Commerce.com (CMRC) Q4 2025 Earnings Transcript

Core Insights - The company reported revenue of $342 million, a 3% increase year over year, and a non-GAAP operating income of $28 million, indicating strong cash generation improvements [1][17] - The company executed a long-term strategy focused on simplifying operations, realigning investments, and building infrastructure to adapt to AI and agentic commerce [1][6] - The company achieved significant operational improvements in 2025, laying the groundwork for sustainable growth [2][6] Financial Performance - Subscription ARR saw its highest sequential improvement in over a year and a half during Q4 [1] - The company ended 2025 with $359 million in ARR and a cash position of $143 million, with no material debt maturities until 2030 [18][16] - Operating cash flow was $3 million in Q4 and $27 million for the full year, reflecting improved operational controls [18] Market Position and Strategy - The company rebranded as Commerce.com, Inc., emphasizing its unified platform across storefronts, product data, experience, and payments [5] - B2B-oriented customers represented the majority of new platform ARR, with a nearly 20% growth in subscription ARR from BigCommerce B2B Edition [6][7] - The company launched Surface, a self-service version of Feedonomics, which resulted in a 24-point higher GMV growth for users compared to non-users [8][10] Product Innovation and Partnerships - The company expanded partnerships with major players like OpenAI, Microsoft, and Google to enhance its AI capabilities [10] - BigCommerce Payments is set to launch around 2026, aimed at providing small and midsized merchants with a streamlined payment solution [11][63] - The company plans to increase R&D investment by nearly 30% in 2026, focusing on AI capabilities, expanding Feedonomics, and enhancing payment solutions [12][24] Key Metrics and Guidance - The company reported a GMV of nearly $32 billion in 2025, with consistent double-digit growth [14][21] - Net revenue retention (NRR) was 95.2% in Q4, reflecting the company's ability to grow within its customer base [22][68] - For Q1 2026, the company expects revenue between $82.5 million and $83.5 million, and for the full year, revenue guidance is between $347.5 million and $369.5 million [23][24]