BIGC - Earnings call transcript Q2 2024 | BigCommerce Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the BigCommerce Second 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, Finance and Investor Relations.

You may begin.

Tyler Duncan

Good morning, and welcome to BigCommerce's Second Quarter 2024 Earnings Call.

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

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

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

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

non-GAAP our has investors.bigcommerce.com. in and furnished financial how certain measures SEC call, we GAAP we with these will website A earnings to well as metrics on to financial which During comparable other accordance the are also is measure these been available the directly at also is our as and non-GAAP metrics financial press release, define included prepared the principles. which of reconciliation in discuss most not measures, generally accounting accepted

call With over the to turn that, let Brent. me

Brent Bellm

us. everyone, thanks, for and Tyler, Thanks, joining

towards revenue goal priority growth, #X and progress our share to I'm remains updates during call on our efficient excited today. that XXXX Our for

of results. First, brief a I'll quarterly provide our summary

that product discuss highlight launches our I'll fuel Following that some I'll latest power Then the customers. for innovation that, our our growth platform. innovations of customer and exciting showcase

consistent Adjusted Finally, top under at EBITDA for bottom ahead year-over-year. of plans. X% next line results our with approximately at delivered just . QX I'll and or look finished up revenue. what's came in $XX million, million $X X% the business. Revenue

a of strong operating our success progress under We flow see $XX also cash highlight upside the perspective, are business results our had achieving from platform. our cash quarter and a that seeing on just We tremendous customers in this flow QX and million.

more to authenticated and checkout rate. announce approach. customer brand's integrated has allows to continued RealReal demonstrates process conversion functionality, luxury systems been billion largest phased, implementation the BigCommerce's that their in enterprise and marketplace annually. for a nicely intuitive faster existing BigCommerce. goods purchase RealReal result The for This high-volume implementations improvements apparel thrilled the online new fully the sites, I'm more RealReal $X and the world's BigCommerce's their than online in resale traction case, selling luxury customers and complex the in The composability, which leverage in composable industry-leading a launched on with RealReal, they checkout cart has shopping

architecture utilized stores just Also brands multiple BigCommerce migration with store-based years composable tax specific on fully retailers legacy legacy from their than a speed In reference partner, tailored just contract tech more and migrate operations. Bells to to with incorporate with in technology. sum, proud HCL agency from of Bell and Florida-based the can the omnichannel and which their stack OMS new chain the platform They payments, BigCommerce's successful months catalyst of for a their heavily XXX and modern launched showcases to requirements. shipping BigCommerce checkout Manhattan unprecedented customized Vercelfor-Hosting, DMI Commerce Bell complex [indiscernible], remarkably conjunction achieved Notably, store signature. from in department history. composable XXX X

our In architecture. JS this react-based case, next Catalyst, and

BigCommerce As new happier, independent a people on largest athletes everyone commerce has retailer part of fitness checkout beginners. website. running catering through conversion, unveiled order BigCommerce. sporting our website wider experience retail project, healthier a our lives their Sports partner ability elite migrating customers. fitness best goods, U.K.'s online helping deliver digital significant dedicated transformation and to leave shoes composable their to and the shoes, BigCommerce, to Sports improvements ecosystem value enhancing chose from shoes Since sports of shoes is and has seen operations e-commerce modernize to to the Sports to average and for in completions,

distributors to BXB of manufacturers, segment moving strong number Our continues to momentum with BigCommerce. suppliers a show and

medical know experienced efficiency like stability greater Leveraging operational example, our issues. Enhancements in for BigCommerce's costs platform stock Magento has features, billion BXB to to real-time QX experience significantly BXB from in and with technology in escalating $X.X company reliability robust sustained and visibility their For has since Innovus that a boosted I revenue, effectiveness, Innovus migrated growth escape market. platform migrating. and positioning customer the

user a a to impressions, Feedonomics of and affiliate accessories, improve company renowned such tools. keyword [indiscernible] BigCommerce, & more and optimize They brand social, handbags, retailers quality security. welcome progression selected their increased Dooney improved which turned data we driving while management goods upgraded optimize enhanced on and purchasing for as revenue. Patagonia, major and Melissa QX, manufacturer to In content Faherty to and channels. improved existing management brands their performance other superior leather funnel data product process, retaining Additionally, streamline marketing precision known Bourke, and channels across renowned and Feedonomics their its Doug system, relevancy and and luggage search, & leading Google

and the EMEA progress big but flagship in latest of the under ability North the segments. in and their industries of of customer by approach platform's exceptional America. April. annual to deliver of advancements growth across team various next BigCommerce, month Summit our this showcase been our excited Austin, proud encouraged Big and at to in Sing illustrate historically with in stories performance, Summit, our results and partner product achieving summit has these flexibility are banner a Later we're customers that our Big our Big event that at I'm

to Summit the customers expand also prospects. welcome and Big will Americas We

industry have thrilled as We're EMEA announced of integrations e-commerce we event. April, and At thing. speaking Borough innovators like over in features at the new XXX Big and inaugural next leaders Walmart partner Summit the the part to innovative like big

While I won't a list, to like I'd highlight few cover the releases entire QX. from major

launched closed customers' with for with a our selling additional expanded beta a enhancements we We for multistorefront, full international After features multi-geographic launch global with XXX functionality. reach new over soft QX. participants, and successful planned

to in allows experience. offer a to brands their retailers multi-geo checkout storefront, different experiences storefront for local select preferred now regions Our unique per truly and enabling offering shoppers

translation. complex Additionally, with Japanese BXB the and After our as we roles last in by portal This sourcing of supports in quarter, for to Fujitsu, open highlighting control next we're panel unique the option the strategic partnership permission structures excited introduced language a workflows announce an our enhancement buyer automatic and as storefront supported BXB in come release, management. and businesses. our custom organization major BXB

this customer business For functionality controls purchasing oversight, improves and buyers, and operational loyalty. satisfaction and efficiency

