Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $86 million, a 3% increase year over year, consistent with guidance [15][19] - 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 was 79%, and operating cash flow was approximately $11 million, marking the second consecutive quarter of double-digit operating cash flow margin [15][16] Business Line Data and Key Metrics Changes - The enterprise ARR represented 76% of total ARR, with average revenue per enterprise account reaching $46,806, a 7% increase from Q3 of the previous year [16] - Partner and services revenue grew modestly to just above $21 million, up 2% year over year [16] Market Data and Key Metrics Changes - The company continues to attract respected brands in the B2B space, including ADI Global and Pantone, indicating strong market momentum [8] - IDC validated the platform's impact, reporting that 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, with an emphasis on AI-driven commerce [5][6] - New products like Feedonomics Surface and Makeswift are being launched to enhance customer experience and drive growth [9][10] - The company aims to unify its product portfolio and expand its capabilities to serve small and mid-sized businesses [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 and partnerships with major brands [26][27] - The company is focused on efficiency and operating leverage, with plans to grow profitably and responsibly in 2026 [20][41] - Management acknowledged the need for faster growth and emphasized the importance of product-led growth strategies [12][41] Other Important Information - The company closed Q3 with approximately $143 million in cash and marketable securities, reflecting a strong financial position [16] - The 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 a function of net revenue retention, which remains stable [22][23] Question: Strong signals for the holiday season - Management highlighted momentum around AI initiatives and partnerships, particularly in B2C, as key drivers for 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 e-commerce landscape [31][32] Question: Guidance for Q4 revenue and margin progression - Management provided a wide guidance range for Q4, reflecting cautious optimism based on consumer behavior during the holiday shopping season [36][37] Question: Impact of PayPal partnership on P&L - Management clarified that while some elements of the partnership may not hit RPO, other economic arrangements will positively impact revenue recognition [55][56] 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% 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 - Shopify is experiencing growth driven by its Subscription solutions segment, which generated $656 million in revenue for Q2 2025, accounting for 24.5% of total revenues, reflecting a 16.5% year-over-year increase [1][10] - The extension of the paid trial period to three months for standard plans is enhancing merchant engagement and business success [2] - Shopify's platform caters to a wide range of merchants, including enterprise clients like Canada Goose and Starbucks, indicating its broad market appeal [3] Subscription Solutions Performance - Monthly Recurring Revenue (MRR) reached $185 million in Q2 2025, marking a 9.5% year-over-year increase, with Shopify Plus contributing 35% of MRR [4][10] - The growth in MRR is attributed to new merchants joining and existing merchants upgrading to higher-tier plans [4] Competitive Landscape - Shopify faces significant competition from Commerce.com and Wix.com in the e-commerce sector [5] - Commerce.com reported Subscription solutions revenue of $63.7 million in Q2 2025, up 3% year-over-year, showcasing its competitive positioning [6] - Wix.com achieved Creative Subscriptions revenue of $345.5 million in Q2 2025, reflecting an 11% year-over-year growth, indicating its strong market presence [7] Stock Performance and Valuation - Shopify's stock has increased by 29.1% year-to-date, outperforming the Zacks Computer & Technology sector's 11.8% return [8] - The stock is trading at a forward 12-month Price/Sales ratio of 14.71X, significantly higher than the sector's 9.75X [11] - The Zacks Consensus Estimate for Q3 2025 earnings is 34 cents per share, a slight decline from the previous estimate, while the estimate for 2025 earnings is $1.44 per share, indicating a 10.77% year-over-year growth [13]

Core Viewpoint - Commerce, formerly known as BigCommerce Holdings, Inc., has rebranded to unify its offerings and enhance its focus on AI-driven commerce, aiming to empower merchants in the evolving digital landscape [3][4][5]. Company Overview - Commerce has officially changed its corporate name to Commerce.com, Inc., and will trade under the ticker symbol "CMRC" on the Nasdaq Global Market starting August 1, 2025 [3]. - The rebranding integrates BigCommerce, Feedonomics, and Makeswift into a cohesive platform designed to support the next era of agentic commerce [3][6]. Strategic Vision - The company aims to enable merchants to thrive in an environment where AI acts on behalf of consumers, facilitating research, recommendations, and transactions [4][10]. - Commerce emphasizes the importance of an open, intelligent ecosystem that connects various tools and systems to drive growth and deliver personalized experiences [6][8]. Market Positioning - The shift towards AI-driven commerce is characterized by a decline in traditional organic search methods, with consumers increasingly relying on AI-powered platforms for product discovery and purchasing [8][9]. - Commerce is positioned to help businesses adapt to this new landscape by providing AI-optimized solutions that enhance visibility and performance across digital channels [12]. Product Offerings - The company offers a comprehensive solution for AI-driven commerce, with Feedonomics optimizing merchant data, BigCommerce serving as the operating system, and Makeswift powering AI-optimized storefronts [10]. - Partnerships with AI leaders like Perplexity and Google Cloud have been established to enhance the capabilities of Commerce's offerings [11]. Leadership and Future Outlook - The leadership team, under CEO Travis Hess, is focused on innovation and sustainable growth, positioning Commerce as a trusted partner in the digital commerce space [13]. - The company aims to leverage AI for personalization, automation, and data orchestration throughout the customer journey, ensuring businesses can adapt in real-time [12].

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]

Core Insights - BigCommerce has appointed Vipul Shah as the new Chief Product Officer, who brings over 20 years of experience from companies like PayPal, Google, J.P. Morgan, and Wells Fargo [1][4] - Shah will oversee product management, design, and strategy for BigCommerce's three products: BigCommerce, Feedonomics, and Makeswift [2] - The CEO of BigCommerce, Travis Hess, emphasized Shah's innovative track record and cultural fit within the company, which will be vital for unifying the product strategy across its offerings [3] Company Overview - BigCommerce is a leading open SaaS and composable ecommerce platform that supports brands, retailers, manufacturers, and distributors in building and growing their online businesses [6] - The platform is utilized by tens of thousands of B2C and B2B companies across 150 countries, providing them with professional-grade functionality and ease of use [6]