BIGC - Earnings call transcript Q1 2024 | BigCommerce Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the BigCommerce First Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to turn the conference over to your first speaker today, Tyler Duncan, Senior Director of Finance and Investor Relations.

You may begin.

Tyler Duncan

Good morning, and welcome to BigCommerce's first quarter 2024 earnings call.We will be discussing the results announced in our press release issued today before today's market open. With me are BigCommerce's Chief Executive Officer and Chairman, Brent Bellm; and Chief Financial Officer, Daniel Lentz.Today's call will contain certain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

of concerning financial business and performance for second statements future our our include full the and the business and quarter statements financial trends, and expected guidance year Forward-looking XXXX. and XXXX financial condition such be believe, intend, will similar words committed, expect, words. anticipate, These statements by as can or identified plan, seek, duty These not any as any upon views that at update be subsequent to not from results our and to representing matters as do differ subject actual to today of statements, expectations. nature, views reflect risks statements.Forward-looking relied statements only and should we date, by uncertainties and these address cause materially are our could undertake their that

over affect reconciliation other certain our A risks measures, the Commission.During call comparable results, to not discussion as the at contained and our to the Brent. on investors.bigcommerce.com.With measures, press in financial will refer we is me has principles. most as which website disclosures also actual the furnished discuss to non-GAAP accepted generally For the metrics and a other could turn of and please and our risks call, non-GAAP to been SEC accounting is we of release, also Exchange how Securities prepared other with financial material GAAP filings these in well the financial define earnings directly included in the our with metrics these and accordance measures are available that, let important that which factors

Brent Bellm

to operating has joining our deliver dramatically ability us.Over its Thanks the Tyler, flow. last business for positive and profitability cash and years, thanks improved everyone two

across and revenue to shifts and is focus the company. our XXXX, in team front efficient that growth, every imperative of As center

and improvements we're it to yet on growth to in of metrics we summarizing achieve monitoring remarks quarter. market, start I key results to improving, me Revenue the came confidence.I Adjusted up we but innovation exciting or approximately touch focus reflected my potential.Let bottom business, the year will financial pursue leadership urgency have X% $XX that an addition. and key a success by will the today in and on also underway potential with and how on We above this go full just growth year-over-year. just top million, results plans. unlocks line our briefly EBITDA over $X XX% finished good start product revenue. relative to of QX million,

points improving solid are start a we revenue to year-over-year.Turning cash We of importance year to growth line as a of perspective, recognize flow we flow cash a also than now growth, more accomplishing that. and had free our from profitably, percentage XX the on by top reaccelerating laser-focused the

we the discussion more originally up-market reminder, improved our potential.As as Let businesses, radically of to the detailed behalf our service was of we moved product years and as on have customer enterprise and complex CEO, improvements needs needs and successfully our we serve me base result. move midmarket a BigCommerce of into realize In have capabilities a growth of to business small customers. making are X a founded my

metrics enterprise world-class progression, these practices best three examples software As companies.I'll behaviors, incorporate describe to certain of that part and advance the of of must reflective roots of legacy now our systems advancements.

QX, growth. the reorganized development our end company customer. unified leadership their that have we and congruent around efforts end our and clear to end targets end business customer clear and centralized to under First, success In business and marketing, customer our unify introduce customer to teams success, structure success we President. teams and Sales, of ownership ownership

Feedonomics, business, have including and efforts and better up-market. improved our go-to-market platform internal the all oversees our goals reflect now to performance move President company PSR.Second, the product, Our across metrics

new customer the prioritized earnings last and top primary growth. our to on fuel means discussed we acquisition our line As as goals metrics call, previous

portfolio optimizing our the to disparate net and A partner are data pipeline. New of customer a will on and growth. on growth, strong system satisfaction, new it master is but improve Target including solutions.Third, focus prospect and and and of Feedonomics focus we systems balanced customer management cross-sell with customer data new retention, course, a sales acquisition gross retention, retention, greater now a customer net metrics and remains retention of operational partner management data. unify priority, now balance

our We are account marketing also for automation architecture, growth. CRM under teams one multi-product and platform and rearchitecting sales put marketing systems sales Feedonomics built expansion, our and to unified and cross-sell,

changes by and systems be these tactical expect meantime architecture. mid-XXXX, investments to in our making we the current are We in complete to momentum build

lead about and as are strategy.Travis this on greatest and associated as director means enable, customer experience our and resources costs growth and home categories a at in changes outset go-to-market we included and and transformation, selling Hess and Travis leading direct-to-consumer transformation Travis the potential illustrative and enhancements of our top for and years are seeing Klaviyo, excited partner on no company in to the ecosystem software pleased many investments enterprise the his exceptional will operations, platform traction He of and are offering of in leadership service Hybris and but world-class plans our and garden, go-to-market Shopify, served success, positioning than financial our can he e-commerce apparel, Rackspace, of at competitors, the their and drive partnerships, we expertise e-commerce transformation recently will success. sports We to by attention I'm competitive our year.These the our are help SAP target the boards enterprise strategy outdoors, managing becoming has these pursuit BXB. involving which go-to-market only including President. implementation, brings company.To more in welcome XX a new of and advisory they most and help worked Accenture