Gemini commerce leveraging which generative month growth use big this on big being AI with is are like more enhance tools to AI. to updated powerful customer Google's copywriter, AI We technology

Google In Big real we product AI conversion value generating in high-quality, Later AI product personalized the copywriter descriptions. beta time suggestions year, thereby for high-performing launch to launched order highly streamlines to in rates. BXB workflows time, offering planning assisted we July, product save shoppers by increasing powered recommendations, and AI-powered Generative quoting relevant sellers. average AI the of workflows are and and by also

increased to AI utilizes Tetonomics impressions Patagonia and and keyword optimize channels, and subsidiary Our major relevancy like improve product Dell. for revenue brands across driving more data

integrate acquired effortlessly creative enabling content. design Additionally, our drives generate Earlier and list, visual accelerated checkout users to year, announced Fastlane, with shoppers password first PayPal's platform conversion Make e-commerce BigCommerce site in Swift, which to is was publish rates. recently engaging through AI layouts page this nontechnical we editor, the solution, speeds higher and that checkout content, and investing site to

customers and excited to product recognition quality our become in this will awards. industry August. continue that all In receive available feature to of to BigCommerce's share innovation capabilities I'm aggregate, U.S. and starting

in second of highest in for any earning for BXB and a BigCommerce as achieved BXB platform metals IDC the the MarketScape named review, commerce leader gold worldwide in mid-market For Paradigm growth. mid-market headless for in solutions, combines commerce the of count us out In commerce aggregate the scape platforms most applications enterprise metals score digital the metal and digital the year, BXC a categories. their us BigCommerce world. the market a worldwide enterprise recognized IDC consecutive also leader XX and received XX perfect digital in

unified of Travis end-to-end making our acquisitions, update to the go-to-market Hess. satisfaction to Travis, and of we Under growth. have like the an customer, now under the improvements President, and new leadership including I'd provide ownership we're changes

seen improving internal we're of we results in drive pacing by gains retention quarters continued cohesion products our processes services We're in platform, Gross expect operational our efficiency customer partner plans. Feedonomics, metrics go-to-market ecosystem. the net achieved against expansion. improvements retention, rates As the e-commerce sales, well and excited success and and We've and to encouraging already are result, core ahead. inclusive our in Swift in and a of Make multiproduct and

relationships systems we're customer of of spend such WPP as customer of building expanding Leveraging Travis' and improving ideal efficiency refining on and the we're profile definitions. partnerships, acquisition, integrator network terms existing Accenture, In from by global our targeting marketing EPAM. background our

our have our We help ability businesses and are our grow small segment enterprise into business offering. small stabilized improving to

capabilities ROI. streamlining are and drive to on transparency We our revenue go-to-market effectiveness spend operations

improve operational year And in profitability. share plans looking half efforts integrating the coming of and in quarters to plan latter We bolster details as efficiency. line progress more top we to further tightly Feedonomics in and continued are results. improvement make and Swift the ahead, I'll achieve cross-sell growth the more make teams we commerce these improvements on to

of I BigCommerce's back Looking business momentum. about toward half the am the optimistic year,

to are strong are operations, profitability significant support, positioned and complex strides, our with large on products. Thank updating We I are go-to-market your earning accolades our growth to you to enhancing winning look continuing reaccelerate and revenue for coming significantly deals the while progress we cash quarters. flow. improve in our for and of By we continued well forward strength the customers you making

turn With Daniel. to it over that, I'll

Daniel Lentz

thank and for you, joining today. Brent, Thanks, everyone, us

of $XX for operational our areas approximately year-over-year. million. updated was $XX total and provide During my and million, QX revenue partner grew to and focus revenue was QX, offer detail $XX XX% remarks, XXXX. to year Subscription million, guidance PSR, X% In prepared over cover QX the or while year-over-year services on revenue, just just year-over-year I'll X% full under results, our up key additional up

X%, the committed up X% We was up revenue and was Americas to to EMEA the business. in remain profitable while operating compared a APAC year. grew X% Revenue growth revenue prior

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

As of at the on on year. the give the earnings I we where called X did I strategic out want update call, priorities with we stand an previous you to beginning the

First, saw QX further sequential QX, to and had we improvements made with plan. financial commitment gross revenue QX consistent efficient net retention improvement growth. both in we well, In We drive in as from our a XXXX sequential XXXX.

