BIGC - Earnings call transcript Q4 2024 | BigCommerce Holdings, Inc.

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Tyler Duncan

Good morning, and welcome to BigCommerce's Fourth Quarter and Fiscal Year 2024 Earnings Call.

We will be discussing the results announced in our press release issued before today's market open. With me are BigCommerce's Chief Executive Officer, Travis Hess; 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.

Forward-looking statements include statements concerning financial and business trends, as well as our expected future business and financial performance, financial condition, and our guidance for both the first quarter of 2025 and the full year of 2025. These statements can be identified by words such as expect, anticipate, intend, plan, believe, seek, committed, will or similar words. not views upon today at as date, we our not and any reflect to and relied duty be representing do statements as statements. only of should subsequent update These these any undertake our view

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

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

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

Travis Hess

excited to outline morning, on BigCommerce plans potential thank everyone, that. joining and for today. lead for take role, excited modern commerce. company believe to lead was Good to the board to year progress me our the XXXX. I the you I'm joined because last asked in share its and May us do I and our in I when just And CEO

focus specifics those haven't of, Today, is to our capable we're the yet taking this of I'll steps we achieved improve company While bold performance. changes. growth the on

a million and over our XXXX forecast. nearly exceeding with $XX XXXX First, the improvement finished numbers. non-GAAP $XX original double million, operating We income

but we XX%, a confident in expenses in by growth, do our X% at per it is to accounts increase; crucial be implementing what there, the can average improvement below and account has and XX% revenue company's step must achieve. Non-GAAP past were have performance which have the sales, service and potential. Net at is million, strategic retention customer for we marketing, efficacy partnerships. better. of enterprise efficiency This nearly and improve rose the full get and revenue must $XXX do growth one, unlock the X%. one. XXXX by changes To XXX focusing and We enterprise of to a flow, below potential. to from $XX gains Our margin was million on We progress, ineffective operating with bookings spend, that our our a X% management implemented ARR expanded and approximately by improvement We in today. We generated did by XX% enough an targets, was sales our finished revenue in made by meet customers. This cash not profitable priority our headcount last of reducing million rearchitected $XX made marketing organization growth but million from major these reforming a up year. cutting and team, year achieve basis points, remains last our our our revenue, finished XXXX. up We marketing and and operating not we non-GAAP notable revenue, XX% we efficient, to growth. We been a and for model high-quality ended XX% nearly It set with can year year-over-year; and sales go-to-market to XXXX so. us changes #X $XXX operating and also want I'm

market organization, our positioning growth. decisive key transforming partnerships, to taking recruiting about drive are want expertise; two, our customer in success sales, SaaS to operations; areas: the product revamping leaders we go-to-market with talk actions and strategic marketing, and commerce one, three, Now top I X and

each. address Let's

Glassbox Marcus Officer we've Groff, from Salesforce bringing of the BigCommerce's And Suzuki SVP next in and expertise as drive growth Walter phase. in bring Chief Commerce new Instructure. experience last and In SVP November added that Marketing from of in Turner, Rob leadership as January, our Revenue Cloud from be our Oro, joined late Chief exceptional Revenue in Tracy Commerce business. Together, Michelle Salesforce Officer January, Operations, our and to Engineering, AWS new First, few extensive ChannelAdvisor. team. months, they leaders Cloud joined joined bringing Demandware. instrumental and January formerly transforming our joined will from Hootsuite. expertise in

operations year, and new Over this team is efforts. and our majority excited to of I'm teams. roles The has sales, our senior replaced have the the team customer in the and we brought last place, executive in transformation enthusiasm success about talent marketing,

operations completely partnerships, marketing, have our we Second, organizations. strategic sales, and rearchitected customer success

silos. We data operational feed have of BigCommerce; editor, and product commerce our our and owned AI-based to portfolio site products in our management product, and processes the today: builder our visual quarter in and commerce systems largely separate X XXXX, Feedonomics; products Makeswift. Prior these brand functioned fourth teams, X platform, flagship for

organized all operationally teams around offering have commercially, and both and BXB the BXC, business. integrated X have small products, and We groups: X

have than We now product. dedicated marketing and over aligned exclusively sales are X by these and our these of with offerings, manager general a teams each offerings rather

leveraging are efficiency, sales outreach. targeted identify enhance to account create enabling AI to sellers We and and opportunities managers

products is patterns for core segment, our customers to In Feedonomics our AI in short, their frictionless support market to also predicting expensively. and data is barriers and them attributes, and better, enabling in market site be service by profitable faster Specifically, less routing they capabilities customer product what more development us and in and BigCommerce experiences. inventory migration what may AI facing and needs them want or order AI and commerce particular and customer cases, from analyzes have availability, to prospect optimizing and product market. in features improving use aligns

target drive ramping We number BXB managers existing opportunities sales among and are our BXC experienced up team, customers. of our increasing and account the to adding expansion sellers key to

track on by mid-XXXX. quota-carrying double are to We our team sales

prime our at accelerated York the of of Retail example. Conference National the of we composability Finally, launch which at New in leverages Catalyst a and is are agility architecture tech cost, partners, and the fraction January market Catalyst our a recent positioning. industry-leading and provides Catalyst is scale reference without marketers ownership. associated need advantage best-in-class developers. manufacturers capabilities, retailers, and transforming components product typically Federation scale taking Makeswift The This architectures. with of composable distributors brands, total means robust users significantly with agility cost visual editing time complexity and of for best-in-class and also business of reduced and for via the in