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high-performing benefits beautiful, product performance an a React rates Big performance, BigCommerce path do using builds Customers easier but of for want lowers composable platform I It as examples continue faster, leveraging requirements but e-commerce customer while performing great technology all agencies partners.I'll design the complexity benefiting inaugural as we health businesses launches X,XXX than easily new composable to of XXX a XXX innovation with Catalyst, a popular in technical conversion combines composable leveraging product speed implementation components XXX% and QX. scores and launching most also since of won't composable simplified. improvement aim using few making reference Thing we site our is A to architecture. latest storefront featuring development.Simply a other far extraordinary added site native arenas build with a Catalyst, its few XXXX. Thing; industry-leading Stuff to and both and quickly out-of-the-box.Catalyst developers mobile optimized White the multi-storefront theming and our Catalyst in XX% and generation of than Big of Conn's behalf a to a in integrations. more few storefront and of We through Lighthouse R&D and call investments examples front-end customer multi-geography on on out our UX, site stores set of our customers and highest brands developing Google immediate of client It behalf composable Next.js and industry-leading from fastest capabilities. provides expertise on beauty, headless, ecosystem culmination collection e-commerce more streamlined Stuff, for and featured to Next an Catalyst BXB hosting simplified Europe spanning innovation unveiled electronics, store BXB.Our HomePlus, storefront it in Modere, saw the the and Bestway higher-quality and and partners, area GraphQL point headless of the server to to to weeks we innovation the and of announced builds. next composable composable are experiences, version leveraging for on selling, is framework, industry-leading of represents use which cost and with particular, its BXC for and will major high of fit and be standards promise beverage, starting Stencil. food I agency on store and without customers world's our deliver continue simplest Catalyst of customers, and start ago, and BigCommerce.Another features, technologies. Brompton, partner put, our White enterprise realize complexity. in recent for shopper easy enhancements, after course, go Next here implementation, XXX BigCommerce's extraordinary in a make

the experience their this customers, Our directly from our service example and Portal equips and product multi-language cost content, of our configure centralized business, partners backend one point, manufacturers, open easy minimization. checkout also BXB Buyer deliver starting customizable of a experience warranty, BXB single unique experiences as can BigCommerce's all announced represents their industry-leading operational of buyer sale, suppliers, promotions. Buyer localizations methods, for enterprise leveraging buyer bespoke management.We while platform. The payment to Portal. pricing, every and enables entire and from Open such tailor efficient new BXB needs the wholesalers for lifecycle throughout the site can flexibility the distributors Portal functionality Buyer unique multi-geo of with By their edition's a maintaining Open-sourcing to language, their multi-storefront discovery tools portal. another to sourcing Customers Source and and brands storefront, BXB and

platform-wide open same of SaaS checkout has a to for Portal our platform, now the open done industry-leading BXB APIs e-commerce. as Buyer the BXC Just our brought for flexibility e-commerce and sourcing

also philosophy, For from data enablement orders. and advantage.Finally, Instant and Feedonomics order, foundation us, fulfillment the of the SaaS a of Instant and is of a fulfillment announced driver and major strategy, our delivery like Commerce and fulfill. services. Commerce apps of Amazon inventory, delivery competitive Feedonomics and same-day Open Walmart, It represents between we retailers which connectivity Feedonomics. brands third-party same-day by supports provides source product the marketplaces, catalog, sell they and and through the

For warehouse must and/or in-store pickup, or of the inventory within be held a in proximity delivery same-day service delivery consumer. store

our The sign, of in retailers, and to that XXXX that.Overall, year leading net explodes, by already in start holiday spending businesses in with is and the to a go-to-market will good from observations and the We see conclude period business. QX. growth. brands, our in Commerce Instant the is though Feedonomics inevitably which a that reacceleration, continued few We e-commerce well we go-to-market held remarks I across lower innovation. both growth operational popularity growing encouraged gross overall pandemic. in long-term I'm the before the and on to Consumer major XXXX consumer for transformation believe and capitalize QX, improve, initiating platform product up am by encouraging services the to we that connects our at resilient by investment during fueled spending on see transforming retention delivery consumption e-commerce. we're health and my capabilities markets, marketplace delivery it.I'll since industry-leading remains are and a aggregate changes seeing path and in As same-day than improvements our macro our environment signals enable encouraged underlying e-commerce rates the observed

stronger Our ever, our total in competitive competitors. taken thanks to is price by of increases than ownership cost advantage

and marketing, Our with competitive product continues significantly strong combined With can in partners. reviews to sales, achieve customers and by full and that, advocacy advantages receive potential to I'll it product Daniel. over service growth for strong profitability.With BigCommerce practices, and turn improved service, and its

Daniel Lentz

my our outlook for quarter will are also remainder focus, second we everyone, for good a today.During the $XX prepared revenue over revenue strides income was while execution range. QX pleased expected start above of services improve remarks, year-over-year compared growth Revenue for the and to continue just feel detail Brent up grew off outlined $XX to I our was APAC and revenue you, top our up range, we quarter guidance to exceeded business. quarters We thank believe in $XX grew ahead.In the cover year.We the the execution high-end was of QX, provide his our key was on advance of million, these the in to make and guidance operating additional million. and year-over-year well-positioned year-over-year. revenue to Brent, PSR XXXX. or areas are we upon X% XX%, and both while XX% are Americas results, the million, all the Subscription in commitment up our Thanks, prior Revenue with year.As and us remarks, in revenue came results XX% partner to just total in approximately up to in running profitable of of give on and XX% our operational and prepared the our our and EMEA updated joining non-GAAP a positive XX%

X% QX non-GAAP Our a QX margins, to point negative $X a over income nearly represent increasing was year million positive X% of from results XX loss million QX in year-over-year a to ago. just operating These non-GAAP versus XXXX. improvement $X XXXX operating in

revenue QX sequentially in give you QX.I services call the strong holiday lower last we planned where last spending we to the quarter stand. communicated to expected an on As results called strategic finish margins to X priorities and due out I first currently and in our update on partner want in quarter, operating

margin only nearly many the net First, gross he to retention QX focus we than initiating time with other success already so see years restate committed progress efforts the that What More operating to basis incentives continued made I I details and percentage QX of will digits previously. XXXX. X customer drive BigCommerce.Second, of non-GAAP will are and that improvements. underway any encouraging stock-based reflecting stock-based compensation and compared quarter we see and outlined a finished in QX on I during revenue efficient my to on grow operating more growth those improvements guidance and specifically, work discipline compensation non-GAAP basis leverage margins rates expense since across the mid versus prior add with commitment our at and QX lower is I that double improve won't as hard improved a growth. go-to-market and operating transformation, a expand our spending respect and the roughly XXXX. points have detail full Brent profitability. to year. single the we equity the quarter, greater in to first beginning income we aim we discipline includes as in spoke exhibit This XXX than revenue in well. on to finished expectation, year to

executive further significant increase a moved have We XXXX management's incentives to between awards performance-based portion and to stock of returns. units alignment our equity shareholder

