. and to specifically share total Thanks back part don't number pretty migrations for are the to a able

David Hynes

follow-up. a just maybe then And sense. makes That Yes.

obviously think are mid-market you know we market. in I enterprise well that guys So look positioned

as think, as in you've of the seen of of I resurgence benefits, you one will kind the a of SMB COVID, well. if growth segment

you going about if don't any how if are better And allocation just? a change terms but question Brent, know right, I So that's in of you're you, of kind for forward? I'm curious investment driven that's thinking they're

Robert Alvarez

bookings today investments, feel that I'll both. enterprise can driving I clearly, since think Hey, our balance we that of across seeing DJ. there's a that the but But deploying in we've growth our have we're to way we're of think things start And for segment. like bookings both benefit the funds strong yes, accounts, Brent we finish. market, strong and March, I seen how and you and is lot SMB really we're segments, in terms going

pleased major performance no but of teams. so with SMB And our the changes, definitely

David Hynes

sense. yes. Yes, Make

guys. Thanks, Great. Okay.

Operator

Thank you.

Company. Our next line & comes from Berg Scott question or of from the Needham comment

is line open. Your

Scott Berg

I taking good me. Brent, Hi, guess a and for on quarter two questions. congrats for thanks my and

First vendor let's to seeing that in that general maybe start whether try comments. had driving this what some I to customers a are of side. in any enterprise trends, a type know to your those seeing or just move technology type missing or like was you besides off commonality really up of of the with particular the transaction rush mass if has? what's customers they're customers all, maybe on that attract if current it them e-commerce that market with BXB modernization functionality Brent, aging during pandemic of those there's kind e-commerce of to particular the platform are you're more didn't

Brent Bellm

Yes.

the on SaaS and on-premise It's is I question, old legacy or Scott. company dynamics on depending for thanks think and outdated whether software, an -- a the on different platform.

find on on-premise of there's XX%, that, seems five to always over find yes. to of software start on patches, companies lifespan that that modernized outdated, before numbers you're words, of to customizing it and on, that you trends. that performing it changed. in time the rule say on-premise the result poor can't XX buggy to the increasingly next whether grab hard it's other a and so advantage replatform this functionality hasn't that you're XX% buy latest queries In upgrades companies to the do over. take to months, are like planning the be years And that version they ironclad four start license, If And be and year software, typically as about out retailer a every it, internet you seems

sort of date the in some In nowhere capabilities are addition close haven't or of they to which from performance, we X,XXXs, to older, And the fast the on invested simply the still XXs early move be that, you're where are and platform, haven't up, one have you're month, companies on of don't keep but ground partnerships you losing those announcing. will well. may as SaaS, every ones they and we those, off the like if kept eventually

a e-commerce, one a If those, we're the forefront because of we few we're minority focused a do platform, course, platforms that. that on are is distinguished software of everything really it stay e-commerce And not we're they're you not one only want revenue, is only that only investing for SaaS the to are of to conglomerate, but multi-tenant our our our a or drives of minority small platform us. at

the the that's the company we're in always think world competition. at delivering focused best our so faster platform, and And one that most than we innovating e-com

Scott Berg

GMV. another PSR those kind help pre-pandemic? add or thought you like this those If from is the for RA, at helpful. do is maybe of can revenues, and to and to there you about there starting would and type than hey, say, well from driven that look partner a is continues revenues. out and more back But chunk Got talk what interest that looks traction of pandemic. by functionality And looking look obviously is is some customers grow revenues, see this we shift then to what a And payments or make were maybe you're this as in your years, maybe two of during follow-up revenues and it we your perspective, three

Robert Alvarez

mean, I'll the marketplaces, best of categories advertising, most just item in materialize it's into talking ecosystem. hard to omni-channel the solid Scott. of breed about it wallet XX we Yes, you with of about when in that's a long-term about is is tax, opportunity to But a shipping, if we've I revenue about And partners but opportunities think about there of that think today. past again that a all the rev that start big will we entered you think XX you to now market months. as if you I if mature. byproduct are go line way, list payments think think predict, there. big in our a with, we commerce. about front those the are our But definitely share as if on partnerships of mean, And of long-term. getting share in is

Scott Berg

taking my questions. Great. for That’s all I Thanks have.

Robert Alvarez

Thanks, Scott.

Operator

Thank you.

go Our Raymond from next from comment the comes or Please question Peterson ahead, Brian James. line sir. Mr.