and Catalyst which and overwhelmingly BXB plan targeted We at customers. The later to and been BXC we industry positive, analysts like has of business a and of specific tailored include bundled hosted industries. and partners mid-market response introduce from are in more self-service planning will a year, markets overall to small also Feedonomics version this version Catalyst lower solutions commerce customers, XXXX,

to move the focus, with three, we strategic initiatives committed set eliminating remain our noncore two, teams marketing discipline into revenue execute long-term sales growth As We've priority; growth; X one, leaders. priorities: we top and critical and recruited and to the our profitably, strategy, operate XXXX, aligned drive reaccelerating our transformation. and

lead Now it's in are believe time future to to deliver. Transformations challenging, the I BigCommerce's commerce. of but potential

journey forward, over remain immense differentiated approach excited team, confident continue with you. With the it this I'm all our to turn market I opportunity. an I'll and right of that, have Daniel. a in to path and We

Daniel Lentz

full good year and delivered $XX expectations. In key stock-based QX on outline and line which XXXX. full progress income, XXXX revenue year you, X% revenue a and Travis, expectations the X% just over we costs profitability. results, million significantly pleased to outperformed to $X for excludes acquisition-related revenue QX, intangible while full areas and $XX $XXX year, Thank in financial million, $XX million. Non-GAAP compensation, XXXX of and from loss I'm operating walk XXXX $X our grew everyone. up and morning, highlight the through million with and strong in million improvement a QX growth our QX reached QX in amortization restructuring assets, year was million for costs, year-over-year,

margin to hit and operating XXXX's QX in program. from stock-based X% revenue Operating XXX loss. We dilution $XX flow in percentage million as nearly a million also net year, in improved our improved XXXX, negative year, reduced XXXX non-GAAP points continue minimal million million basis meaningfully. a full XX% we'll compensation XXXX. Cash equity $XX cash X% by $XX the for for $XX up swing negative of the and from flow in and in Our prioritizing

XX streamlined months XX.X to were shares outstanding basic outstanding We down as to or in reduced company year-over-year. We shares restructured now ARR, delivering greater million, end million, million, Enterprise declined growth X% of million. Profitable and $XXX million, headcount total across diluted profitability of grew fully discipline the $XX For priority, and marked were the transformation the X% QX approximately rigor, Non-enterprise ended, top XXXX ARR XX% remains the year-over-year, improvements our with XX.X teams go-to-market significant revenue $XXX year. cash of representing of closed by up business. and We flow. up instilled run year-over-year. X% a rate, ARR. X% X% and and XX% nearly revenue annual ARR operations,

We in securities million million XXXX, stands in Net million. also total now after $XXX maturing million million million $XX early these with QX cash, notes at an us marketable $XX debt roughly repurchased equivalents of in XXXX, portion and $X.X and XXXX XXXX a additional debt, $XXX in convertible and by cash our $XXX.X leaving repurchases. maturing convertible in

and repaying is Our strong, supports financial outlook position servicing and our this debt.

million $XX.X million. we XXXX, expect QX to For of $XX.X revenue

to $X non-GAAP million. expect income We million of $X operating

year $XX to $XX For to the of million non-GAAP expect million XXXX, we operating $XXX.X million. million full income $XXX.X revenue of and

growth expect our improving adjustments as and XXXX early result QX an will While actions new take go-to-market our hires, likely mirror root. a we XXXX of transformation pipeline as

mid-single-digit reaccelerating growth growth We mid-single-digit pleased growth. full operating for to gradually are in reinvest our where is ROI low- with margin revenue with additional QX aiming margin We the strong, to plan are targeting and expansion better-than-expected expansion accelerating. We're margin and expansion ARR rates XXXX. continued balancing year, in for

outlook and consistent Our with trends assumes spending remain XXXX. business investment consumer

potential conservative satisfied but take excited we're more are at clear, uncertainties, Transformations to be on like ahead. I New a our Given undertaking to not with are this in York laser-focused we stance. Investor full on are unlocking forward to one But projected company's XX. Operator, macroeconomic what Q&A. lies and let's March these about rates. the time, sharing we Day growth move we look taking

Operator

the Wong, [Operator Ken from comes first question Oppenheimer. Instructions] with And

Hoi-Fung Wong

of improvements? us benchmark for to that would thoughts we time that of progress will these revenue [indiscernible] on to see KPIs any you key the success? when gauge steer some And any kind lag kind a to, you Realizing might of of make, some timeline execute.

Travis Hess

Ken, I apologize.

broke your you of You repeating mind at beginning for us? up the that part question. Would

Hoi-Fung Wong

that now just that mentioned you you that time it's leadership have in was now saying place. to I execute

see to right success on to could the of that eye improvements. be an of like KPIs, kind before we that are Just start goalposts timeline wondering gauge keeping what what some the should we that and those look

Travis Hess

Ken, thanks some signs think for pipeline now. quarter-over-quarter. year-over-year, the to those going We're question. of pipeline initially leading be the is indicator quality I to see obviously Yes, and starting of

is we've infrastructure we is place. kind of pipeline translate leading would bookings, expect of be going probably around previous obviously, ShopTalk expect earnings, messaging yes, will first think we halfway the obviously, would year. But efficacy. through the that articulated then into that that mid-March the and the here As first improved in changing to of kind start hit but help And and in indicator accelerate, to External Show. to pipeline,

