Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $86 million, a 3% increase year over year, consistent with guidance [15] - Non-GAAP operating income reached $8 million, exceeding the high end of profitability guidance by nearly $5 million, representing a 413 basis points improvement year over year [15][19] - Annual revenue run rate at the end of Q3 was approximately $356 million, with 76% of ARR coming from enterprise plans [14][16] - Non-GAAP gross margin attained at 79%, with operating cash flow approximately $11 million, marking the second consecutive quarter of double-digit operating cash flow margin [16] Business Line Data and Key Metrics Changes - Partner and services revenue grew modestly to just above $21 million, up 2% year over year [16] - Average revenue per enterprise account reached $46,806, a 7% increase from Q3 of last year [16] - The launch of Feedonomics Surface, a feed management product, aims to enhance product visibility and optimization for merchants [10][12] Market Data and Key Metrics Changes - The company continues to attract respected brands in the B2B sector, with notable new clients including ADI Global and Pantone [9] - IDC's study found that B2B Edition customers achieved a 391% three-year ROI and an 82% improvement in platform stability [9] Company Strategy and Development Direction - The company is focused on scaling profitable, sustainable growth across core offerings, emphasizing AI's role in transforming commerce [5][6] - Partnerships with major players like PayPal and Microsoft are aimed at enhancing agentic commerce capabilities [8][12] - The company is committed to unifying its product portfolio and expanding its offerings to small and mid-sized businesses [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming holiday season, citing strong signals from AI readiness initiatives [25][26] - The company aims to improve sales and marketing efficiency and is focused on responsible scaling and profitable growth [19][37] - Management acknowledged the need for faster growth and profitability while highlighting the importance of product innovation and market efficiency [12][19] Other Important Information - The company closed Q3 with approximately $143 million in cash and marketable securities, reflecting a strong financial position [16] - Net debt position decreased by 86% since Q3 of 2023, indicating improved financial health [16] Q&A Session Summary Question: Sequential decline in enterprise ARR and customer count - Management noted that the decline reflects progress through the year and is primarily due to net revenue retention challenges, maintaining a similar retention rate as previous years [22][23] Question: Strong signals for the holiday season - Management highlighted momentum around AI initiatives and partnerships, indicating a positive outlook for B2C and B2B performance during the holiday season [25][26] Question: Competitive dynamics regarding discoverability - Management emphasized the importance of data quality, both structured and unstructured, as a key competitive advantage in the evolving e-commerce landscape [31][33] Question: Guidance for Q4 revenue and margin progression - Management provided a wide revenue guidance range for Q4, reflecting cautious optimism based on consumer behavior during the holiday shopping season [34][35] Question: Impact of PayPal partnership on RPO - Management clarified that while some elements of the PayPal agreement may not directly impact RPO, other economic arrangements will contribute positively [49] Question: Future product rollouts and Feedonomics Surface - Management expressed excitement about Feedonomics Surface and its potential for product-led growth, with plans to extend its capabilities beyond BigCommerce customers [41][42][46]

Core Insights - Commerce.com, Inc. reported a total revenue of $86.0 million for Q3 2025, reflecting a 3% increase compared to the same period in 2024. The total annual revenue run-rate (ARR) reached $355.7 million, up 2% year-over-year [1][6] - The company emphasized its focus on sustainable growth through strategic partnerships with AI leaders and adapting to changing buyer behavior, which is driving momentum in both B2B and B2C sectors [2] Financial Highlights - Subscription solutions revenue was $64.7 million, a 3% increase from Q3 2024 [6] - Enterprise ARR was $269.2 million, marking a 5% increase from the previous year, with enterprise accounts constituting 76% of total ARR [6] - GAAP gross margin improved to 78%, up from 76% in Q3 2024, while non-GAAP gross margin rose to 79% from 78% [6] - The number of enterprise accounts decreased by 2% to 5,751, but the average revenue per account (ARPA) increased by 7% to $46,806 [6] - GAAP net loss narrowed to $2.2 million from $7.0 million in Q3 2024, while non-GAAP net income increased to $6.2 million, representing 7% of revenue [6] Cash Flow and Outlook - Cash, cash equivalents, and marketable securities totaled $143.2 million as of September 30, 2025. Net cash provided by operating activities was $10.6 million, compared to $5.6 million in Q3 2024 [10] - The company expects Q4 2025 revenue to be between $87.8 million and $92.8 million, with full-year revenue projected between $340.6 million and $345.6 million [10][11] Business Developments - Commerce.com announced the launch of Feedonomics Surface, a new solution aimed at optimizing product catalogs for advertising channels [10] - A new embedded payment processing solution, BigCommerce Payments, is set for a U.S. launch in 2026, with plans for international expansion [10] - The company introduced new applications in the Shopify App Store to enhance cross-platform operations for merchants [10]

Core Insights - Commerce announced a new embedded payment processing solution called BigCommerce Payments, set to launch for U.S. merchants in 2026, powered by PayPal [1][2] - This initiative marks a significant expansion of the long-standing partnership between Commerce and PayPal, enhancing payment capabilities for merchants [2][3] - The new solution aims to provide a seamless merchant experience with advanced features like buy now, pay later (BNPL) options and a unified balance dashboard [1][3] Company Overview - Commerce operates as an open, AI-driven commerce ecosystem, empowering businesses to innovate and grow [5] - The company is the parent of BigCommerce, Feedonomics, and Makeswift, connecting various tools and systems to enhance business growth [5] - Commerce serves notable clients including Coldwater Creek, Cole Haan, and Puma, providing them with essential tools for operating confidently in a dynamic market [5] Payment Solution Features - BigCommerce Payments will offer a dedicated "Money" dashboard within the BigCommerce Control Panel, allowing merchants to manage and monitor payments and balance activity [3][4] - The embedded experience will replicate key functionalities of the PayPal dashboard, streamlining payment management for merchants [3][4] - Existing merchants using PayPal Complete Payments (PPCP) will be offered a seamless transition to BigCommerce Payments [4]