Brian Peterson

Thanks Hi, taking and on the the congrats for strong gentlemen. results. question really

wanted I hit to on So international.

impressive. So that's the XX% growth EMEA in pretty

positioned about for talk success, merchants how and the region? to that you the solve You is driving challenges of what's some that think platform in

Brent Bellm

traditional part have in brands, implementations startups, to see a adaptability, that new are share. retailers, of is in about retailers, brands, is One favors I found And what and effectively. pre-existing relative do Northern than our e-commerce but are than of bigger in the businesses to have Europe driving little it. Europe they would Europe flexibility, we UK, and regions. relatively platforms, hired success growth bit it's companies work its gates say, new online the its we different overwhelmingly The other the EMEA greater traditional Europe, out Scandinavia, is the that Yes. that and United in headless in And thing Netherlands of higher the driven Europe of openness, a States, new we complexity e-commerce people the more team, that solution Ireland, is U.S. right in that with by in is we Northern right a where

we of as target in of can Europe the days and Europe, where what Italy, really, will strong So on from competitiveness websites there, success starting Europe marketing companies Thanks early Netherlands. East Eastern we'd Middle now us. of launch hopefully elsewhere. ultimately, announced to our that just well. it's from go do Northern Continental very for very we be And like can the of In is with indicative really world, we're continental great in serve the bullish the and the question. hope strength, that that really Europe, France, because to what We every and Africa part

Brian Peterson

lot to XXXX? upside quarter. And Great. what seeing will an where perspective? to are to of up Thanks follow you're I I'm pick guys click Thank this CAC one obviously, LTV kind the a really to that looking respect investments with ahead If get it Brent. Maybe areas can up the be curious you. in you from of

Robert Alvarez

to economics to BP, you better. get our know, mix shift as mix, continues that I LTV accounts even enterprise to Hey, mean, unit our as CAC are

drive enterprise drive seeing still marketing, so continues know, share much not thing and we're of to in that those know, definitely they're QX direct to line as you enterprise, it business And in small just with more -- in drive go hold segment. merchants we demand And, with lot improving accounts. And you on And accounts. how also and we're growth BP partner but for over efficiency our benefits held I'll focused in well. our our true market enterprise and and inbound true. very in motions ecosystem, is, the the metrics very showing One mid-market I to And, continued leads working a are that, up BigCommerce. also leads and and we're that through initiatives, partner, tech our they we benefits partners leads we sales. And think agency of seeing tech

Brian Peterson

you. it. Thank Thank you. Got

Robert Alvarez

Thanks, BP.

Operator

you. Thank

or Terry go question from line comes of comment next ahead, Tillman Our Please the from Truist. sir.

Terry Tillman

the and And guess then I the Yes. maybe for product Brent just looking front. question. at congratulations Bellm, echo taking thanks a I’ll add follow-up. my

there's consuming from then follow-up. nice helping they're seen innovation, their quarter, important last provide to of what have your you back Maybe terms Page And Builder, quarter that's innovations. new going how an that? on guys You just in a And I and each had new Brent, how storefronts? customers web color

Brent Bellm

releases feedback in individual existing to that's for now thanks And out one us was stores, It was great. magical availability complex being product just positive. to API's better and time. we're we and on and incredibly the the GraphQL more And of on available to general few only across as of experience has out received with been time, because All beta new adding components. that available to widget in making full question, stores available Terry. we've bug big a free, first for It's these the sort months April, somewhat get went went the going going pages, it has globally capabilities, been despite adding only it Yes. keep for because enhance to user

beautiful creating thrilled And feedbacks to we're things modify for code source Builder question. as pages the really web Page with a to so we're, that and been great. without go foundation convert Thanks having into the for

Robert Alvarez

to great hear. That's

Terry Tillman

for market again. minimal tailwinds. related product accelerating? the enterprise are is kind you XX% to there Yes. from even you're even enterprise to for the last maybe enhancements still is to this investments of just growth and into up Or RA still for in XX%, of accelerated year public up follow market not guys threshold ARR? Is lot a a and baking growth a have Thank And it rate then there go terms to you ARR Nice kind year, from that looking you're you still continue that of potential of job. certain

Robert Alvarez

pretty you north Terry. continues our at has accelerate. if just consistently. of our to AAR enterprise know, account XX%, trend, mean, thanks, That been mix Hey, I look growing past quarterly shift, you

ecosystem of our making this. we've with partner that to happy the And the very drive are are we're the made obviously enterprise product a investments So teams. the of helping go yes, driving lot was to in in this market very, investments I continued performance that

deliver consistently above past and it really was this quarter. almost enterprise to XX% XX%. year-over-year pretty And yes, growth So good

Terry Tillman

right. All Thank you.

Robert Alvarez

Thanks, Terry.

Operator

you. Thank

Our the of Ygal line next question Wedbush from Arounian from comes or comment Securities.

open. is line Your

Ygal Arounian

Hey, questions. guys, thanks for taking the

around volumes into thinking you're Particularly, kind will holiday. to comments partner and as We with XQ the the start through bottleneck how just we on continue revenue and how are volumes diving trend about, of pandemic?

a an that season as you merchants think strong it's that earlier holiday lot them So about from you're the strong constraints, going ecommerce for your expectations generally season, holiday are the for start a confidence holiday, be to really the to anything well? talking seeing sales sale carrier holiday for for of I speaking would give part