Daniel Lentz

growth commentary talking would metrics revenue year, that where in we're of out an time but a we we from about we a are there growth spend on both throughout going ARR just to a of where I the Ken, putting acceleration. amount pretty also pace in we're the view, deliberate to being rate, rate. We're go about fair see in add thing is of that, as One point

be we flow leading modest across metrics is first of year. able tipping growth going to we few we saw said, full out We pipeline look indicator a we'll as the about to we point. what transformation. QX year as similar execute of We that expect kind focus to see and I ahead will is revenue, just pieces see at But We're half this as last which think best in we take start on expect to build perspective front of from the see. be fairly getting that acceleration mode else finish from like the slightly pipeline, this to to the we ARR months expect execution talk we there. everything We'd and calls. Internally, the rates want on a it the to in think to

Hoi-Fung Wong

quick 'XX. just then margin, And where a for guiding Daniel. roughly are out Fiscal you, follow-up consistent of The you you closed Perfect. operating guys with kind

in upside path to expansion? order is the need we about will think we As -- forward, see revenue further margin

Daniel Lentz

and aiming perspective where question. earnings endpoint were QX. perspective different XXXX that some growth is we of last wanted into expecting from from exactly rate a The that's call. had improvements profitability little to the is thing early Great our forward when brought for we only we The a make we're planning a we in ahead that

So beyond little expansion expected. I we order a get to what got earlier talking improvements in just growth to that we're than of to to that the don't we some those revenue think see guiding margin material need we're about. we

and ROI starting growth of But back time. that I so are our we healthy in think think we same way want rate call as marketing pretty and we've beating We we to margin expansion we this growth our margin priority it type end in rates. show on on strong reinvest guidance. a expansion. some we into to that out see the growth that prudent margin called if that our talking upside sales the But our acceleration, of we're were balance I gives but pipeline, the at out that doing investments, intend building that year up us deliberate see guidance that reaccelerating expansion further to also still about, is in to

Operator

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

Koji Ikeda

on I question wanted ask capacity. sales to a

the mid-XXXX. track prepared on in team think you I sales your said to quota remarks, you're double by

reps So perspective. there that event new like really was pipeline with from XXXX those a conversion it's my first that, thought quota-carrying sounds a

forward. think ramp pipeline capacity to to about going your conversion then So sales here how with and team, creation is the sales question

Travis Hess

Great question. actually fully It's loaded.

I didn't but have This was I only to exactly add I'll go obviously this been this and effective mentioned folks planned, we was accelerated for AI it time. with experience XXXX. previous it effective let folks also just a as has that training how cross-selling also with we the to experience fully efficacy but making they more with, not to in deliberately color trail expect all HX earnings this internal We've was Daniel them. But that's here, relates onboard tenure year. enabling surprising that in we think shrink drive which bit as folks, and some started would all last of ton I into in loaded. had and the done reorganization here onboard ramp that not maybe as purpose, a been leveraging enablement, to of and products wildly been,

Daniel Lentz

that I that add vast What to perspective, that timing to would from the double adding we're a majority already complete. of capacity, resources roughly is the

year, of such profile we're after quarters based and think through back feel the that. in is we really in ramp shows be year. capacity we that momentum the it plan not by of where start end up year. QX. of of specific a really, expertise now, strong that can the got recruiting; as that to Rule roles growth. But of the for we're we're basis, such to a period that of some where this we It's the We're is but we some we areas to we business the a going think matter of for a you've ramp another we're XX acceleration then the that it's such the As not think on that back to and in gets X can the largely complete capable half to show QX building of that BXC, fact, and progress. But by of half signs hiring trailing ramped acceleration cases, was in exiting going we going in aiming see be still We have those going lot be end we good going bringing expect timing of BXB really

Koji Ikeda

Got it. That just is here. very helpful. And follow-up a

so how be priorities. thinking but customer guidance, not spending tariff should more the we on volumes, so about On Maybe risk? on PSR much

tariff So risks? place in what for potential the considerations of sort are account guide to in

Daniel Lentz

pause and some We're back, things are tariff least. to larger that a on taking after There's seeing right view of went risk we prepared pandemic are specific expecting it why to similar sorry, optimism macro we're look that signs overall reverse, just would have say my -- view, in shortly from That's that called our prospect to macroeconomic we're flight on the conservative make we to saying we of conservatism lot of to a in expect things. remarks look community. especially the view. the in similar XXXX wouldn't side to point our of said, the XXXX motion come that seeing deals. are encouraging point I out that now 'XX a a contributes I within of deals from started XXXX. That of part at

cautiously of say a and the but that out tailwind exact not So in from would a our reasonable year. plans you perspective cited our reasons it's think and taking to for optimistic for I we're just the outlook prudent view, we building ahead skis get

Operator

Hynes, next Canaccord. question comes the from DJ And with

David Hynes

couple a Travis, direct sales on questions you've of had investments.

of other folks take been for partners. me with kind as you've Let they side BigCommerce? the from How asking engagement and what leadership And are the team? has ask of those reshuffled that about the

Travis Hess

side, ISVs innovation very leading that disruption been in on It's more and definition, composability, fact way obviously, accepting question. will the partners. and the by come by as with of third-party Great partner bullish

of And operationally, so job consumable to make easier, more those is our capabilities technically, commercially. really the ingestion

think so lot enriched of it's And partnerships. a I those

way we earnings, focused alluded in to I who double-down last to we're more Now be about as going with.

on GSI of ISV agency as as the to and well up partnering we're side. an intentional concentration we've both seen side where as So the sort

going And forward going to would thus extent lean far really credibly change. think and material most been more we're with And that into to has them, as So response continue well. that's positive. I probably I been deeper the the the

David Hynes

Got it.

