Bigmerce (US:BIGC)2022-05-03 01:21Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $66.1 million, representing a 42% year-over-year increase, marking the ninth consecutive quarter of over 30% revenue growth [9][42] - Annual revenue run rate (ARR) reached $280.4 million, up 43% year-over-year, with enterprise account ARR growing 68% year-over-year to $189 million [10][48] - Non-GAAP operating loss was $12.4 million, consistent with prior guidance, with a negative operating margin of 18.7% compared to negative 6.7% in Q1 2021 [11][58] Business Line Data and Key Metrics Changes - Subscription revenue grew 50% year-over-year, driven by net growth in merchants and a shift towards enterprise plans [42] - Partner and services revenue (PSR) increased by 23% year-over-year, although growth slowed compared to the previous quarter [42] - ARR from accounts with annual contract value (ACV) greater than $2,000 grew 52% year-over-year to $249.5 million [48] Market Data and Key Metrics Changes - Revenue in the Americas increased by 43%, while EMEA revenue also grew by 43% in Q1, and APAC revenue was up 27% [44] - The company is expanding its international presence, with plans to enter Nordic countries and South America [23][24] - The company noted that many brands in international markets are experiencing growth rates ahead of similar companies in North America [45] Company Strategy and Development Direction - The company aims to be a leading e-commerce Open SaaS provider, focusing on enterprise capabilities and international expansion [8][22] - Recent product launches include Multi-Storefront functionality, which allows merchants to manage multiple storefronts from a single control panel [16] - The company is investing in Commerce-as-a-Service, enabling partners to create customized commerce solutions powered by its technology [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain strong revenue growth despite normalization in consumer behavior post-pandemic [51][60] - The company anticipates slower growth rates in ARR compared to previous years due to normalization effects and macroeconomic uncertainties [51][65] - Management highlighted the importance of long-term investments in enterprise capabilities and international markets to drive future growth [22][62] Other Important Information - The company ended Q1 with $377.3 million in cash and equivalents, indicating strong liquidity [62] - The acquisition of BundleB2B is expected to enhance B2B capabilities and contribute to future growth [30][66] - The company plans to host its first Analyst and Investor Day as a public company on May 25, 2022 [38] Q&A Session Summary Question: Changes in consumer behavior and GMV growth trends - Management noted that trends have been consistent, with no surprises in the forecast for Q1 and Q2 [68][69] Question: Cost drivers impacting profitability - The increase in expenses is primarily tied to sales and marketing investments, with Q2 expected to be the highest expense period of the year [70][71] Question: Impact of Multi-Storefront on enterprise ARR - Early feedback on Multi-Storefront has been positive, with expectations for significant impact on new enterprise sales [74][75] Question: Commerce-as-a-Service release timeline and NRR benefits - Early releases for Commerce-as-a-Service are expected in mid-2022, with anticipated NRR benefits in the following year [78] Question: Insights on bookings and ARR growth - Q1 saw the highest gross bookings quarter, with strong retention rates for enterprise accounts [81][82] Question: Growth potential of B2B offerings - The company is positioned as a leader in B2B, with expectations for significant growth in this segment due to recent acquisitions [85][89] Question: Market forecast and competitive positioning - Management is monitoring market trends closely and remains confident in the company's competitive pricing and flexibility [100][115]