remainder XX% We up than in as rates and higher gross retention year-over-year. BXB, well, XX% ARR the with BXB the retention more grew healthy are seeing than BXB in year-over-year finished see particular, than XX% growth strong business. We in tracking BXB GMV of more QX

top Our revenue in are Travis' are in are seeing taking we and goal under so leadership the and and we trend actions XXXX retention line to far confident about the reaccelerate build we are optimistic momentum. to is growth,

our go-to-market QX, improving to spending results sales we ARR recent improved end investment efficiency our so in across sequential exceeded spending operating on XX in efficiency. software lower committed profitable we and our improving QX did high laser-focused of tightened operating platform our expectations. In and companies, growth. many are In modestly seen largest delivered enterprise as has we Second, quarters and Like SaaS the industry. with growth non-GAAP months, in guidance leverage deliver income we marketing we've particular, go-to-market efficiency. other

earlier, As this Brent issue top our addressing one is of priorities. noted

management cash Third, operational we discipline. and focusing committed generation on to healthy cash flow by

favorable in continue to customer month achieve month BigCommerce. more to for existing We terms success contracts our legacy from base payment transitioning

operating XX% reflects in As a for That in year-over-year. XX% accounts. a also the a over terms $XX million increased a deferred substantial resulted by seen quality million million revenues million increase quarter-over-quarter $XX improvement our year-over-year million. in in improvement Deferred we result, from enterprise improvement of of to upfront the just of revenue increase $XX our $XX have year-over-year have contracts. first in This XXXX, flow half payment $X has cash

non-GAAP concluded sequential approximately $XXX account ARR QX I'll to nearly KPIs. approximately X% That of Enterprise million, year-over-year. ARR represents a million. turn year-over-year. million, our with now X% We an $X $XXX ARR in was up of growth up

X% QX, end X% ARR lapped we or of small our total company Accounts in our with plan At As of essentials up slightly accounts of year-over-year the as business adjustments enterprise base QX, using XX% enterprise the million, year-over-year. $XX XX price we end represent period. ARR. X,XXX exclusively finished down non-enterprise accounts the over plans accounts or of reported the accounts,

account per accounts revenue average or ARPA enterprise X% up XX,XXX, year-over-year. for was

with in charges guidance, inquiries would associated of to to like that I interest alternatives and on BigCommerce. in incurred move certain GAAP out point inbound various we our include results consideration Before

an of debt. we forward these alternatives, elected of the our Following to move assessment restructuring with

part a have we announced October and notes the our of of existing convertible of our the October due a large repurchase notes separately, XXXX exchange of convertible a of portion due XXXX. that portion existing expected transaction, As anticipated

our investments the We maturities. operations XX, due in better October in decreasing and this overall streamline dilution. and rates instrument debt and intend improving further reflects of optimizing the new both shareholder our minimize business to coming new our structure meaningfully confidence and shareholder with long-term of value. growth The convertible maximizing goal For quarters to profitably investors' notes upside of the leverage intent

guidance quarter the upcoming and and for I'll the to outlook year. full our now shift

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

a of approximately expect to growth For million, between year year-over-year full the XXXX, revenue we million $XXX.X X% rate $XXX.X X%. to

For $XXX,XXX non-GAAP be to income QX, and our $X.X operating is million. between expected

income $XX.X the expect operating between non-GAAP and million. full For million we $XX.X year,

confident our closing, the to excited ability ahead I'm In and prospects by seize opportunities of in our us.

to momentum our and platform to objectives. our opportunity to us and provide We are value profitability. Together, Our and growth drive strong with deliver customers, robust future well our team's navigate in holds. remain that strategic innovation, prepared relentless sustainable the our challenges unwavering and we to the dedication commitment exceptional reach achieve

take With any that, questions. and Brent I to are of your happy Operator?

Operator

[Operator from The Raimo Lenschow Instructions] with question first Barclays. comes

Raimo Lenschow

on it that pipeline, we're and of that just about the solid terms that top into but of Congrats the first quarter. up cadence, there's and then the also Like how a for show that in will you think another you kind the take? changes in My when of deal the were closure journey bit question revenue the will do changes if on how kind was of think a long translate funnel? that like made taking, go-to-market get us a little steps

And a like should the -- might then not like in as of up know debt And terms give from when be it. just -- a show in investors. but I the on does I about I it how a side, had us can't questions closure you few give the rates. the we of good think kind numbers, precise framework of --

What You're rate convertible higher a drove coming swapping it rates waiting desire of down? into much X.XX% versus interest kind to a like do until that now vehicle. are

Brent Bellm

Brent. Thanks, Raimo. It's

we when call, timing terms X As a on made of QX that QX. already improvements Global in We've in and and would that President gross you're seeing terms coming result improvement in to of the I and the departments. Travis sequential with seen that, net in a seeing being ago will might getting of reminder all we're about his keep as in changes new months operations. some say go results in Hess, on started market. focus to more gross changes our predated and in a net better And optimistic internal of changes that arrival of retention metrics both retention those start

and who in believe disparity in of area our of especially we're the I and see tech quality recognized second improvement of the is the third-party perception there's under and market. in long market. by evaluate a that major brand between A awareness to analysts that positioning leadership authorities strength been change and our it platform, Travis' going as the

how position on and So to us message that in BigCommerce incumbent we gap. to it's make close changes

of frankly, and messaging One closures big live of positioning, the yesterday. that went

top-rated our you control, out messaging. I'm content website you'll to the the gets and for those customers as it is as business, the an We see and and will if the the backed I'm proud between long offering that not that, essentials below is optimistic in I'm see So it the in says and XX% rolled metrics which improvement in of coming as mainstream of go We're the night split last Essentials in group design. months offering, new positioning businesses. as business We million market small result up. GMV hopeful platform enterprise improved our online. website, growing our And doing in quarters. small XX% what typically you're adoption positioned e-commerce new viewed for in $X that and to