Daniel, happen threshold the then, And in NRR for to view? Okay. what to needs get your what's enterprise right there? you And

Daniel Lentz

a designed perspective is very and is XXXX were are to in of. Results to not bring we NRR to a best-in-class capable where XXXX and business. as that are we Everything we to think that business ultimately the similar doing transformation from need be levels where

During NRR. roughly I of years, XXX% averaged, kind in the we think, pandemic

self-serve monetization to in think at you version making we're paths take to at get in we're time our a it's bring payments lot But doing ways checkout back going additional look at I about of if these whether some to things all the that's that that to investments on floor leaning in there. Makeswift, tailwind product, in our way to a York with more we're provide again, we'll well. of the with this what And the better Feedonomics, and can when and base, detail bundling, things looking of doing what lot that looking of rate lot stack, talk as Day. think Investor is yields raises those ultimately get New cover I next a to business NRR want profitability And detail to of things we a in month. in we a growth us

a that motion are we're at that in point. excited to share We lot have things that of

Operator

And the next question with comes from Parker Stifel. Lane,

J. Lane

the ahead overall Daniel, into you year this ARR to as of track referenced revenue growth. for it expecting of guidepost being you sort and

in framework is nonenterprise of the piece quarter, year? your declining Looking at half that what the the of the first the around commentary for expectation exiting that

Daniel Lentz

customers plans, A then which small growth looking as business portion is an at that enterprise but in not. When a and flat lot from self-serve further mid-market basis. that time. on on we that year have year customers, of a relatively we part a in full be we nonenterprise of of a many flat, front business happen and things that remains actually of where our flat we we're priority grow vectors be we aiming think that expect accounts, business. down, on of at of focused example, be expect version do to be on moving for enterprise the slightly basis. The us to to of the pipeline maybe largely of but or to full There's year. in small for of business I portion room a upmarket We're buying the very stabilize the look much over some business the are which lot and perspective, half focusing Feedonomics, to

really thousands that have to want We customers, business we find expand small of tens of further. to ways and

Travis Hess

on and segment. Target -- I X particular ways I are that, would in meaningful add differentiation and that to share particular, could more that think Makeswift, into probably say, is for QX. just Feedonomics, drive maybe self-service we midyear, to more drive some feel meaningful for ways payment, color potentially wallet

And term, there's thereafter. coming conservative to excitement an and opportunity going a to stickiness our season but there more being the value of how base, with and small impact, longer little of But up a level the create widen an of of we're that also think important that existing with in in for much holiday shortly I customer there a that's add so kind tremendous recognizing especially TAM base part base our core amount business. bit certainly install

J. Lane

for one quick a Travis, then, And you. Understood.

about On 'XX? more and maybe the has focus, done other think initiatives. did should of discipline this here largely you've you'll progress things deemphasize work been year? lot strategic through this with reference we throughout we Or approach been as that Have being you as noncore that to that identified of a and operating a continue there eliminating priorities, clean-slate

Travis Hess

clean slate. Very much a

longer-term to be probably had they not differentiation us a the of more I think certainly the things in market. map QX feel from to align sort We that of of couple vision; cleanup. leaning don't sort profiles were business, our initiatives customer the to of and we but deleterious aggressively will some ideal the that last our of into preventing

was that to a goal clean end wrapped slate. the of up and have by So QX I think

Operator

comes Schrage, with KeyBanc. from Maddie question Next

Maddie Schrage

this into you efficiencies that give you're cut touching efficiencies to if one and marketing is first some what again. putting My quota-bearing about areas those specifics the and added those on and improve you taking year? you sales reps Could savings

Travis Hess

organization matrix marketing can organically an in and, standards level-set into and kind rearchitected requirement kind certainly well in then at That Michelle's costs recentralized vision of best-in-class was a opposed criteria. within and key globally. it we running of region, entire scale more matrix the same which question. of as some that it was and to that opportunity and, coming decrease time, model and a compartmentally duplicity part of to Great we kind efforts that Philosophically, of parallel, as

So that was probably that did. philosophically we thing the biggest

opposed office On side data, there's around really in-flight X the duplicity, very the and CRMs in part theory, let were By product still broader about time. And of late. to, like react marketing focused off objectively and as kind back that business more arrears in X as talked a of position of around our we of really doing, stuff our was all it We're we've a being the the in deliberate color. integrating I'll things state. single to much around saw add teams and kind systems group, Daniel time within a real of of legacy metrics bit kind in operating truth now transformation, better driving we having but of any what and source a additional in quarter

Daniel Lentz

you spend Maddie, side we've as specifically examples on I of could give made well. the changes specific X

fewer build number pipeline of and we're we've of just gets events, absolute with events we for We're sometimes really perspective, we the in. First, much number better in can larger think putting a the on so and been dollars we're scale resonance that doing events really double-down really, smaller which from that high really, events, many an frequency. events, doing presence reducing

the I our is on example GSI out would and throw Another even community. partners relationships with there

group you set depth changed of examples a number reorientations implementations way in program we encourage better our from Our generation at to leads are past efficacy really a that program could have focused most sending they're the other large We've things, and delivering is really commissions, agencies to the making generating that successful. I customers as rewarding really allow and dollar the that smaller with well, more best slightly us customers are relationship, more smaller but cuts. a like give ultimately better are experience ongoing but not partners. the frankly, having referral the with the partners to partners, dramatic really our on of so that maybe up They're referral that these of amount.

