As shoppers shift to AI search, brands must optimize their data or risk missing opportunities to drive traffic and sales Join the Perplexity beta program here: https://www.bigcommerce.com/dm/perplexity-beta-program/ About BigCommerce BigCommerce (Nasdaq: BIGC) is a leading open SaaS and composable ecommerce platform that empowers brands, retailers, manufacturers and distributors of all sizes to build, innovate and grow their businesses online. BigCommerce provides its customers sophisticated professional-gr ...

Summary of BigCommerce (BIGC) 2025 Conference Call Company Overview - **Company**: BigCommerce - **Industry**: E-commerce technology - **Key Products**: - BigCommerce: A leading e-commerce SaaS platform for managing online stores and connecting product catalogs to various channels [6][7] - Feedonomics: An AI-based feed management solution that optimizes product data for advertising across multiple platforms [7][8] - MakeSwift: A visual editor and design system for no-code or low-code website management [9][10] Financial Performance - **Annual Recurring Revenue (ARR)**: Approximately $350 million, with 75% from enterprise customers [11] - **Customer Base**: About 6,000 enterprise customers, with an average revenue of $45,000 per customer [12] - **Cash Flow Improvement**: A $120 million swing in cash flow over the last two years, with a nearly 30% improvement in profit margin [12][13] Strategic Focus Areas - **Growth Acceleration**: The primary focus for the year is to accelerate ARR growth, with initiatives to increase wallet share, expand Total Addressable Market (TAM), and enhance B2B offerings [26][30][34] - **Bundling Solutions**: Plans to bundle technology partner solutions with core products to create a unified customer experience [28][29] - **B2B Market Expansion**: BigCommerce is one of the largest B2B platforms, with over 12,000 B2B accounts contributing significantly to new bookings growth [33][34] Competitive Positioning - **Market Position**: Positioned between monolithic solutions and highly customizable platforms, aiming to provide flexibility without complexity [23][25] - **B2B vs. B2C Dynamics**: B2B decisions are driven by cost and time savings, while B2C focuses on conversion optimization and discoverability [43][45] Product Development and AI Integration - **AI Utilization**: Internally, AI is used for customer support and sales enablement, enhancing efficiency and effectiveness of sales representatives [69][71] - **Feedonomics Role**: Feedonomics is positioned to capitalize on trends in AI and e-commerce, optimizing data feeds for various platforms [54][57] Future Outlook - **Sustainable Growth Potential**: The company believes it can achieve sustainable growth in the teens, with a focus on maintaining or improving profit margins [51][52] - **Investment in AI**: Continued investment in AI and commerce is seen as a significant opportunity for future growth [35][36] Additional Insights - **Customer Acquisition**: New customers often come from outdated in-house systems or competitors with complex implementations [38][40] - **Sales Strategy**: A shift from a marketing-led approach to a sales-led strategy is underway, with a focus on efficiency and territory management [48][49] This summary encapsulates the key points discussed during the BigCommerce conference call, highlighting the company's strategic direction, financial performance, and market positioning.