As to top am improvements cash drive has all made simply, area, evaluate our discipline, our as accelerated to potential see growth we an position management. gains XXXX. cash not margins top the revenue cash rates flow. for continue did cash to and go-to-market to meet well. discipline with a efforts and improve.Third, puts Put have growth we as as in drive improvements That business spending profitability line spending to in I the to opportunities business to in committed line we rate growth look healthy strong rates even our in to this acceleration, the at very expectations and grow progress generation flow our encouraged of material

million to Our investments $XX $X X% $XXX XX%, around million, sequential account solid while to $XX $X year-over-year. of Deferred increased KPIs. sizable saw subscription and obligations, of $XX million. $XXX flow systems $XXX in flow deferrals accounts of annual this of was million, to approximately Operating an underlying year-over-year. from off million $XX $X positive increase, plan and approximately Enterprise quarter. million up was $XX with a million approximately growth along working to Again, year-over-year million, cash employee from from The year.I'll and CRPO, revenue current year-over-year X% up increased turn in to nearly operating prepayments million million in ARR software accounts controls $X.X and the $XX million. was concluded up have performance million, our or or a annual remaining We discipline portion QX an million million. cash from first $XX negative the payments apart in run capital ARR, are collections have QX, receivable annual rate, or start receivable. in and now was internal by ARR non-GAAP terms made while around revenues our That represents paying with

going Overall, go-to-market good off with our revenue, flow, XXXX see QX cash approach for forward. As line. reflected early plan. Gross average enterprise pleased high-level confidence year that as progress with finished results $XX,XXX, accounts, the over results of on to go-to-market non-enterprise signs the our Essentials I I to up in to QX or plans, financial refer reported mid-year results we we thoughts we QX, the builds on reflected XX% revenue a of share highlighted ARPA we optimism to or up ARR. the in slightly end ARR guidance, transformation. net to of accounts performance accounts which X% start enterprise criticality relative shaping to making ARR We're our as Accounts million, $XX total using and transformation our both of of changes which outlined how or accounts in move profit, year-over-year.Before represent account per start plans, and we and like for up beat was of cause end in year-over-year. QX, year-over-year. up our company detail At accounts, the X% on enterprise was the X% are retention I'd X,XXX the earlier. internal and and in XXX some Brent exclusively our

and times full the the guidance the and year.I'll second to investment cycle continued by our see will shift focus platform outlook quarter and continue now challenges effort year require throughout for XXXX. sales our and also We to team which in spending,

second year-over-year in For expect the $XX.X of the a to we X%. to million, growth implying rate million quarter, range revenue X% of $XX.X

we increases our year year overall planned due out full expected $XXX,XXX our merit is expect increasing that of translating non-GAAP growth with are than slightly rate our million confidence For between lower between full start the million, to we during prudent QX, $XXX.X QX income $XXX.X of full X%. million. respect with revenue income the guidance.For cycle a $X.X and to conservatism a Note maintaining to on salary year-over-year balancing year, outlook, approximately sequentially X% revenue operating to effect non-GAAP year based and to to operating QX. Note, annual our this promotion is taking spring be to good

the our full to which non-GAAP would like today. everyone For we reflects operating expect year, million million, QX.Again, full based thank between on also income and joining us year outlook $XX.X to through improvement progress for an I $XX.X

As our business start at over the Brent of profit call, to has years. flow last and notable said delivered the X the cash improvements

to Brent take time top the do is our your line in that same goal.With team laser-focused is entire the questions. and any Now Operator? of are and results, I happy to on go-to-market and that,

Operator

question Company. [Operator Instructions] Oppenheimer Ken first with from & And today's comes Wong

Hoi-Fung Wong

might for that mean, about going think Travis. being held guys that one the of just might market? changes about Brent. of hired some kind another be second, think should When we one how you, should I to sales you them, change in first macro How some think to to want in The you of go the to leadership in recently a of QX. bottleneck? I releasing here, there's transition have worry things BigCommerce, go-to-market And potentially we maybe we Travis back of mentioned that terms

Brent Bellm

decades Sales well of of including e-commerce, all Enterprise new Thom, They President addition the about as Hess serving as global excited our the our Travis the competitors. incredibly we're experience platforms, of top our in U.S. leading in bring as of VP Ken,

With were our we level. bolsters really including Americas, higher over a senior of unexpected down QX, ones the to a is it so single some leader the VP in And transitions, team. or who QX, sales

have full the X, to but addition with history industry in particular, strength in ever those in Now the of we our experience than we're with back Americas. had more

and the experience to on so leadership to can our And that bullish very bring the partners. and they our I'm customers

go-to-market us go-to-market going fundamentally, This a at sales.In think to enhancements. committed implementing tweaks any reaccelerate will year. new model. level true first I to of actual of to that last year the that and some best-in-breed are have help is President tenure But is model during and enterprise changes, come the terms we the Steven's end in we of

And it's only seeing year start we're like you so question. of trends are things this these And going a of sales.So potentially the retention. been it putting quarters And better net quarter very a you've new the see already prospects absolutely reaccelerating have the we and us gross asked that, starting all about in excited results of ago. couple would than gross right place, in of think retention, to forward this first that we're will and I

for that, thanks Ken. So

Hoi-Fung Wong

And then, a Daniel, just follow-up.

of KPIs. You touched improving on lot a

maybe a leading I Or this one CRPO another you but us of good I a growth? a in bit future the think for And wanted be we direction? into to up view steer would revenue as was this dig ARR should indicator choppy can XX%. metric,