Travis Hess

I'll the last partnership too. side, add color one bit of on

triangulation approach about New think the and because more and I they other composability, this material and around strategic to how Investor of only help costs partners those around York, partnerships at in of not of costs to and some past. our of just also but a in weren't outreach, have subsidize to and targeted able lot talk able actually take those events, of accounts accounts we something additional MDF of our those some was around which we're that those the while to we'll are driving advantage efficacy, Day depth sort of share

of if cost to that's allowing us be there, more with helpful. effective investment So less that's

Maddie Schrage

I as motion some that add And helpful. think, Very obviously, cross-sell well. should

in like seems you good are guys a it quick just follow-up. a So place. And

addressing people's going you curious XX%. main the of that? terms And obviously, I'm accounts, for enterprise net churn? how be are to In to retention what's revenue at guys for know reason

Travis Hess

customer. Daniel together" "better and other I deliberately cross-sell story and think ham-and-egg of more being that. One, per create of more upsell, stickiness and about a integrating and products kind intentional and greater our X by share able value I to wallet definition, can will being

having not story very in made challenging market just tell I think bigger, a it broader that and differentiate. to

and strategy data upsell a just to motion, being be in a talked able think going go-to-market better to story to I our from up big in in much perspective, about We're we that you spot materially. general, cross-sell, a to want "better feel exhaustively address not make that frankly, together" do difference. And quite anything? effective we've Daniel, we've perspective. And add in cleaned alone from that a So which is the past,

Daniel Lentz

No.

it you think answered well. I

Operator

Barclays. The next Raimo question Lenschow, comes with from

Raimo Lenschow

are you whole the the what seeing follow-up. are one plans How And macro? And there? dependent on out I have then

Daniel Lentz

pretty think be baked into take control outlook trend. I don't the want as at always X commitments plans we internal big guidance our would conservative have macro shareholders. or and how not building to of outlook years, to outlook our building last have least change that have in are we overall or tend to to we in a from in our things beholden X We outside an say about over perspective, our we a because hitting

really, going not improvements materially expectations on I to lot starting see So that view on us cautiously us control. we're that as to that building starting are a the year. we're to year see expecting really teams. salespeople tactical the good are to efficacy would ultimately say, their sentiment, macro we it I'd upside, last projects that this I resurface. that pipeline That's buyers set need bit side. And summarize through that's think something go-to-market said, We're starting build. a taking overall, not we that put are something different start within as when get on optimistic. the starting working a increasing territories outbounding marketing We if I look little We're like to pipeline decisions, to to of side, to their and We're can execution those to gives but making it's more number see start our that great. expecting tailwind decisions. That to to we to our said, if we be see own they'd especially need encouraging are and signs off replatforming we open

Raimo Lenschow

Perfect.

like, the partners. do on then on one hand, you with really want partner Okay. the to That's more helpful. side, And

work seen mentioned hand, other of you the want they more, do balance? "Okay, you well, change you that really went, it, payment. with that probably then How Because kind partnered you I where Shopify, to How want areas and much?" do at handle some guys? there's that of dynamic for does that point like you do like, we've kind to with On like,

Travis Hess

a I is it's obviously, think a We big strategic advantage. mean, monolith. Shop

forward. I going think native in platform more the capabilities within some make more or superfluous, and of is will partners and today eliminate those that concern be market

could partners far we I and think, a possibly we're us, for outpace that opposite, embracing perspective disruption innovation from than the ever do ourselves. can us

do specific partner commercially, could thing more "easier," mean bundle create and And is future. think capabilities technically. to best ingestible And those industry I to and and precompose and want optionality the markets by customers oriented and specific a we operationally the segments. now in affordable that capability I

more as and lot to and industries And of us. we're markets, a market deeper them because, us enthusiasm it's also and we're with way much getting market them drive I oriented certain by differentiate more precomposed in from going with essentially, see think TCO you'll those our bundling partners So certain they encouraging, of own can and that of spaces creating within in accelerators to marketplace efficacy. capabilities

philosophically the this aspect So I stronger, and materially partner with of getting that. going forward. business aligned only We're deeper see doing

Operator

And the question with next comes Morgan Baer, Stanley. Josh from

Josh Baer

little the bit. account I wanted number to a unpack enterprise

landscape just can down number? could of adds? any some break the around if could there there. competitive Is are If maybe churn? you you the We challenges discuss wondering impacting start change that Just gross to the

Daniel Lentz

quarters, of but last question, the positive revenue for the Josh. for We're on couple stabilization the aiming in growth. We've stabilization. of course account. for over per we've trends, we're aiming average obviously, some not that Thanks say seen I would seen

as that relatively course has trend about often X% X.X upmarket of as moved want average deal year. would okay years a both ultimately, dollarized the the and customers of of not similar. if what It's can size the we're good. bigger I course last to We fact having it was the we up don't It's upmarket. be. pleased I've moving looked the change I flat after said we're in there's fewer customers. lot a think the in Because that retention. It's had as number growth slightly year, not good we've is see last number churn of been perspective think been be been over probably. said, a and net fairly quarters. I dollarized few That from the revenue with growth last it over

we assuming incrementally building from expect good need across We better care and our that do really take again, and building plans we're that job growing it's the be and good year. But to to get of continue to customers a pipeline need to tough to we that our there. competitively going

Josh Baer

Okay. Got it.