Meanwhile, right? later would are market. against the board, more And to changes. refining on messaging an customer have not that But enterprise and the impact get globally, We're we of we a also something doing. other allow spend changes definition He doing in team we be will that of and e-commerce market the couldn't that come are board the that. I suspect our make can are the refining visit that profile, others into me say had go substantial. changes but may the that know get and in across bullish we'll I targeting marketing deeper in those I go in to to keep I questions our quarters, first coming ideal lot

industry retail who our We conviction and part in market confident. world see in career and are built the take who e-commerce, see are are that between I'm leader of and platform. does all the market to competition the And our globally. have have that growth in in I'm offering evangelize going it veterans to Tom over sure very are commerce best to ways we're competition that. and and Travis, whose people that enterprise truly their us to become know careers and eager true all the closure established e-commerce more at the parts time, come Armstrong, in we the bringing and established the enterprise time, in people of and Daniel? quality adoption of big

Daniel Lentz

Yes. And debt, then thank posing for that. I'll take on Raimo, the the question you

I deal. with a order the strike is price view, we the collar point a of factor new to and how the we good that get do of cost think note due. we notes wanted so we in advance yield, did landed what finally, there where market we a of debt. as on XXXX lot where in We the the two, of our wanted to job are risk lower balance and to market we issuances effectively very are out restructuring space in execution the in we shareholders. X a so view in much coming maturities we of this net the reduce paying We wanted minimized did we debt, line to one, negotiated from the -- new once well in wanted a strike of really in that dilution potential overall cost capital feel point on to, doing, really And of way price -- kind approached of you of accomplish. leverage. Number to the that. It's objectives Number from the wanted our of to net

that confident increased basis it rate. we're such does we feel lot think in intent with it's the very interest that. in the that the come that cash where market seeing flow, that So from interest and also to also way a long-term and along reflects we're this a It maturity so can way we signal got that prospects here. And we improvements manage minimizes costs a in of of we were ahead risk competitive a that

Operator

with The next Ken comes Oppenheimer. question from Wang

Hoi-Fung Wong

of I'll I more. strong a Brent, I offer Fantastic. to particularly in segment. that your up in? fact think characterize that when you as take to And the on the with looking plan you you lean that you dig that refine areas notice ideal BXB pair your little BXB was are a guys to Would customer but guys couldn't that profile. you help segment one

Brent Bellm

Magento not I vertical, a very professional brands, distributors, selling XXX%. business customers, emphasize and would or of BXC manufacturers, commerce would much services is in or range wholesalers, I firms use the includes cases. obviously, the single is to And emphasize selling buyers. day. also their that their wide very is a of like itself is category companies wholesale course, to It that back What was BXB

We are broad-ranging BXB a platform.

do a because quite fresh and an you out yourself. And basically lot have approach, have the that there of is which each a X we functionality the that innovative portal those to modify user of with experience old that modifiable and And the dated. world serve believe our portal, most and attractive, in use buyer open now segments We with modular we usable. of BXB can buyer and especially is source, extremely our cases is competition in and frankly, that

going X that bronze and what competitor a X combine, platforms won And the combine, and platforms metals in to and through deal for BXC us right XX customer awards paradigm year world. an in about mid-market will profile later. me or gold, on out ask we of platforms. a big on what all goes combined BXB he But an want has the us. the in for was really essence, bronze. e-commerce gold each fun now Olympics silvers, is, a for very X us And So with in somebody to calls BXB there enterprise is a Paris, the And year, BXB and every categories, for else the metals that's Olympics something I maybe finish fun where mid-market ideal of silver question BXB as

have So the count the some. in best been the category, we but we the platforms. tied there for golds aggregate number but couple fourth every points By the enterprise we gone basically in time of is evaluating away even a one, at from most in having X We mid-market won this only overall being out highest Olympics. that's metals to have expert and basically increasingly platform in of BigCommerce were for one world not X point a featured rated is And enterprise. for the from very businesses best consistently mid-market that best second full ago BXB and place. that the years among the very, won

opportunity as is that So in I'll There well enormous but in BXB. another maybe question. BXC, for save

Hoi-Fung Wong

earlier. to kind what Fantastic. remain of independent Daniel, led the context. getting little color on a Can conversations? entity? you the Appreciate decision And inquiries inbound more alluded to those provide to perhaps you an

Daniel Lentz

there this, appreciate time I how to the Obviously, will least some some there there like are little from on are for at question. recognize rumors you time. Yes, on much We to limits that extra a comment detail but circulating we topic this. that as be provide on I'd we're can this to

our prepared we've this Board, is stated in those and stakeholders. investors with of that and options. the the the great company upside does interest a as inbound upside. a As in we our We see And remarks, evaluated received lot company

potential the Board business. . is our plans that and maximizing will value, meet revenue of focused operating shareholder and the growth we're drive Our confident efficient on

Operator

question of Ikeda The with comes Bank America. next Koji from

Koji Ikeda

your Brent, customer remarks, as of about talked prepared X big wins. RealReal you the In

us So and sales and and wondering sales traditional does implementation. It cycle through I complex a is to such a you was implementation if very cycle it process. marketplace, walk pretty seem big could that imply

were that a little able how So curious bit deal? more win to you hear to on

Brent Bellm

correct. you're Yes,

background, primarily it. than, it's as loves billion I think the wife XXXX. authenticated is it. the I in My GMV So largest online goods, more luxury in They about marketplace for do on RealReal $X.X consignment, world's sold love

approach, cycle. lane RealReal quarters it let I'll So make observing don't large a migrate some, it's there implementation. sales There's approaches latter the are know and a in over tech. site. legacy terms replace what approach. we're but The I is typical implementation, was indeed is in the an how them then there gradually my in to enterprise components work and ago, existing And out I'll enormous certain now, of time. then The market picks, a X many componentized, rip bring then and that me RealReal swap chose with

