Summary of BigCommerce FY Conference Call Company Overview - **Company**: BigCommerce (NasdaqGM: BIGC) - **Industry**: E-commerce platform Key Points and Arguments Performance and Market Trends - The company reported a good start to the quarter, with expectations to see how the full holiday season plays out [3][4] - There has been a notable shift in the industry towards technology impacting discoverability and traffic, particularly with the rise of large language models (LLMs) [5][6] - Merchants are experiencing traffic changes but lack visibility on traffic sources due to reduced pixel tracking capabilities [6][8] - The demand environment has shifted, with less impact from tariffs than initially expected [7][8] Transformation and Growth Strategy - BigCommerce is undergoing a significant transformation, focusing on operational improvements and integrating acquisitions more effectively [11][12] - The company aims to shift from a sales-led growth model to a product-led growth model, enhancing customer retention and expansion [13][17] - New product initiatives include a freemium model for Feedonomics, aimed at making data transformation services more accessible [19][20] - The company is focusing on improving net revenue retention rates, which have been around 100%, with a target of 105%-108% for better performance [22][23] Product Development and Market Position - BigCommerce is introducing a branded payments solution to simplify transactions for small and mid-market businesses [26][28] - The company is committed to maintaining flexibility for customers while also providing integrated solutions to enhance user experience [29][30] - Partnerships with firms like Accenture are being leveraged to enhance service offerings without becoming a services business [37][38] Competitive Landscape and Future Outlook - The e-commerce landscape is evolving, with LLMs changing the discoverability and search experience, potentially impacting traditional search engines [41][42] - BigCommerce sees itself as a key player in the Merchant of Record lane, focusing on compliance and collaboration with other players in the market [43][44] - The company is cautious about entering new markets or expanding through M&A, preferring to build and partner strategically [34][35] Financial Health and Efficiency - BigCommerce has improved its financial profile, becoming profitable and cash-flow positive while reducing net debt by over 90% in the last 18 months [50][52] - The focus remains on improving customer acquisition costs and overall efficiency to drive better growth and profitability [48][53] Conclusion - BigCommerce is positioned to enhance its growth trajectory through strategic transformations, product innovations, and improved customer engagement, while navigating the evolving e-commerce landscape and competitive pressures [54][55]