So the within you're upmarket? enterprise you're saying number, definition, account that moving within

Daniel Lentz

correct. that's Yes,

Josh Baer

but And side, don't to you I low- think 'XX, I number. the prepared reflected then guidance. that in remarks in margin Within think your Daniel, account on expansion operating mentioned that's Got mid-single-digit in margin the it.

of you clarify. help to If kind could

Daniel Lentz

point. a That's great

expansion. on but ramp at a opening And at for we wanted a aiming year, across think look we're X you beat taking wanted guidance, were year to business. the mid-single-digit bit a ultimately stance we to points we of little said I for. What to guide, we XXX going year basis this into aiming opening are we're margin ended what the expect expansion and of were Our we where conservative year up the we things. last for if across be communicate We for clear what our shooting in as

hit. a we need for and a settling this number the make we because taking where because that that outlook we we so we is to expansion year and to are derisked can and need we're need do be clear we're a wanted do into But We rate to the we better, reaccelerate we on have sure the basis. on also going think guidance that profitably. was wanted to it feel not clear we guidance, First, revenue conservative to we know growth, an growth both that

I year, And to get our throughout so according the expect plan, as year. profit we if we take we as across up guidance proceed execute to the

Operator

comes next with JPMorgan. from Mark the Murphy, And question

Arti Vula

through whether disruption going your there's any and settling been like feel remarks, in leaders areas. you and Murphy. new in Arti you've Can been personnel lot as process? you've been is a as of those functional multiple Travis, bringing you to This mentioned people in rank-and-file Mark for this in you business are about talk the successful how on across

Travis Hess

fantastic. added in lot in right this The in the out folks transparent of I now are has sense adjacent order street very there in we question. Great a where the been transformation. the by settlement we've market. been the been about We're as there's areas. in which has deliberate talent we've fortuitous Obviously, that of part mean, deliberately consolidation very due to

several and really are job in, the we've share that so have why the and the I to to that very the access saw took see experienced has our been and originally I of that coming just We And vision certainly and recent, are them and SKOs Rob potential fortunate last [ over Ameras of in EMEA both and which fantastic. Obviously, Michelle January. couple been of here, joined weeks. came ] folks the upside out

that you'll things a mid-March, start of So get be we're New all folks the most here the Investor will in nice how to seeing together We're of visible changes and business. the our out think good share to lot across of shared I and and which enthusiasm. The continue feel York assets trickle was that like web external-facing around Day that, that really and to walls excited primarily some messaging which encouraged tangible outside sign everyone we with here and remainder by. But yes, in at stuff of then about that adjusting. HX, you they're really the the X

Arti Vula

that of levers and accelerate -- you even or further contemplating? the the year And throughout into expectations Daniel, going than factors cause accelerate you're currently are ARR assumptions what when ARR for could gradually you maybe can about to your that kind to what growth growth talk

Daniel Lentz

calls. also perspective, growing I retention the a before our times set of several customer about base, revenue much driving transformation as of if we headcount I growth capacity. have been, within question. would on cost-effective think in we primary end which past, which overfocused doing are means I levers effectively little driving both is we've more a when growth, bit think, the our doubling we've on that's also a at account way is view, than a we're net new sales from look on of creating a from what talked you added on being previous That of account point our high say focused quota-carrying teams Good and very

we're this and This if what to a future grow grow, making bundles, as ramp. product that We investments we're to we're I think to provides, prudent which of of you a a approach rate which than or about a leaning lot growth growth far growth lot at a in staffing in we're levers, at it So levers clear, same because it things at faster take currently staffing looks it's There's on taking a and looking we're in outlook very in we've this I to think the the point, we a if But we'll that very, going to that this think add self-serve, business, yet staffing talk about related business; our is really team. is not our business. that on way. And that getting stack, whether This do changes the perspective, before. not different the to into is Travis' out are in side, operated operating have the from other a Catalyst working been of have than payments Investor market. to lot market. But on Feedonomics be how we same most there's seen not this motion. Day,

success. and that go replaced We're operations, just need off We really execute show that. lion's across the senior customer can have. team share have and do marketing, we team we to sales, We the enthused of executive about that the

Travis Hess

of BXB, BXB one not largest, on one that. bit nearly we're market. Like, on in the today. add as XX,XXX in I'll the net the bookings SaaS platform BXB of XXXX BXB-oriented got example, And half of if color we've new accounts as Arguably, an Over were player well. our largest,

That's own to information. with to some by customer sales publicly management available functions our treated service that You would and and go-to-market target it industry and team, before. that our account team, industries opposed our never know to we've to as team our additional existed team its as going and features never proposition. bifurcating value BXB adjacent site Historically, our

a things core speak to suite offerings, BXB more things drive a going X products. lot efficacy, across like you're authenticity, in our business, that. so and to forward a lot to going able more those to small of the see The kind be whole spirit we're we'll presumption of of And lot is BXC, and around going

Operator

And Berg the next comes question with Needham. Scott from

Scott Berg

some make in got and January. I've CROs think come in, their the CRO, I new was Travis, late we Oftentimes, let's see of came X. with own start that it changes. Ron, in just

through been in kind brought discussions course, sales, changes all in our done? we of and running last should what you've already of that's Ron and you've he I to there. playbook a make expect just efforts, the guess But implemented? to revamp made some year obviously is You, lot were disruption create Or further go-to-market