than release, commerce as said, for the observation in of big so time. many would the the But and using and bringing in surprise perhaps. cart over And is press to with replace they're We're checkout industry at rip time. go and incremental where seeing a would Bell's oftentimes the in make, more this. in to lot highlight market attention the should components a this intention far faster experience a I I And just people pay of the

legacy a modern now rip X most stores they platforms, months. been staff one the WebSphere, HCL, modern of did and and on to legacy replace, in CMS off at got on their had across BigCommerce and and IBM of XXX-plus stack multiple of very Florida, a brands Bells legacy and Versal

the that We've retailers or rip and great record. is in X less, Now breaks other really white store-based U.K. of actually do and had have who thought really It possible. in stuff Francesca's but like the sort replace months would do X extraordinary. was to months in it

as more the experience being we we of modern get and and strangled that there's later. a XX% their model the And had industry because the can takes be on do we're ever big, are cost phenomenally we that important that cart brought So much very hope tech, time. has with been they to by pulled by through to who start RealReal with business user years. legacy cost have in overall can have can checkout still platform off of structure the say conversion legacy proud a flexible X.X in platforms just to realize that that and go and time also that best who store-based And most on multiple simply this been I structure tech better short to is things off one retailers come radical so period than a explanation, lot who XX%, very the experience, sudden, But transformation in I sometimes notice that do really is on with a slashed one now record a where of businesses quickly all in last and enterprise extended year, should before.

Koji Ikeda

to did maybe Got about stack many and there's the look the it categories a wanted would as here. to BigCommerce, that follow-up different the PSR I simple rank strongest ask over quite thinking want perspective, maybe it. we revenue, When ask how to vectors months? clear, think as Brent, growth SMB to enterprise, one But business, growth Super then I feel BigCommerce. about contributors XX at from next you drivers those you growth within

Brent Bellm

about of successor we modern can or I it growth BigCommerce Travis' it a essence, And especially business. as time taken that was the custom enterprise of that believe, showcases. go-to I'm the time optimistic potential We've the market with awareness the software that unquestionably, leadership and I what tech in positioning, been can new as the messaging example way the with but the website frankly, that competitive whether quickly and would we is enterprise area us complete advantage in that that I have the Well, platform legacy now establish to it the to tech past, stacks most our the actually really quite the business what just on our and has the But up giant our positioning saying do out small enterprise argue to in ahead. is very replace we our growth. legacy can best, world, some time, been giants and hasn't now drive that and offering Bells fully in for really record years do will messaging, of the in mentioned.

So solution have complete things a else we it's that nobody do as that really can competitive now enterprise full can. emerged

ahead. to driver be going our . that's think I the years in

Operator

from question The Canaccord. with next comes David Hynes

David Hynes

you bright seem spot over still I in market? in was the that it's what's wanted realizing talk growth of [indiscernible] about a but happening relatively bit there of particular last stalled execution has couple there small EMEA quarters. ask a it in did to Can business, just about a the like part Brent, that

Brent Bellm

the X people things that's European of lot our know, it and forever, optimism American forward. is in has as I not around confidence X just very and been me that are do I growing the a of control there can't expenditure state if And give that specific outside as they, term, businesses, inevitably, the prioritizing profit quickly economy. think even of as are that right? the short will economy, The Yes, going minimization. turn

complex come And come the transformations. with and provider, back of to countries of the demand that -- say use the it selling, in backlog. multi-geographic of European not selling our migrations, we're the with quarter, is couple payment When case a going into feature see off want explain to do included complexities is call BXC language the storefront, capabilities. the a rolled the catch others extreme we of I and different the And and complete checkout, early It stages different country, complete multiple some years you're put let's front that to pricing brands, a each changed plus in feature the of to language, multi-store for modernizations businesses And growth would excluded. I yet a complete the most our passing have was partly rate company a within us for confidence. for migrations, get thing maybe pipeline and changes, companies gives out provider, eventually, different to completion and tax up. up BXB. down different our it's do The was came that that with every back shipping control, European it feature that building starting it, need was be ago, there's going And why you

for that of follow-on complete essential where multi like This capabilities. Having don't currencies, many competitive ready of we complete have strong is set is functionality live now obviously this use who these the other has areas lots different have with us now couple have of and taken countries sort platforms that that in languages, a is frankly, functionality complete. functionality cases that and build of fully out of established and and are year. multi-geo to being with implemented advantage And payment a cetera. others years, a for that to are storefront we et SMB across And businesses rock multi-geo really selling in Europe preferences, against Europe,

there, So functionality. as were there's that functionality for of rates have explanation ago. years Europe can very my new own sales a market that team in installed would And as very our get that the take we lot now a few this is tell for growth up primary there's back you, to levels waited high much they we a and confidence gross to

David Hynes

the around A positioned growth BXC follows clear. difference follow-up on was BXB impressive. question for Daniel, Obviously, in pretty Okay. which PSR to perspective, GMV is Very you're you, a how there From BXB. any GMV? there versus monetize Ken's

Daniel Lentz

Slightly.

fewer which on little and on healthy PSR rounding is and are our improve offering of on we rates that side. out But and a credit to transactions also BXB, BXB, there such confident is than BXB in potentially our . bit obviously side, have out building on We the the be that we're card PSR particular, even PSR. to BXC in on also different overall payment going able maintain we're continue I as in feel solutions, we're take grow BXB, to seeing that the

Operator

Morgan question Stanley. Josh next comes from with The Baer

Unknown Analyst

Baer Great. this morning. Katie Josh for This on Kiser is

advantage? leveraging a competitive industry capabilities to spoke be more differentiated customer AI be are then of You growth. what the how peers? may have a becoming relative might in table stakes enhance get to And helpful relative sense your your your to you to would to where It e-commerce AI