Daniel Lentz

I that it Yes, say is. would

agreements enterprise go-to-market software you think what that but year and I that's think a ways, I seen prepayment to from in in business to best longer of X prioritizing this been has some been also just the I playing also not from of the changes we've involving X, our the bookings been much are and to point side, a looking here. say, been out duration, in really And the because profit last that priority. I've strongest on I the in to see in more contracts I'd we've of that's terms is customers. and course our as contracts, stickier the of in we've revenue, with years translation we're RPO. flow how the lot view, an practice contracts approaching And stronger cash and like what would profit revenue over say making key think

useful a as revenue. And us see as and ultimately, growth leverage we the at and flow to just that the of a been that the that I neither It's highlighted to you comes is changes The But confidence on not of we're reasons go-to-market indicator. making.And of metrics. for that described, really perfect deferred or better deferred these think a lot cash is really revenue look that other best where CRPO adopting it out the been past. in we leading that positioned practices, that I revenue a think is gives changes we to of bookings Brent revenue side. business deferred the lot really and going indicator are from see CRPO a strong are become better due we've we've capitalize health to start than in acceleration with where You now

Operator

question of with our And next Ikeda Koji from comes America. Bank

Koji Ikeda

I maybe up question way. Ken's on it follow and ask here a different wanted to

the it is sales efficiency margins, out good potential that organization, organization definitely for changes in sounds upward operating all seem did sales a And in some to business internal leverage. the and to You systems the here. on but some or does call changes also an changes but like commitment trajectory

money shifts demand are the if And balancing in leaving thinking how so favor? on not profit, table about sure you're making the while BigCommerce's positively environment you quickly

Daniel Lentz

that ourselves talking growing returns that we we're particularly a where to a be how the the while the platform are to can signals, seeing able We not is what I and rate confident areas that in to and where the seeing start strong perspective. not would on upward think a from to trajectory, satisfied agree to on think any really question. to can of there's a we the business lot demand We're spending, was would to on improving well.But and growth run of we're capitalize that are an thex as going cost. ROI we we do way to efficiently so There's organizing where we're in see accelerate so we're that really right that we think efficient the what why improve in in. that. just for most really with ROI focused position chasing and it growth. going operate you, revenue that that we're dollars from that at advantage manner say leadership see do with now I growth I take identifying efficiency Travis' we putting we're in And Great and we that And room on looking also capitalize in we're we're getting to we're that, we're I is say, balance. reason what as efficient revenue is really and it a back go going about we're

and expand going disciplined going to going going way. commitment this to are run That's to and business flow, that's grow a focus going We're to We profitably. we're We're run to margins. a to not our cash that's on healthy in going change.

Koji Ikeda

a to of midpoint. at there, guidance, your at $XXX,XXX what the quarter. vendors it's the Got I a first about a big it. look and other from we've the of out guidance for And comparing at it looking heard second quarter growth When also from sequential just follow-up here is deceleration guidance. on calling the commerce Growth

market in to So from your guidance just understand dynamic a conservatism? play typical the embedded just versus trying what's

Daniel Lentz

question. Great Yes.

a actions when I fact year-over-year the the difference that of basis is XXXX. think on in part actually sequential in period, the at had we XXXX looking both and the in pricing base

where bit bump itself and describe sequentially. the on think we're years probably So we're it of there, of of year, I whole. same-store and out healthy pre-pandemic consumer year-over-year a for terms very but I it we spending. think thus a growing sequential where we to necessarily, noise of on gotten a premium a seeing think past, get why more that's plays I'd deem are It's seeing QX not QX say, reason volume as by as resilient. basis, in signs far still a e-commerce encouraged mean, we're a versus GMV little in what we're There's there. and bit was And what a in why still you chose to I I I would versus we've that in little normal. part the as at

So to half making and platform also me of the changes I'd That bookings talking are see the and year.We're same spending the encouraging. into really, gives that that investment we've say back going some opportunities on continuing been of us about. optimism the on that's focused be challenges really

little an that's far. what we things doing a than see we've to so better area where seen So want

to to we're but expected it's There's a I challenge. changes year, be of why the go a we're way we start still. good making. just We reason that to have kind that balanced think the But a long overall, a making

Operator

next question from Canaccord. comes And with DJ our Hynes

David Hynes

Brent, on the think some changes, opportunity made about I didn't going to cross-sell that Feedonomics. think When that great. with the the you hear I out changes isn't the being me was case Feedonomics makes and called opportunity. for capitalize better it something there of

So expectations? like to question really business that has been I performing guess is the up

Brent Bellm

both can top what for the bottom as been the through it's expectations, beating enablement the to world. performed largest Yes. marketplaces competitors compelling us our expectations. high been globally continues of hasn't absolutely have, market well expansion channels. a to It's that both customers, our line Feedonomics world's leader, but and reasonable has would of is channels ROI time we Overall, all the at around growth above performing as true biggest have to sales gives the up deliver platform expected ad and acquisition, expectations. in leader have say been drive line argument what of ad a spending profitability. it and marketplaces line for the it both I largest which growth It enterprise brands top we would relative would none other what It's

David Hynes

Got for it. a And follow-up then, Daniel, you.

But improving in I it I've right? the net the look retention, improving comments first model. time ever gross seen on retention. enterprise It's at hear customer I count, declined the sequentially, So the that

So unpack at with can enterprise just, going you on what's customer level? count the

Daniel Lentz

key bit. Yes. When it. little end downgrades. that in I'm where mixing at good effect of keep in account we're of on is And not to e-commerce making not obviously, the mid-market a will we've satisfied improvements, looking we're project both seeing some part we're we continuing is And are a and that the basis, is improvements better. about making to that that doing from pull want an laser-focused and what the I that cancellations. lower the and well. were But see obviously, going on had net where from that we We've just satisfied on saw up whole, and enterprise. been it we're quarter. a we side a talking gross way -- mix of with retention go-to-market dynamics there. turn that But look had some growth basis basis focusing are the that we're the as at as on changes with confident We'll account Part we to around. be which dollarized we've as We're improvements also the up