Travis Hess

It's a great question.

in was it a and came think a remit I kind I changes. unique the lot made it's unique in those of -- a sense of that

to is execute against going it. Rob So largely,

mine, last strategy That quite time, has what summer However, our I already greater he one is the do. philosophically at product within of skill put in it. find rich that long a most across aligned of lines: with was other was actually He's several of and starting got is aspects had was Oro. it Salesforce history I Cloud bigger at frankly. and Amplience at Commerce the motion attractive executing kind also about that got sets we're with leaders quite of a the unique recently, against. to and, we and for ChannelAdvisor, the place organization would What's X than was all very Rob's argue I tangible experience be him lot to complementary them at a of

here. And execution I It's of of a changes and all -- months to had would him. the aligned. prior? disruptive like fortunate about have at point. X of selfishly, that It really all infrastructure I accelerated in any course. things have kind framework place. The be Yes, him have yes, to loved this was He's So perfectly But not that. is or would excited expect to

Scott Berg

any follow-up, any guess, is all. Can what you and Understood. fruitful, Klarna see that's if kind is on if economic there sort to the forward? partnership. explain, a if from saw or And the help benefit then going Daniel, benefit I there's you maybe I announcement of that relationship of didn't I

Daniel Lentz

clarifying real quick Scott, question. a

up just broke bit. You a little

You announcement? which saw

Scott Berg

them. the about The Klarna announcement in press partnership your with release

Daniel Lentz

something at something it's think about lot I Investor and really excited New obviously it's about, more detail probably mean, talk in I in York. our a we'll we're Day

Operator

And comes with Peterson, James. Raymond Instructions] Brian question [Operator from next the

Brian Peterson

seeing you the in half you into think to new terms you BXB investments, bookings that of stat incremental XXXX what how up BXB you're in of wanted I'd kind about follow year. as market, on of that what curious and ramp displacing. gave XXXX? I being And quickly are Travis, this can maybe up on be guys the inertia

Travis Hess

obviously are Great doing small say for a or along is that behind accounts, just with would those math pretty the of for that question. we're a retail of opportunities. seeing business combination I there accounts, XX,XXX encouraging. And just trends clarity, the accounts enterprise scenes. The it's spectrum

looking you're there. On really and played to really, budgets. smaller lot feel well side, of operation seeing distributors a digitize we've greenfield smaller the manufacturers very with their We quickly

of certainly we've So for advantage but take can they got something really capabilities to time, them grow quickly. into over

typically targeted more it a or there, are with certain certain building We're So replacement, on global other nature appropriately. And sort it over. we're homegrown of legacy seeing very in sort rip strategy, out model out obviously, then replace stuff, it land-and-expand out seeing legacy opportunities, within other seeing of, and meaty addressing anyone either enterprise the organizations. The technical X extreme, big, approaches. you're something stuff. long in kind and and within within of Depending those upper on acumen larger Either than that not model you're the global of really their SAP rip and complexity it, their business days we're of very, displacing of straight evangelizing own a then replacement. Magento and starting else, a big bang, X and seeing line operational the the of that of of displacement starting seeing mid-market, you're business, mid-market. The a or that market, lack something Adobe

back-office labor, centered call to I businesses to new onto making composability of more eliminating same us very also truth, operations of all in it. out savings think synthesizing But effective with driving is costs effective, really has serving around framework M&A ingest typically sources future of multiple kind as more be doing cost BXB a lent to as teams approach while of dynamic and our a framework. also sales know, able center that you through be and automating FTE field

for meaty very transformational providers. nature, services very in So

agency feel material So a enthusiastic right caffeine, about we've well. my despite lot place exciting a And it got win. and GSI partners we actually space. can't of if a tone differentiation and of our to very for is you from as that tell the Obviously, voice, really certainly,

Operator

The of next Sachs. Borges, from question is Goldman Gabriela

Gabriela Borges

I Travis, look to you comments level-set gotten the as last the As months from I earlier us you follow in enterprise, several on where pipeline the up wanted part pipeline, ] already over on at land? [ are some you're enterprise then of competitors, that, dug from your homebuilt logos maybe mentioned where think of of of coming And give Can the or and versus know Shopify your in broadly. enterprise open maybe you've competition, and us the Shopify to versus winning homegrown, your you as competitors broadly. solutions? closed you just . more they in more your versus new some the lay versus

Travis Hess

I let's just seeing would about say We're BXC. seeing delineate and kind Great where question, side, we're I that. it BXB Gabriela. BXB of talked the between upmarket.