Brent Bellm

a Yes. most e-commerce, Feedonomics, assert is I impactful world and makes in entire we most core the In their into businesses, channels Feedonomics world's enterprise nutshell, leading channels. the but largest is advertising and platform sync for not marketplace business. a feeds catalog the large and a subsidiary successful the it boldly optimize helping AI scaled just of our have of and what such

the Google So because it businesses. a major Target a maybe the Feedonomics . AI marketplace for customers catalog, a XX% and ad brands networks, more ad result major like average, Amazon, a differentiator and Google in Google, and used the core the and display to social see biggest networks Schema be XXX% then affiliate average, is merchant's the announced, is Microsoft XX% Walmart, marketplaces like does we'll get to Patagonia only used optimization in retailer world and very their sales remaining match lift which are other networks, like work. and who close channels. what channels that as to just then on like add the then humans the On channels through do take Search, the the of major they'll

very believe. sales so and the the world anything what channels. other biggest lift in through not There's AI marketplace out I And XX% advertising delivering is there. don't

by terms website, sales merchants, a have AI in platform costs, the leader AI the we briefly, keep we I a as then capabilities core where product powered rider, lot much So that are on lifting Google including we recommendations there. big matter through things emphasizing very And very in think of such AI. reducing to coffee

our is service. product and frankly, own That customer out

the those because answering in knowledge perfectly going live typing using into AI. that XX% answer the that on of questions the and a the and time, first perfect of the through love AI way customers using our talk they reps option has questions chat never our customer one a of to Our phone time got they base we're fact the have to

We have very a open approach.

developing into is a major ecosystem AI creators e-commerce partnering with go marketplace. and also MLMs. that We're AI our products Our

back So does scale, innovating the but AI, very merchant much in Feedonomics powerful, any go more I'd beneficial at what AI. to emphasize than platforms other is of world more and growth

Unknown Analyst

and And helpful. emerge in I consumer trends assumptions underpin wanted Any consumer spending any, helpful. perspective what, go-forward from that if the also on super macro spending be the would quarter? a outlook in drill backdrop. That's macro to just notable quickly or

Daniel Lentz

Yes, been same to spend describe used the spending, like really at prior we're getting side. not I'll we're consumer in restaurants prepared remarks but macroeconomic what improving the it's quarters, the in details we're it's seeing not we eroding on term take that of we look it the in significantly terms demonstrably and word of worse. deliberately, one. else the said, With that what versus kind That seeing other. to and seeing use says retail where respect consumer resilient and everybody or

though into seen with so we've line this planned in far what largely, expected think what year we I pretty has and year. been going the

were. pretty perhaps more little say we that reason the healthy. But into are is of So because year than with more We're want and period, still still fairly clearly. in a say perhaps the been guidance point overall, cautious this some I'd conservative of optimism We we're But careful going been it's a others it's reflecting the that. healthy. why bit maybe optimistic describing taking holiday caution overall, to the we're view in I'd towards be

Brent Bellm

be but No, to been online, a this later reported were single-digit we've been the pandemic, when double the rates great the the consumer again last be since rates that And and e-commerce we going consumer have the world not. would Bureau continued to add level QX growth always see month. double-digit of that's single they I Census macro U.S. growth at necessarily U.S. in is reporting XXXX I'd it have delightful digits. to in something get and e-commerce it in late going it's to Commerce at not Department case years. And have digits in QX, rates before don't mean the spend I that X forward. that's for change frankly, just growth

Operator

from question next Murphy JPMorgan. Mark The comes with

Mark Murphy

and and juncture. often a legacy how out is it away follow-up. at I'm Magento, e-commerce which see other IBM, HCL, those [indiscernible] In there? you well, you migrating words, relatively number commerce wins vulnerable you which it feeling So more of live. curious, quick I And a Shopify, how which got mentioned, and from mention often then did platforms think are is you of others, as most this mentioned I I've customers are go platforms think Brent, commonly

Brent Bellm

Magento done it's the it I have at Well, level, Magento and boy, say you're but win the or them, Wu, they at depends and whether move IBM in which biggest there spend, lot range. in aren't the SMB custom total out would count, Shopify followed by over It's GMV. Shopify, or really do of terms companies migrations we online it on they stacks a has a many like time upper et the legacy lots end of reputation commerce, as upper at it's drive SMBs that custom, well. talking wide needle There it's when end. the the Oracle, And SAP big of cetera.

on they've giving want modern platforms. we're complex last cases. use mean the been waiting get up cases a right multi-category waiting to implemented been retailers to manufacturers, X just much it customer the for one that's so industry but I examples been like next for that been cases, branded going And upside complex legacy XX these years. to like use they online been most I what doing forward. hasn't these show I'd where is see platform business retailers folks years but ago, the enterprise off less I with little I've for tech platform way modern The Bells. to years, a And our Know model and hey, RealReal paralyzed. or there we that's a it's they're and complex of have that A for for we who store-based multi-brand, betting it, can the modern yes, do bit the that SaaS that, success say, use They've enterprise Shopify SaaS company doing being been stepping the ones now. the for and years in at XX look most can the because like them for love platform characterize and really the doing examples