Core Insights - Commerce.com, formerly known as BigCommerce, is focusing on AI-driven products to enhance its eCommerce platform and reported $86 million in Q3 revenue, aligning with guidance [3][8] - The company is launching new tools and partnerships, including Feedonomics Surface and PayPal-powered payments, to expand monetization and improve customer retention [1][7] Financial Performance - Annual recurring revenue reached $356 million, a 2% increase year-over-year, with 76% derived from enterprise clients whose average revenue per account rose 7% to $46,800 [7] - For Q4, Commerce.com anticipates revenue between $87.8 million and $92.8 million [8] AI and Market Strategy - CEO Travis Hess emphasized that AI is transforming how customers discover and purchase products, with a shift towards intelligent, agentic commerce [4][10] - The company is leveraging partnerships with major platforms like PayPal, Shopify, and Microsoft to enhance its data management and payment capabilities [5][6] Product Development - The introduction of Feedonomics Surface allows merchants to optimize product feeds across platforms like Google and Meta directly from their control panels [6] - The Makeswift tool enables marketers to create AI-optimized site experiences without coding, further enhancing user engagement [5] Market Trends - Demand trends are strongest around AI readiness and data strategy, with significant interest from large brand manufacturers and retailers in AI-readiness programs ahead of the holiday season [9]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $86 million, a 3% year-over-year increase, 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] - Operating cash flow was approximately $11 million, marking the second consecutive quarter of double-digit operating cash flow margin [15] Business Line Data and Key Metrics Changes - Non-GAAP gross margin attained at 79%, maintaining cost discipline while reinvesting in product development and sales enablement [16] - 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] Market Data and Key Metrics Changes - Enterprise ARR represented 76% of total ARR compared to 74% the prior year [16] - IDC validated the platform's impact, finding B2B Edition customers achieved a 391% three-year ROI and an 82% improvement in platform stability [8] Company Strategy and Development Direction - The company is focused on scaling profitable, sustainable growth across core offerings, emphasizing AI's role in reshaping commerce [5][6] - Partnerships with major players like PayPal, Microsoft, and Google are aimed at enhancing the company's position in an AI-led future [7][8] - The launch of new products like Feedonomics Surface and Makeswift is part of a strategy to unify the product portfolio and enhance customer experience [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming holiday season, citing strong signals from AI readiness initiatives with large brand manufacturers [26][27] - The company is focused on efficiency and operating leverage, with expectations for improved sales and marketing expense efficiency [20][39] - Management acknowledged the need for faster growth and profitability, emphasizing ongoing investments in product innovation and solutions bundling [12][20] Other Important Information - The company closed Q3 with approximately $143 million in cash and cash equivalents, reflecting a strong financial position [16] - Net debt position decreased by 86% since Q3 of 2023, now just under $11 million [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 a function of net revenue retention, which remains strong [22][23] Question: Strong signals for the holiday season - Management highlighted momentum around AI initiatives and partnerships, particularly with Accenture, as key drivers for expected 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 competitive advantage in the evolving landscape of commerce [31][32][34] Question: Guidance for Q4 revenue and margin progression - Management provided a wide guidance range for Q4, reflecting cautious optimism based on consumer behavior and holiday shopping trends [36][37] Question: Impact of PayPal partnership on P&L - Management clarified that while the partnership will generate revenue, it will not transform the P&L into a fintech model, maintaining high-margin revenue expectations [56][58] Question: Demand environment and pipeline of opportunities - Management indicated that while B2B demand remains solid, B2C demand has softened due to shifts in focus towards AI initiatives [72][74]

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 has launched Feedonomics Surface, a new solution aimed at simplifying and automating the management of product feeds for advertising channels like Google Shopping and Meta [1][2][3] Group 1: Product Features - Feedonomics Surface allows merchants to create, manage, and synchronize high-quality product feeds without extensive technical knowledge, enhancing return on advertising spending [2][3] - The solution provides streamlined access to major platforms, enabling quick market reach expansion for merchants [5] - It leverages AI and automation for product categorization, feed creation, and synchronization, significantly reducing technical complexity and saving time [5] Group 2: Merchant Benefits - Merchants benefit from reliable and accurate data, with automated syncing minimizing errors and maximizing performance [5] - The solution is scalable, starting with a free version and allowing seamless upgrades as business data needs grow [5] - Merchants have direct control over their product data, with options for manual overrides and large-scale transformations to optimize data for each channel [5] Group 3: Future Developments - Commerce plans to enhance Feedonomics Surface with additional AI features, advertising channels, and generative AI capabilities for data optimization [4]

Core Insights - BigCommerce and Feedonomics have announced a strengthened partnership with Google Cloud to enhance merchant performance through advanced AI tools [1][2][3] Group 1: Partnership and Innovations - The collaboration aims to improve product discoverability and increase conversion rates for BigCommerce merchants within the Google Cloud ecosystem [2] - Key innovations include Feedonomics Surface for optimizing product data delivery to Google Merchant Center, enhancing visibility across sales channels [6] - AI-powered data enrichment features will allow merchants to automatically enhance product catalogs, improving search performance and conversion rates [6] Group 2: Benefits for Merchants - The partnership provides merchants with enterprise-grade scalability, security, and performance necessary for success in the evolving agentic commerce landscape [3] - Advanced developer tools, combining BigCommerce's Model Context Protocol with Google's Agent Development Kit, will enable the creation of intelligent, commerce-aware merchant agents [6] Group 3: Company Backgrounds - BigCommerce is a leading open SaaS ecommerce platform serving B2C and B2B businesses globally, with a diverse customer base across 150 countries [4] - Feedonomics is a prominent data management platform that supports omnichannel growth for top brands and retailers, with numerous integrations and partnerships [5]