Operator

comes our from Barclays. Raimo And next question Lenschow with

Raimo Lenschow

new having the lag I terms in running usually the the then the if the had of the are think terms Can And but organization that in all and -- obviously time -- one are potential, kind there's about on changes, full And there's of follow-up. you've of I business, that where of you've a at whole a the then kind you of, Like, of in changes terms action to journey? kind like done done where there's result. on hitting journey we we speed. your

Brent Bellm

mentioned or leader. the gross ] leadership as have we down And results which to Travis. last our of sales. most signs of we downgrades. revenue something fully. new X a seeing, the early down gross We're retention. we're We're That's seeing now back really in ability historically of we really positive real and in strength already base, support gain of comment, year, Thom sales to focused for Where gross to Yes. journey We're is incented already the retention. I merchant customer addition sales our [ in terms with relative retention U.S. full in within were improves in cross-sell on that on in and senior improvement also year-on-year not prior with in net the I'd in terms churn improvements to say existing seeing

all more instrumented new would that I have next in the anticipate to as of in And of X/X terms well were help of top both conversions and of the on so percentage put still actually they numbers. year.So how the come no it of sort and upside our if is to over pipeline a terms grow us in be go-to-market how as results both basis than results, we probably that motions appearing the we current

expect in all more quarters the go-to-market of out changes We lot to ahead. get a these

Raimo Lenschow

actually. the Okay. Perfect. that's follow-up, And then a it's --

about you'd we're done rate, is profitable the how full And growth? about how give a And kind If do as the like I talk assumption it, this when versus a you But once up obviously, and about it's think number guess you growth and because growth, at growing in congrats well. all like of do industry about think lot dusted? swing, me you're your can't that you you from then. you guide think growth like, faster

Daniel Lentz

on areas share we a in is the compete. market and expectation the to our in at ambition to premium and a we our based healthy where I focus where think be market represents growth to are are, growing choosing that

think leadership size, get run really, we the the I and hitting the a we're and of We especially and a of and here to approach that returns operating, unlock in XX%. ambition. We've to over that with have of profit that continues really on their the business really lot issue people at better investing and have that the we've the flow to our rates see that, We're of about.And their of growth the can and opportunity that, changes our focusing lot that look of have to we we go think that and and is that way try their here pigeonhole amazing a teens law think really of will unlock to that in And in that sustainable, our where numbers. good be runway growth lot there's advantage our very, care in for scaling growth for with take them work growth. them a the that can fully made trying where a can that not choose customers way to to the to a we're that, growth of and solutions shareholders. We for outstanding they things not think into and at where that's goal by that healthy us. way our very And into all excited taking the got ahead there's don't we're lot deliver here. we we're a turn that freedom turn back staff will business That we cash need. we opportunities when just large and business, that giving long upside spending we success you're and

Operator

next question Lane Stifel. at comes Parker our from And

J. Lane

classify over gross changes Brent, health net retention Is would how and the out both? combination more you rates you of called the improvements the prepared the reflective of guys that a or quarter consumer the in you in saw here? remarks or internal

Brent Bellm

or who wanted let's talked customers it, a e-commerce the And through a reopened. locked some we're was the a them that customers achieve are also On within cancel of our that just and in I when observing is and end of quarters profitability and last potentially retention, sales, over-bought focus that -- But shared of even profitability, the commitment goals.I secondarily, launch down the We success the macro for strong we focus basically gross had pandemic way across owning through and were as to service customer in think with the normal. to number order planned projects return contracts and on drought It's trough of interest ownership and post-pandemic of We worked working subsets so short-term about economy post-pandemic truly of in part unprofitable both fair stores think migrations of end. the marketing. BigCommerce. second economy customer real right-size the, their the to rates to during call saw we combination trough sometimes is thing the have cycle. then -- year high we're that cancel seeing what a it's a a

those to recommendations or quickly things. as X referrals customer a the now, at and earn so it's we time sign get possible right customer and every to job is help that's #X success so if our cross-sell, and least from success that growing get upsell the the of their want we our that, And of to customers.So as foundation launched positive combination

there's that. of but to is normal, returns completely as somewhat our one second control. the still to And within think from positive first The upside one we our come economy is control out the

J. Lane

Makes one it. you, Got for Daniel. And sense. then

'XX? your Just how the significant largely automation marketing CRM around phenomenon should we investments of think rearchitecting systems? is extended the XXXX And a or about that is and that to

Daniel Lentz

our into investment but mean, -- this. system. be big a that getting management I need not to data gets lot We're It We're master come our like shareholders swing a XXXX investors great material numbers. improving one big capital In that getting not it a really for or need of marketing really legs us. I material, got into worry point of things, our unlocks the to a of but all That's X not mean scheme to it about view. matters, and big it's it's automation it's going It's baked enough there's guidance. XXXX. that, teams out into our it not CRM. It's something flow matters so our very cash that it's sales We've that there's worried lot. platform. an that already a from big to it's about. of outlier of We're

Operator

Maddie comes KeyBanc. next And from with Schrage our question

Madison Schrage

would it ARPU if wondering opportunities, us. assume the should you ARPU about new growth, could wondering year. but you're was about of this you for cross-sell with I help how size go-to-market and could I this growth if kind thinking talk just

Daniel Lentz

Yes.

single meantime, the mid throughout our perspective our the -- that that part ourselves an to quarters. ARPU plan digits rest of changes I been and relatively making which I kind in that -- lot us in which cross-sell Obviously, way really, results financial that year account we're will from internal there's The Catalyst hold and ability cross-sell, stays out the several systems initiative. think as assumes building really growth, I we're Makeswift, do last similar take of upside us we're to of that success around growth year. gives mean, a think better we've as as the which But added changes the of the the give a we that architecting in next for

some the So through there's for time an tailwinds going definitely just and as into really and growth. upside see to going XXXX. take item us to But the itself ways we I exiting for can to play we're think year start take that numbers. ARPU see hold as to that that I it's