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a non-GAAP operating income of $7.6 million, reflecting a margin improvement of 530 basis points year over year [10] - The annual revenue run rate (ARR) reached $351 million, a year-over-year increase of 3% [25] - Total revenue for the quarter was $82.4 million, also growing 3% year over year, with operating cash flow approximately $400,000, an improvement of nearly $4 million year over year [10][25] - Non-GAAP gross margin strengthened to 80.3%, up 240 basis points year over year, while non-GAAP operating income margin finished at 9.2%, up 530 basis points from Q1 2024 [25] Business Line Data and Key Metrics Changes - The company serves 5,825 enterprise accounts, with average revenue per enterprise account exceeding $45,000, a 9% increase year over year [25] - B2B continues to grow as a percentage of overall business, with new capabilities tailored to complex B2B needs being released [15][16] - In B2C, the company is focusing on operationally complex categories outside traditional sectors, achieving successful launches with brands like Euro Optic and Kittery Trading Post [17][18] Market Data and Key Metrics Changes - The company is closely monitoring global trade and tariff changes, which could impact customers operating across borders [28] - Partner and services revenue (PSR) constitutes approximately 25% of total revenues, driven by transaction volumes from technology partners [28] Company Strategy and Development Direction - The company has set three strategic priorities for 2025: accelerating revenue growth profitably, disciplined operational execution, and executing a go-to-market transformation plan [9] - Key initiatives include launching a self-serve version of MakeSwift and Feedonomics, and developing bundled solutions with partners [20][21] - AI is a major focus area, with plans to leverage AI for sales and support efficiency, as well as enhancing product data syndication [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that 2025 will be challenging but sees tremendous opportunities ahead [11] - The company is maintaining a cautious view on macroeconomic uncertainties and is prepared to provide flexible solutions to customers [28][29] - Guidance for Q2 expects revenue between $82.5 million and $83.5 million, with a full-year revenue guidance range widened to $335 million to $351 million [30] Other Important Information - The company has reduced its net debt position to $32.2 million, a 59% decrease year over year [26] - The leadership team has been strengthened with new hires in key positions, enhancing product and engineering capabilities [14] Q&A Session Summary Question: Can you discuss the encouraging signs mentioned regarding the pipeline? - Management noted a significant increase in the size of the pipeline, particularly in B2B, and highlighted the completion of the leadership team as a positive internal indicator [35] Question: How flexible is the company regarding investment levels in light of macro changes? - Management indicated a cautious approach to spending while maintaining the ability to invest in high ROI areas, particularly in AI [39][40] Question: What is the status of the payment strategy and its integration with existing partners? - The company aims to provide optionality to customers, with Klarna becoming a preferred partner and plans for an integrated payment solution expected in early 2026 [54][56] Question: How does the company handle potential downgrades in subscription tiers due to GMV changes? - Management explained that their pricing model is based on order volume, which moderates the impact of sudden changes in GMV, making revenue more predictable [60][61] Question: What is the profile of the new sales representatives added? - The company is focusing on hiring experienced sales representatives while also bringing in younger talent, with an expected onboarding period of about six months [66][70] Question: What needs to happen for the company to reach the high end of its guidance? - Management indicated that continued pipeline growth and effective marketing investments are crucial, while avoiding recessionary pressures is also important [48][49]

Financial Performance - Total revenue for the first quarter of 2025 was $82.4 million, representing a 3% increase compared to the same period in 2024 [7] - Total annual revenue run-rate (ARR) as of March 31, 2025, was $350.8 million, also up 3% year-over-year [7] - Subscription solutions revenue reached $62.1 million, a 2% increase from the first quarter of 2024 [7] - ARR from enterprise accounts was $263.8 million, marking a 6% increase year-over-year, with enterprise accounts constituting 75% of total ARR [7] - GAAP gross margin improved to 79%, up from 77% in the first quarter of 2024, while non-GAAP gross margin increased to 80% from 78% [7] - The company reported a GAAP loss from operations of $2.4 million, significantly reduced from a loss of $8.2 million in the prior year [7] - Non-GAAP operating income was $7.6 million, compared to $3.2 million in the first quarter of 2024 [7] Business Strategy and Leadership - The CEO of BigCommerce highlighted ongoing transformation efforts, including positive increases in pipeline and leads, and emphasized the importance of reaccelerating growth [2] - The company has brought in new leadership with expertise in SaaS and commerce to strengthen its core offerings [2] - BigCommerce hosted its 2025 Investor Day to discuss strategic vision, product offerings, and long-term growth opportunities [12] Product and Customer Developments - BigCommerce announced updates to its Catalyst storefront technology, enhancing marketing usability and performance [12] - New B2B product enhancements were introduced to improve sales team efficiency and streamline processes [12] - The company launched a three-pronged product initiative to enhance the app-building experience for developers [12] - Notable customer migrations included Kittery Trading Post and EGO, showcasing the platform's capabilities [12] Cash Flow and Financial Outlook - Cash, cash equivalents, restricted cash, and marketable securities totaled $121.9 million as of March 31, 2025 [13] - Net cash provided by operating activities was $401 thousand, a significant improvement from a cash outflow of $3.4 million in the same period in 2024 [13] - The company expects total revenue for the second quarter of 2025 to be between $82.5 million and $83.5 million [15]