Bigmerce (US:BIGC)2023-02-24 02:10Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $72.4 million, representing a 12% year-over-year increase, while full year 2022 revenue grew to $279.1 million, up 27% year-over-year [73][101] - Non-GAAP operating loss for Q4 was $9.4 million, with a full year loss of $47 million [73] - Adjusted EBITDA was negative $8.6 million for Q4, improving from negative $12.1 million in Q4 2021 [5] - Cash and cash equivalents at the end of Q4 totaled $305 million, with operating cash flow of negative $2.7 million compared to negative $8.8 million a year ago [93] Business Line Data and Key Metrics Changes - Annual Recurring Revenue (ARR) grew to $311.7 million, up 16% year-over-year, with enterprise account ARR at $224 million, up 30% year-over-year [3][102] - Subscription revenue for Q4 increased by 14% year-over-year to $53.3 million, while partner and services revenue grew by 6% year-over-year to $19.1 million [90] - Enterprise accounts increased by 750 accounts or 15% year-over-year, totaling 5,786 accounts [151] Market Data and Key Metrics Changes - Revenue growth in the Americas and EMEA was 28% and 33% respectively, while APAC grew by 9% year-over-year [118] - EMEA revenue grew by 22% in Q4, while APAC revenue decreased by 6% compared to the prior year [150] Company Strategy and Development Direction - The company is focused on achieving global leadership in enterprise and reaching profitability on an adjusted EBITDA basis by Q4 2023 [80][104] - Strategic pillars include open SaaS, disruptive innovation, and commerce as a service, with a focus on enterprise growth and profitability [78][80] - The company aims to increase enterprise accounts to nearly 80% of total ARR by the end of 2023 or early 2024 [155] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating climate but expressed confidence in the company's ability to adapt and achieve profitability [1][74] - The company anticipates a modest deceleration in same-store platform GMV and order growth year-over-year, impacting subscription pricing upgrades and PSR growth [154] - Management remains optimistic about enterprise momentum, citing a 30% ARR growth for enterprise in 2022, significantly higher than the overall e-commerce growth [158] Other Important Information - The company has implemented cost reductions and focused on high ROI segments like enterprise and B2B [5][76] - The restructuring has improved operational efficiency and is expected to lead to better profitability [76][116] Q&A Session Summary Question: What is the outlook for the enterprise segment growth? - Management expressed confidence in achieving over 20% enterprise ARR growth in 2023, supported by strong partnerships and product capabilities [137][158] Question: How is the company addressing the competitive environment? - The company highlighted its unique positioning in the market, emphasizing its open SaaS model and superior enterprise offerings compared to competitors [139] Question: What are the drivers of EMEA growth? - Management noted that EMEA growth is driven by establishing a network of merchants and partners, with strong traction and wins in the region [140]