Madison Schrage

And org where leverage. wondering if you that a go-to-market perspective, about to And talk most complete to a or hiring everything more follow-up. any you you're seeing Great. complete the then I'm now? there operational do could guys need a just from more have is senior is

Daniel Lentz

changes and was of the were -- Yes. all by we're last would geographies, gone we've of When the and a improvements made on seen over a whether lot I just of say, side, through couple the pretty And the course low-cost where years, leverage contractors organizations broad-based. that reduced mixture felt bad changes. We've employees. also and company. using it's of those we've restructurings that in changes debt internal within mixture not It's of headcount expense. have high leverage in is

collections way and better. DSO has gotten Our

And we that we that have marketing a laser-focused something continuing out of a I that.From we're on necessarily do And excited on. big focused top lot leadership leverage because have really of spending. can the on is where really, marketing transparently, say success. at leadership something that an what we a we're the recognize and there well in growth and here that in have, out it's great and be we're areas. best-in-class, leverage side, it's to a to lot decreases of we're sales with It's line perspective, side what aiming couple think think that's think and see there, that about we not think happy putting So team get better can we're to and on the have can lot of better. And of in better and not really sales that when we we're seeing Travis to we want roles a on do I look also we're the we're putting we area may positioned on will in. that. We're side for but dollars really joins, we and We things, he

Operator

question Baer our today And next comes from Josh Morgan of Stanley.

Josh Baer

-- double-click to wanted the enterprise the accounts I account sequentially. on

little a Just wondering Is churn. having could impact? bit more talk of two an the about if you gross of the adds logo customer one versus

Daniel Lentz

from we -- balance new just to past. again, expansion existing is of little better On that and gross consistent long we exiting really We want run, in to of But was the than it customer see view. better in retention were in we a quarter, saw point platform where customer a about the trying amount The add are to between improvements good. the seen was a where it terms on results saw we with get we about churn customers. adds from more we're on where And the new dollarized we've bit gross logo of net which perspective. pretty adds new and retention, is a

the well. top about for great most And way so growing healthy the a expensive when indicator but leading I business, obviously, think talent, as that's also the of it's line

so to see doing well. And want we both

anything doing. And we adds. expansion overreact new a we're when around We're think, look it's bringing of the that, a and balance to looking We're customer with steady in we new or especially And the going reflexive what correction she at some goes to as get that better as do and leadership, with turn between count well. I at not and as we're so in count. have sort going good

Josh Baer

That impact Any business? that makes just out wanted there? And Great. to having the the on Okay. landscape. ask you're sense. then seeing an Anything about competitive changes I That's helpful.

Brent Bellm

to competitor their surprise. advantageous much already has a our that raised to the relative of us them. strong was XX% been cost position by I as our total last they're position. historically pricing it competitor beneficial came quite that TCO as ownership quarter, our that really, same only improves plus largest think as in It And really

and So not, that we and super we they love our pricing, increased have think competitive. offering is we

As that's to from considering and against interest incoming from that, when customers us, of rates seeing a both them win of we're our result customers helped head their both head. we're

announcement a Big to where of lead guess, We or released half dynamic.The BXC innovation one don't side it's segments and released I that's really first Thing it's be target the X features our first the of XXX from, in meaningful those other We in BXB were weeks as Catalyst composable world. our best year. I in than we're I our time anybody about industry-leading announcement, that see the was as innovations where are across on is being of new ago, really biggest So and ever platform would want competitive in and highlight that semiannual the doing in introducing with who BXB. this And more we think the thing what we in have. Makeswift and Next

expensive things. organization. the So to competitive go-to-market competitive And in relative competitor gotten our on to side experience we our enhancing bringing We're the the enhancing of competitor think product we're key on us. -- advantage we're advantage more our our with has that

in the board, our to compete the ability ahead. well bodes that So to quarters across

Operator

Murphy at Mark comes And from JPMorgan. our question next

Sonak Kolar

Brent, encouraging Sonak or in more bit or of us. for segments down to geos any I'm spending environment, the resilient, QX? to strength curious can backdrop which little drill that a Were macro is Murphy. on you pockets particular remains relative on for others Mark the This that Kolar is macro hear. mentioned there if weakness were on consumer you

Brent Bellm

to mid in it now of where not year and It's -- put I we where XX% year And sales have when year in a been merchants, you're were same-store than relative And of Yes. high sales, in this and more ahead it of for us comparing e-commerce. was where the it the has year third -- they resilient, it's the e-commerce the digits, in to this last pre-pandemic, meaning think couple XX%. well, of consistently us it's now, where quarter very growing for ones context year our with And first straight years, And own consistent year, used slightly the our to it's year the growing to was same-store double is a after year say again, is in last before. it's that well which to for we're ago it doing single and been growing solid. be. digits, where

than would the resilient, meaning So we even are it's It's or it's rates of business, that's our resilience strong spending where amazing inflation. that but stronger within -- consistent just interest very had something just consumer slight America the always upswing, terms what resilient right? to and on not merit matter an improvements in macro we seeing. that word America. been.In to happens economy, is an is geography, keeps an no It and Consumer

their now of each payment and Europe, countries relies frankly, our in softer strength released see different ability meaning functionality content multi-geography little of to own being macro been the different storefronts, on that. And currency, had its year, that in And it can multi-geography last the our Europe with product calculation. American-based a strength and businesses. think years, of we to explain so the because product, good for we localized is language, on continue than it's have is tax couple but serving as us Europe, in where methods, in full multi-storefront the we this

of that the talk macro would that growth help more Europe.So of going in in upside about in Europe, and of I that's sort functionality that's our is rate, to there growth multi-storefront the what reaccelerate less reaching about now our sort extraordinary to is potential think availability we terms do rates of XX% All the completion. now with to in us product released full being and