Mark Murphy

It's that the about ARR. pretty [ Okay. it's severely I same down to it new for nice net seems see enterprise uptick . enterprise like customers mentioned see. time, Daniel, you the ] then the of to And At number XX in added,

the customer question, you towards Just the to that large back did lately. just companies customers Did many trying that to that going shifting prior of Or out tying land? of bottom to And reindex? remember -- consumer-oriented larger so are there is the then kind you in that if with flush struggling tier? at just

part McDonald's. it you that? and and that Tesla than resilience UPS see think Nike you cycle. they'd be You you tougher show your avoid able start -- you the where XX, Or business customers BXC and why often to a a consumer cycle Fed Why would think does XX do hiking why to made think do roll over more Starbucks and after the in of do months

Daniel Lentz

to the me get the first, take and adds. last back question net then let Two, I'll customer

I in with we think in reinforce just that spending consumer line growth not on saying We're to rates of the that is seeing what not in we're What -- type is seeing consumer we're expected. e-commerce. side, effects. saying not that are seeing the again, seeing we're that, the we're used what there to we

base. conservatism. data same area. referring to, our macroeconomic perhaps been the good think kind a seeing commensurate customer and healthy, Overall, according may overly overall, We're our have I much really sector that building see cautious because think we we exposed help. I vertical think to another, I mean, But are not that we're growth to not of guidance you're of taking though in as sector that basing diversity or mean, we which we we outlook like level may plans would that and but it's we're we're X I as to seeing in have really, and relatively our

RPO trending in really than better that getting energy focus, revenue just at towards we're deferred I really, well, year-over-year. if I those not With before. mid-market contracts. was as RPO what been in up mean, it and putting revenue year-over-year. up they and respect healthier shareholders but adds, mean mean we're deferred and in contracts to is customers part larger seeing and is higher we're we're enterprise and customers, lot XX% also of XX% towards healthier a you of making have in trending net look for

area in in We you're good course which struggling with ads, gross what and to than dollars quarters. we're better side seen of do improving that in we've want to we're trends We efficacy a of that little seeing we're adds. really in see last the that seeing The seeing the is the well. retention. new are on net at efficiency as terms customer net what in We the bit and that over results is pipeline better work go-to-market few the putting growth want where

I view, but of mean contract environment view, want So to of point quality bit new I'd as the and from of gross wanted things. for side say on where net of a we to we to a of kind retention bit logo adds migration net Brent's from where little that's the tough a it's or and new impairing he was point, a point be of discussing, be a

Operator

comes Samad next from The question with Samana Jefferies.

Jeremy Sahler

should how about on ARR a is the percent to mix? Jeremy This enterprise to think Samad. the Is guess, we line for as time there any first, of XX%? I get change to

Daniel Lentz

that I'll one. take

growth. mixed able have it's One, that a reasons. we start years and doing of what of business is and towards enterprise couple that portion for than a X think would quickly small I a stabilize less stabilizing to be it thought into little we that the probably around the back than turning we We better where expected. ago would little anticipated business

the with in a enterprise going is the trend really same. seeing quarters when of that look at and adds you improvements confident environment perhaps the of it's BXB, in the It's a and we're we're mid-market particular, think trend customer some customer that we we're of done a more of we're sooner is little the that enterprise is up. little just But It part towards and what That's we I trend business new I the about some one. already bit discussed think a migrations. tough X, little we've in . couple bit maybe slower long-term challenges by than that accounts. anticipated. than think in mix market the more going to had seeing bit expected. that Part the we've continue a that has we're the slowed seeing success still migrations describing, where But migrations and to we merchant the been

Jeremy Sahler

then you if can That's percent follow-up get? contextualize segment total maybe whether then or what any provide like you data it accounts how big on for, on maybe And on And a Got maybe of you. the BXB. color. that's GMV? not, or useful ARR do help the think Can

Daniel Lentz

would likely percentage time Brent will the over I mix a has Yes. that become and I of which several already for think say, reasons, mean, BXB greater we can discussed. overall

mix I overall terms business, to but which prepared also haven't say anticipate percentages of in is of we What retention trends -- take of the portion exact and the the grower as not are. in the X the in we like on the tends as what of mentioned our also of the that can continuing. just be terms mix business, we in in the that PSR. In the we part disclosed ability growth of better customers rates type we underlying been see has do that that's what to really, disproportionate the than remarks, those with a BXB maintain X really rates over total XX% what a time for healthy of the And continue we see to probably business. remainder see health, years, It's last to a in

continue the to So look to when economics trends for a us, winner and the it's area we product underlying it's invest. going clear at and we be the an and differentiation,

Operator

Peterson comes next Brian question Raymond with The James. from

Brian Peterson

migrate I'll the BigCommerce? that what look that in to might So as on of offer And like see like? look the you ideal platforms, other What does does customer. take Brent, your up opportunity you on BXC what over terms of

Brent Bellm

Yes.

start-ups we business Let business. me small talk When our years small a were built about we started the XX evolution businesses. for platform in ago, and

is a of for up manufacturers, in online offline X,XXX sweet to say branded and emphasize would look direct-to-consumer of all very at We sales that's back So and segments distribution, GMV that BXC the think years, last we the in I through our native of less for branded customer. The small a my the X has XX% expanded analysis, real And they those of if When terms businesses in, of business spot. up came retailers couple true point online. top account definition, manufacturer. in omnichannel market. third-party digitally sell though, you XXXX, brands into by then because our our ICP ICP been U.S., complex I the market, than or a until combined and moving they're more by started

had To The X, most complex of XX complex other XX% that far businesses we predominantly online spot. online date, let's ago, and are of very, not though Sports and retailers just cases use with the have trader of in we years examples sweet like sole the examples been multi-brand multi-brand, large call retailers, more it, complexity. and Shoes, are RealReal them, at examples which would all announced. scale very, our X of retailers and store-based very Those

the of growth the significantly, so world. to U.S. you used power platforms earnings X in has X This matured retail. in retailers, is can leader retailers this draw examples now historically, is music But for the draw examples release I and store-based displace can And than through. then custom these platform because XX% GMV from of can the areas that a our us. line other you a were where is online in online lifestyles, example that of And great just and you the located. primary like biggest legacy not a line gave the we and And platforms more through Andertons, U.K., the advanced for store-based Europe which that

examples say quarter big winning. great proud has subsets last areas is terms we're there of of And of So profile, each to that X what customer I'm those I ideal are both. this in of now think