Brent Bellm

kind RA, it's that, relates guidance? you take of to the want so

Robert Alvarez

to ahead it online to we're you yes, it's have. for as we a merchants the I try have, SMB, know, no of our think sure. mean, I ramping and cycles to longer is to about When both must urgency ready season. get Yes, get more. the enterprise levels season. obviously seeing I, is e-commerce QX, for nice mean, seeing GMV for a holiday we're sales of get holiday down come Clearly, a what mid-market, We're sense across down

and of for next yes, back levels seeing by to the of So get merchants QX. definitely last transaction we volumes ahead just pre-COVID closer volumes versus a up the QX to year kind GMV in where in we'll XXXX. see pretty in big QX QX how saw to signups to pulled But quarter holiday in season things we're the back year. of And get

Ygal Arounian

kind or today? up be of maybe peak of starts new seeing that come the and or signups? to of kind of some maybe seeing to that as businesses and then thing, on. seen you've to selling about cadence different talk in maybe that's to growth, kind Anything and related on guys we those pandemic, months early footed XQ and a old – Is mixed all to coming peak or haven't a forward regions we of fold that as of your demand see Okay. that couple of Maybe Thanks. the playing board lot beginning the where businesses terms going forward think past driving continued strength growth the that continuing in in of kind of as new of over businesses terms and the online flat you a demand we in in we're and seen just and about out yet. caught And are the going the economy of new customer strength since somewhere of pull lot

Robert Alvarez

skyrocketed, serve. that the than much started Gartner, stronger of very as the of come we've drive and determine down all business. third where was whole that their a for and factor racked us evolved a What to to also The part and segment it materially factor it's from May, been get is favorable we of and at had acceleration before new its Fastest we and up, it bunch respond incredibly the response of it's helping about. how sales it is much BXB, And go instead way if that's companies, characterize, mid-market pre-pandemic ratings pre-pandemic. from I'd seeing which Forrester, the enterprises is, larger, mid-market credibility hard to further market from added how but that and the we Paradigm back had was reviews. for see, you really us of of peak, in when up trending that in it segment, our pandemic complex being before upper SMB, still still kind tailwind or all, larger making. by strength, slower enterprise responding picking now an large small public cares now enterprise. call relative was IDC upper we that that very, pandemic with all segments, these may is the it's you large now, strong And end the know, to into decision be Or more

Ygal Arounian

Appreciate the those last the is Thanks. answers. the way demand. can point drive interesting, -- That help pretty reviews

Robert Alvarez

Thanks.

Operator

you. Thank

from or Our comes next line Ken the Wong question of from comment Guggenheim.

open. is line Your

Ken Wong

of that for on account level. you some base. Thanks install have taking my question, guys focus enterprise again, there also the Obviously, Great. a seen new I from wanted activity amount to guys. good graduations

lag a PSR on should more subscription of how how is side, in wondering rolling? the that like, when about kind more just see a wondering meaningful that Just from Or will graduation line impact Just the we going uptake? the already forward? think factor does starting

Brent Bellm

All you there. Yes, There Starting. pause follow-up on just was I'll - let right. well, this. a

that I'll rolling in. an So SMB plan, on our XX an at. It's it's we've plan, remember But whether way it. it's Because work, on or gradual. enterprise months its already looked trailing adjustments the tackle it's

relative that a breakpoint over to or upgrade a we're where Well, looking it XX months. one And a sales they big a SMB them months? suddenly spike will the the push only have depends all spike So of trailing threshold higher does to one if month, past. month you in first relative were It take to their business's a Or to but month as plan? how an three the spike, business two was. and really spike before

thing RA, it's a would through you will over that So time. add? flowing gradual anything keep

Robert Alvarez

BB. No, that perfect was

Ken Wong

something framework line seeing, helpful. kind rough to you good Guess, you What's super about And this going for super, pace ARR about relative growth look or strong that sales of that that then expect of this, Great, how for should are the it think growth? a know, the really top to, with of that sales marketing any forward? what's think we way second kind should point, -- and momentum Is how to number? us we

Robert Alvarez

investments that or and sales displaces the of about talking you marketing just Are revenue?

Ken Wong

half it's framework are to Yes. just should, sales increase. that rough like be it any but that just in expect leverage, -- guess, ARR I and investments? of will something for or looking not that's something marketing we guys maybe The should and you growth, just

there So any great? would color be

Robert Alvarez

growth with we and going come. really to demand update APAC, in results to where the delivering our business we'll across investors We mean, periods outside we're for international a we basis. as did expansion years about they'll many, I have international the and to our market And that that teams Clearly, of we the do marketing. many a to sales in is. we're Yes. periods be be with excited invested think we're and the it's lever And where invest you seeing going quarterly happy definitely for on U.S. we're EMEA, the we're go leverage in where that

Ken Wong

Great. Thank you, guys.

Operator

and showing the you. remarks. this closing Brent over any At CEO turn additional to President, no time, I'm the Mr. for like conference to Thank back in Bellm, I'd questions queue. Chairman

Brent Bellm

a then, We to joining call. wonderful Yes. a you next one. to have on us. Have season. talking holiday forward Thanks, everyone, look Until for good our

Operator

Ladies concludes and gentlemen, today's thank you for program. conference. in This the participating

may disconnect. have You Everyone now wonderful day. a

BigCommerce (BIGC) 5 Nov 202020 Q3 Earnings call transcript