Sonak Kolar

ramp That's for line are you're very goals meet other about hiring how as business? to plans the Daniel, of you're Are to do some the the growth the quick then ask accelerate helpful. in kind business. Understood. sales the And thinking wanted to a some teams to generating there of and Or feel efficiencies you R&D any that headcount you I of revenue of growth? rightsized because follow-up, top

Daniel Lentz

describe rightsized. At this point, I'd it as

we're they're have think think what I modest. we headcount going would if to increases -- have, I

improvements future. we still we're growth top near hiring line get can dollars don't we in, that out think and the of putting in anticipate in that I ramping the better aggressively

Operator

And Scott & our from question comes next today Needham at Company. Berg

Robert Morelli

question pricing that Morelli Rob for could on think should the Scott. brand the Instant separate for Feedonomics a platform? we Is start. Quick is a SKU? Congrats the purchase purchasing it core about to quarter. This And How without functionality? Feedonomics Commerce on

Brent Bellm

picking which the doing relative an they into You consumer. source to a big Commerce, around platform. inventory what Feedonomics is the from inventory marketplaces, product And location when difference of actually Target then advertising the is synchronization that know to of to XXX to marketplace locally and and ad data Amazon is is have within between the know marketplaces, marketplace taking channel and have would that, core know is of as The the primary truth and The have same order channel count, get Walmart, to a them, just is the business channels the that channels they marketplace have and Commerce whatever Instant channel well. further like an marketplace to Amazon use. the so everybody have the a order Feedonomics complication they their purchase remind Feedonomics is, -- what marketplace or Instant location their catalog Walmart day up fulfilling of and enable to

Feedonomics solution. is particular pick at a need this the core going added variant local store to and service be inventory from or a to that serving this brand on of retailer there's so up able Europe or or when day a or marketplace a complexity.But delivery of same And or marketplaces deliver to a warehouse like consumer. in Uber fundamentally, the It's Deliveroo the a a just is DoorDash the still the

Feedonomics using it's solution enable the you're So case, use to different a core but it.

Robert Morelli

cross-sell Got quickly on it. Helpful. And then just the efforts.

or today trying within by, over you much two? this to achieve? is efforts year the you As to you think be effective that base? sell new high-level, the and of is balance with the say, what you're can more do next these between ideal sell cross-sell that measured the one where metrics How you're And company are

Brent Bellm

yes... Well,

Daniel Lentz

the On cross-sell...

Brent Bellm

Go ahead, Daniel.

Daniel Lentz

well. was existing our ultimately like guiding new to growth expansion more of not acquisition I that. about Sorry principle, going a lead existing point of a logos. it to challenging expansion certainly. ultimately add I'd Not where the growth. it's that the platform leads that's and better just referenceability, logos say, new of to XX-XX And think that to also I as progress our side, can we're be is going revenue environment. to powering think focused to as top past, Ideally, the been just new will success, but lead I to like your there. In disproportionately to logo-driven, get continuing way a line more sign logo which that in every e-commerce an It's better say is good strength on on in logos cross-sell between making expensive we're customer BigCommerce customers, to which better

And sure so managing We're we that on balance. we're that there's making our -- a that in really, think long-term investments we're train and really to teams we to focused I healthy that and systems this business enable ways to not sales need that order think way, that's make. need for growth,

Operator

today And Truist. Terry our comes next Tillman at question from

Connor Passarella

Passarella Terry. on for Connor

just priority BXB. to maybe Just go stack of back trends commerce that around the X takes commentary to to commentary just it wanted some want demand e-commerce BXB with to Could customers that to add upgrade as a for and to way the broader speak that revenue maybe how the does their relates me. on businesses I puts any you are sell additional curious looking and growth? streams. up systems And for as on around

Brent Bellm

and addressable Yes. for for XX% that's for XX% our market, the new a the platform strong in as of gross total very segment spend is of BXB past, us, BXC. we've roughly aggregate BXB XX% with and said sales, line roughly remains in which at

transportation multiple within we're add vice maybe industrial to versa, from and calculate our BXC things. hybrid that BXB not BXB of conglomerate, even that, we good of cases We agricultural companies customer that opportunity and just serve see companies, product BXB, the additional a any begin for distributors, geographies certainly happens with companies, brands so from use we're on spectrum to -- is the manufacturers, a cross-sell segments have who or a to right? industrial and our real manufacturers, it's is us a then they customer doing is they to note that's what large BXC customers BXC lot like of wholesalers, companies industrial business were we them BXB on if crediting when to Now, they're have add BXB companies, and doing that because BXB to all BXB serve. the or portion that upsell that that their and not full of use And both is BXC then coming additional -- to relevant is side capabilities, with expand that true fair to amount.But the want

is lot not a opportunity of of variety. the there's expansion BXC plus necessarily So BXB that

Daniel Lentz

very, just too, I point financial us. well, is as segment the of healthy point for is BXB One that, from Connor, add on very a view. would

GMV quarter. XX% win last grew of that rates. edition strong for through have We north I BXB year-over-year, XX% ran us mean,

an health point this a it's that really financial for and from share financial a we from competitive thing a just where The investment, continue area good really, we mix not area view. direction, really about, and advantage, of an So excited only, strong, get is see health I more in a grow as an and product well. market us it's to area that of but it's from

Operator

from Sahler And our Jeremy next question today comes with Jefferies.