Brian Peterson

rip you rip and opportunity, That's that versus color. playing you and components replace. great of you versus ahead? on your kind versus you target see comments of some mix a customers relative before that that expectations? of out Has components I'm curious And as purchasing do as And how replace the balance full full changed some buying to looking mentioned

Brent Bellm

than and rip of replace components. out That's going But companies we Vast think always longer. because mostly, and and way. do to mixing Doing doesn't the rip time, that rather will matching and takes majority you're harder experience. it replace. play be are our is components it

Operator

[Operator Borges with Instructions] comes Gabriela The question Sachs. from next Goldman

Unknown Analyst

We is evaluate tracking in Gabriela. and How BigCommerce? adoption for the [indiscernible] noticed This industry? is the a of headless the in of examples prepared [indiscernible] on catalyst customers press to for release remarks. is commerce some new And this

Brent Bellm

through implemented the in our prior it see We America it Mackalliance, traction see new to in in JS years. offering company NX based relative react market-leading composable we the who Yes, we Bells and and reference in catalyst in gaining market. JS And industry. on see is North make our really, catalyst. architecture best are editor next opinion, our the Swift visual particular, the

Next So be you can record composable That's what and GS Bells in time. use implementing you perfect successful want did. react. of how example a Catalyst, just They

big actually ever we're big on and very forward, there the out we composable, be or be that of be offering composable choice it So in be about excited We'll Austin, more commerce composable we'll core so between market. into offering will in the have won't showcasing incorporating at box. not our going this summit it later month a

Operator

UBS. The Chris from with Kuntarich question comes next

Christopher Kuntarich

Brent, that. out back efficiencies the follow-up further I half broader after the really of business? of should big the about in prepared your on in how further a go-to-market of side be I more remarks. impact have you called guess this year we thinking versus commerce the the efficiencies

Daniel Lentz

go-to-market of efficacy the the Daniel. that the In and we're that, we're dollars, spending. one. is we're out of This focused money the efficiency. also And that of efficiency particular, getting but that the absolute not by just Yes. I'll take dollars results on the

rate. getting point focused, not to We're really So we lots we're of us the go-to-market growth efficiency prepared this growth seen rate of how laser remarks. in companies about efficiency declines have getting on of they're similar really, some just to a the talked And that from in the what view.

dollars. are We top focused we on growth that with reaccelerating more investing our operating line way and in laser way the efficient doing a that's are it

doing already So but but lot there's started probably we're go-to-market, sports in overuse I we inning. we do. get not process, We've characterize through have back to started. third as to in better And left efficiency And of continue we've we're build to to the we foundation that continue that what to that's going the analogies, a the and would top spend the get to until that. reaccelerate we're to half in going year, upon we're do line driving that

Christopher Kuntarich

just at one it. their Google big That's and then helpful. Got Could Gemini with And to model. AI of the versus choice on about you that what drove just and Google go maybe choice point? providers this other copywriter talk

Brent Bellm

had on e-commerce, area. been working Well, starting I an boom overnight as even guess, in popularity the XXXX prioritizing late, application AI models AI Google before and in particular,

hackathons and of them fantastic any customers in applications. with agency us open They've a with. to either employ partners longer than a work So and recommendations for the up developers, are or ecosystem, to or working and partner by means, the leaning of been it's all ours choice partner great recent and Google But for been on we AI cases to we're the and and or MLM they've not which product and e-commerce natural tech boom one model, actual the but our MLM. we've of use we partners, because any of done just collaboration models, I We've customers with ours. into and just been them to praise exclusive use can

some of competitors would others do with to exception the about of different exclusive is what on unlike transparent proprietary tend who don't I commerce on primarily rely working we models. our our big what to or The their about thing note What's and final working models, are and on. model and black on Feedonomics have is rely that be that on branded firms they've proprietary and we we're open boxes where their

a in So gets that's happening differentiated innovation best development. the think approach that all AI model the from I

Operator

CEO would the This Bell, to remarks. to like concludes over turn closing Brent Chairman, our question-and-answer and for back session. conference any I

Brent Bellm

opportunity which And gross very In new a for we're be to really do continued to in. I'm prior segments gross dialing our retention. operating is at think serve very, efficiently. the growing The momentum and the BXC I'm leadership over quarter under big us as to optimistic changes we very emerged cash also the market, is we for of the big of as Travis' have for that to flow net making improvements gaining delivery, prospects both that that, doing up shows would in described, I of and last that thanks profitable BXB is distinctively years be able the and I've well. sales everybody, and Thanks, summary, business. and the are flow-generating say substantially I highlight proud the cash sequential

following hopefully, forward then. and to good So the to come you to more we . quarters, news talking in again look

Operator

conference The you today's now presentation. has concluded. for Thank attending

You may now disconnect.

BigCommerce (BIGC) 1 Aug 242024 Q2 Earnings call transcript