advantage You're our out-of-the-box capabilities of taking mid-market seeing of both kind kind there. BXB of

seeing running making expanding typically our targeted and -- deliberate of meaty On is doing custom that sort These year we're is. Usually really bit be what are around side, the got around the on capability a something that what kind they're running they've folks product broad. very, stuff, these and SAP, global CPQ are or of and homegrown to that big more big approach very enterprise about this you're opportunities. it the like

that think the wider I gets, your is. robust ultimately TAM more the capability

seeing then anything They've business now, those efficiency, healthy never looking that we're drive to it. the being They sorts about they're opportunities in within you're mix kind It's before. of take seeing of very of of digitized that how approaching advantage it but of agility, a quick are want they're And still those is BXB. so right deliberate and to greenfield both. it. And fair market cost amount a

comfortable or transformation. And framework and to take time just months are those own now who sell. long Obviously, big speaking, need couple sorts go of that business. capabilities seeing definitive more their and us. Hopefully, last their can't would what a themselves of Less BXC really, accelerate that. the that's sort Daniel's although we've larger And seen there around the composability. some we an points the in On and are embracement composability, around flexibility, the branded without is downsides and agility oriented or they're the global to want I around concept transformational side, manufacturers. And nuance would composability curated of say, of their complicated are They of trends. But in we're really of of and to that is deals a they deals time that's our earlier, very retail, very to generally uptick so embracement an There to seeing we they at to achieved requirements larger but feel the risk. helpful. be those are advantage taking precomposed with scale, of the and other There's ecosystem There cost, lend nuances through composability. look to starting this competitors would see. embrace

Daniel Lentz

new upon briefly, just spend answer multiple logos, it's number a then say of on a the it's the of a specifically one. And say Magento other time of across perspective, competitors. logo Commerce from Shopify depending different Salesforce with we concentrated platforms obviously, a the it's I lot and I lot competing I'd across Plus, with win wouldn't competitors. region. mean, Cloud,

Gabriela Borges

to perspective we've to to larger want enterprise strong, given the here getting consumer macro you're while at then is heard the weaker, is because that's a environment I risk-averse positioned volume the ] your Travis, likely Absolutely. year high, likely when side, change I'm be on makes changes. versus change. less it making when is you're [ in to more on but the what think likely in also probably What less any for is to flip consumer when give more enterprises uniquely transaction might

get So to what more love would for align [indiscernible] XXXX. enterprises hear have are excited about that factors to just the to

Travis Hess

I biggest to mitigation, is around risk thing think the upmarket quite me frankly.

organizations, are with to market, going of are that I independent lead mitigating risk. large think these

future else anyone a there incumbent use current address that of we what think an And I biggest and with things Certainly, would requirements, the timing so can that's and locked that cyclical a around the their needs contract determinant. being like. looks comfort into and are or and cases level

the might cycle. ago, how last starting to I technology today realize, can think doing XX- you are folks actually to XX-month went versus a they faster Gabriela, about the what have time maybe what years is That this. implement much been X

ago You're and thought accomplish process cost. starting and comfortable now did they to years of see a X them that with able getting being in cut in the half to time what fraction that of

they more normalized. you increased happen mitigation. feel old I like And a being going comfortable is to that? think wildly way, think branded months, all Do retailer. continue able risk centers around going platform disruptive a see trend or Because become see large I that years accomplish the to as see organically, you're that demand. But manufacturer X to to to and distracting XX and you're in it implement

that's come think down, peak, time cost you're of to going So helpful. demand if and as has I sort that see

Operator

UBS. Chris And Zhang, the with next question comes from

Chris Zhang

customer or you and cost since the customers? a with is BXB the at feedback just Catalyst. question the talk resonating maybe how I BXC and And the on functionality your can about January savings have launch NRF

Travis Hess

and broader had, accelerated we and of Catalyst And the is audience, -- a in needs way run be the NRF to now way cases the a and to mid-January. agility the on dozen that it love that's the I know, or I our all freedom the that They it mean, go they run able the more or kind to and is XX% kind of be in early on compose it. to Not optionality. launched it. to embracing that not is speed don't that the everyone. they philosophically, going We certainly producing use of that like okay. things For very to the around shapes clients a in views like it's to in world subset turn maps we're future. mean, very, to in And for will able everyone assumes sizes. Listen, market not quickly. reference I a go their Certainly, market of way, it specific architecture

sort the you'll and bigger and architecture allow and the take doing markets. cost with we need it is of where industries, of will us in to associated transformation are market curated of version accelerated that I of risk feel specific unlock specifically see industries orient Catalyst and it. benefits, and to the that think very precomposed, itself especially usually or reference some And those to today without underserviced all complexity the timeline of can advantage composability take the

bundling benefits commercially, be, So that obviously, you on dots kind bundling us. That's taking can connect of the operationally all would to it everything bundling of it of technically. the where the And probably side. and that what Catalyst we're

Chris Zhang

is in on if the ? color more I on if that the to be the give your that FX [indiscernible] And the would how some hear Day. more Investor at look can definitely maybe right. assumption, some And you of that's helpful. important the of full just then cadence, year share All will side, financial guide, a much Appreciate just color. And maybe as can follow-up you

Daniel Lentz

for small. exposure U.S. almost long point dollars. FX exclusively The view, very is a exposure From it's us of

in and other We so have of FX basis. we exposures constant But don't report currency on the exposures are areas small an point from short results payroll even a view.

this As capabilities, material time. foreign will we and just we exchange exposure. billing continue with the business eventually to at up sophisticated grow more It's not to develop end more

Operator

conference you. I turn to Travis closing Thank session. question-and-answer would back over This comments. any Hess, to CEO, like our concludes the for

Travis Hess

for joining our changes excited today. we've thank date. it's to work where made I to that I'm everyone time to And we want to really for certainly and call get now are the to and the forward to for York, come. joining. excited New more. looking of Day several for alluded And many things we've which to execute, Thank yes, times. Really you sharing in you Investor seeing at

Operator

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

You lines. disconnect your may now

BigCommerce (BIGC) 20 Feb 252024 Q4 Earnings call transcript