Jeremy Sahler

but Samad quick of X I'm have answered, Samana. questions on for been Most already my maybe ones.

maybe that about that year comprise Or longer? about You Is accounts your a little do enterprise XXXX. that in called should of take for out XX% the ARR for think XXXX? expectations ago kind will a you by probably of cards still

Daniel Lentz

that take one. I'll

to I little take think going longer. bit a it's

fact just little macro-driven X.X much software last seen for true to all replatforming partially the talked a us. of as we've that on because That's the across we've that's as pressure of it think years. is I about spend the course of the that year enterprise bit over

we're business that's they think been #X, X, going maybe the thought plans improvements making track. ago. in and also years add, or X. Part think so really And some I'd that have part that to that ways We X.X on help are I back changes would our Essentials saw get Part that we I is lot go-to-market than the that business where improvements we're the of that pricing be healthier well. by lot retention and from gross in ARR of in is a driven changes, of of that portion also but as the cohort and on that fundamental health from the driven growth quarter. by part seeing X% of a a net just

be, the that can going in a I to and beyond well. start that healthy good plan growth that Essentials healthy potentially feel the business think, because XX% the shift that on of as still alongside out while portion to think is we get of think we future I that's will to business outcome I is and enterprise stabilizing, accounts, a well as

Jeremy Sahler

And useful That's us pricing someone you don't shorter maybe lever, But it. the can about the that's strategy? in if or asked I as growth about how color. a part on pricing. Got you're you as know hear Feedonomics thinking whether I specifically. then remind competitive of broader term

Daniel Lentz

We're makes for last going When do to we that, be to probably freedom of we discounting that new business. think where how with it's company in their going the are for going a taken are be opportunities the about as way What to look customers to several sense. going it's continue choose think company, customers. X years. pricing We've we to is course the Xx levels the just do, to to over the a or pockets, are we continue that the operate gives we to to pricing to operate best going way we in that this continue solutions take because

pressures way We continue an be in opportunistic growth. at success ability they success, a or structure the for successful that.What going be of their put offer an that's pricing is pricing them we're where giving to a our can offer in do volume pricing solutions lot stack freedom on to being that's the way, to good it we as them their see optimize than commerce help our while alongside of them, in solutions on our rather to business, good best make I changes customers our their do area that expense. that that for for business opinionated or not counsel we're the with whether going to that to grow in going them going a be think but theirs. how good for not tax growth only do offer and with make P&L, way the we the as do where payment but best to that focus on place and growth We're any so we those them not discounts think their that the negotiate that's into that to ramps is a we're well.So sense to but may efforts in we And advance solutions congruent sure can going their solution think also are we're side, whether with can lever, going customers in the using pick other our that penalizes them to

Operator

Brian Raymond with James. next from question comes our And Peterson

John Messina

This is so sales On cycles, John Messina one on just for there. Brian. a quick

second quarters, derivative in follow-up. mentioned there stabilization they the Or if elongated I'm is You've have the Have a or further? seen curious quick any cycles cycles? sales And improvement I then are you elongated the but few improving. past

Daniel Lentz

Quick They've the essentially been same. answer.

several little line Some largely quarters been same months higher, months a little across a you the going into XXXX. in a a some it, row but bit back for trend draw are bit it's are if low,

John Messina

on macro was then Okay. guidance. Perfect. helpful. double-clicking That And in embedded the commentary

what health there? prepared So get much how stance holding in to during curious, in is in at, baked do up remarks, consumer that have reflected guidance consumer trends degree conservatism forecast trying QX, you if weaken, Basically referenced to current but the the I'm you the outlook. to

Daniel Lentz

Good question.

of baked good We year last holiday we in that appropriate QX. we're What period in really, haven't we year. had going this the conservatism. a we think the assumption to necessarily is way see in baked saw period QX that I a really holiday in

see been said, perspective reason We the half I baked was signals looks it's the I partners growth, back where think mix manage to period.So as start half to our that over before we've into also skis a guidance as half one get that the the quarter but really enough holiday -- but if encouraging, guide look there's matter, performance you hit to our certainly reason consumer was technology spending for to we of our think resilient. choosing with the and why things the from a improvements outstanding. we're the to bit side half That's necessarily relative the our seen years as the bonus compared of past, reflective bookings guidance a at big we're to front It's we've a not on the past. mix to word why to a the from going back guidance that we again, in gives revenue conservatively, fact us about front of want but not us that, half reason perfect, Brent see But for which little back especially frankly, want continue of year. key is rest signal the optimism, in new conservative conservatism to see of continued been we we in some the you'll don't just

Operator

And Gabriela with comes our Sachs. Goldman from question next today Borges

Kevin Kumar

is terms a Kevin on in talk the business Kumar in and top-of-funnel of This new how performing partner about you can bringing channel Brent, Gabriela. [indiscernible]? driving and for bit they're

Brent Bellm

them channel. sales has our source equivalent they XX% volume, on deals an time, delivered enterprise of to into basis, and And for partner that. Yes. meaning back over feed The they source partner XX% enterprise about channel the consistently, we

an in the to of partner. are gets XX% range XX% collectively, So agency enterprise customers our who using

agency partners are enterprise success e-commerce. to of absolutely So essential overall, the

see also We that more customers partner who use agency faster an our successful and implementations. have implementations

our been the e-commerce end the competitive agencies industry So slowdown in agencies of best be they in the new the seen a all partners are size.The in platforms, best launches themselves have and the with working that industry us, serving we level pandemic. partner aggregate want or of reporting whether to and to since migrations they've the

little in competitiveness is of industry historically. in has them. a keep new been that's aggregate And to that on where and so hoping both the down our agencies. most so can the goal growing that partners And aggregate bit sort with successful tough shared it demand BigCommerce overall our industry. we're But share That's agency are the

Operator

concludes like I'd Brent question-and-answer session. over the this to our to Bellm back And turn for conference remarks. closing

Brent Bellm

half in of products BXB just Yes, enterprise to excited and about we and the mid-market the we're say, BXC composable. look of as competitiveness and back I'd the our year,

the that We right incoming with believe implementing Travis' from and befits as go-to-market motions and are marketing sales, enterprise-level the the now product. we service have also right leadership, --

now the combination our grateful That's line have the partners this solid and and to looking we're foundation can of have achieve Thanks. company. us forward who top into reaccelerating growth our optimism call what year, half And back in of on profitability. of give X we're the so that goal we of in very followed a to customers, shareholders and all those tuned

Operator

presentation. today's all you. attending call. concludes for conference Thank We today's thank This you

have day. your wonderful and now a may lines, disconnect You

BigCommerce (BIGC) 9 May 242024 Q1 Earnings call transcript