40 slides from Commerce.com, Inc. - Series 1's earnings presentation, May 4, 2023
Slide 1: 1Q 2023 Financial Results
1Q 2023 Financial Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by BigCommerce Holdings, Inc. (“we,” “us,” “our,” “BigCommerce” or the “Company”). This presentation may contain forward-looking statements which constitute the views of the Company with respect to future events which can be identified by the use of forw
Slide 3: Who is BigCommerce
Who is BigCommerce
Slide 4: BigCommerce is the Open SaaS platform for all stages of ecommerce growth
Company overview BigCommerce is the Open SaaS platform for all stages of ecommerce growth ‣ BigCommerce is the premier open SaaS and composable platform for ecommerce ‣ We enable merchants to run best-of-breed technology solutions without friction ‣ We’re growing enterprise rapidly ‣ We’re the leade
Slide 5: BigCommerce at 3/31/23
Company overview BigCommerce at 3/31/23 $317M ARR $229M Enterprise ARR +13% 1Q23 | +43% 1Q22 72% of total $317M ARR +43% 1Q21 Enterprise Mid-market target: $1M–$50M GMV Consistent Large enterprise target: $50M+ $39,260 enterprise revenue growth 72% of account ARR account ARPA +9% 1Q23 | +42% 1Q22 +1
Slide 6: BigCommerce Enterprise accounts
BigCommerce Enterprise accounts “Enterprise accounts” have at least one contracted enterprise plan. These accounts include mid market customers with $1M-50M per year in GMV to enterprise customers with greater than $50M per year in GMV Enterprise accounts: (a) may require complex product feature set
Slide 7: BigCommerce enterprise accounts @ IPO vs today
BigCommerce enterprise accounts @ IPO vs today BigCommerce’s enterprise business has grown rapidly in the brief time since IPO, driven by our key business strategy: disrupting legacy enterprise ecommerce. Note: statistics as of 3/31/23
Slide 8: Investing to win in the mid market and enterprise segments to drive Enterprise ARR growth
FINANCIALS Investing to win in the mid market and enterprise segments to drive Enterprise ARR growth Note: growth rates represent organic + inorganic growth *Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition
Slide 9: The market BigCommerce serves
The market BigCommerce serves
Slide 10: Global ecommerce momentum continues to accelerate and gain long-term share over brick and mortar
FINANCIALS Global ecommerce momentum continues to accelerate and gain long-term share over brick and mortar Adoption of ecommerce is accelerating ● Many enterprises use ‘monolithic’ legacy ecommerce platforms that need to be replaced for more modern and flexible architecture ● Headless and composable
Slide 11: BigCommerce serves B2C and B2B merchants all on one platform
Addressable market: platform spend BigCommerce serves B2C and B2B merchants all on one platform Ecommerce platform spend forecasted to grow to $13.5B in 2026 ◿ Enterprises are choosing Cloud/SaaS over on-premise software ◿ BigCommerce uniquely combines the flexibility of open-source with API-first com
Slide 12: Addressable market expanding beyond platform spending
Addressable market: platform spend + digital marketing + major PSR components Addressable market expanding beyond platform spending Note: 1 Gross margins represent BIGC estimates based on net revenue recognition on PSR Sources and assumptions: (1) Tech platform spending based on IDC Worldwide Digita
Slide 13: The BigCommerce go to market strategy
The BigCommerce go to market strategy
Slide 14: BigCommerce Strategic Focus
Growth strategy BigCommerce Strategic Focus INITIATIVES STRATEGIC Enterprise International Omnichannel B2B Composable STRATEGY PILLARS Open Disruptive Commerce- SaaS Tech as-a-Service 14
Slide 15: Merchants want to be able to sell more everywhere.
OMNICHANNEL Merchants want to be able to sell more everywhere. ◿ Accelerate growth by easily listing products across social channels, marketplaces, search engines and new regions. Better Improved ◿ Drive channel performance through accurate customer data and experience listings and optimized listing
Slide 16: B2B buyers across industries expect a modern experience
B2B buyers across industries expect a modern experience similar to what Enterprise customer snapshot they see in consumer-focused ecommerce Publishing, Printing, IT & Electronics Industrial & Ag Supply Food, Beverage & CBD Healthcare, Medical & Safety Supply Apparel, Sports & Outdoors Manufacturing
Slide 17: Composable
Strategic Initiative Composable for enterprise ecommerce seeking the most modern approach to technology For enterprise customers, now more than ever, flexibility and composability are especially important: ◿ freedom to mix, match and combine best of breed tech solutions to create a more customized an
Slide 18: Customer snapshot by integration
C O M P O S A B L E (H E A D L E S S) Customer snapshot by integration
Slide 19: Enable commerce anywhere, powered by BigCommerce
Commerce-as-a-Service Enable commerce Tailor ecommerce to the specific needs of a category or use case anywhere, powered by BigCommerce ◿ BigCommerce enables partners Cross-sell Extend to create and sell customized ecommerce fully integrated commerce to mobile apps, commerce solutions powered with a
Slide 20: Strong enterprise customers across multiple verticals
Strong enterprise customers across multiple verticals Health & Beauty Apparel Electronics Home & Garden Food & Beverage Sports & Outdoors Automotive B2B & Industrial
Slide 21: An incredible ecosystem of best of breed partner solutions
An incredible ecosystem of best of breed partner solutions BackOffice, PIM, B2B, Hosting CMS Shipping Omnichannel Marketing Automation BACKOFFICE SHIPPING & FULFILLMENT MARKETPLACES & AD PLATFORMS EMAIL & MARKETING AUTOMATION B2B LOYALTY, REVIEWS & UGC DROPSHIPPING MULTICHANNEL LISTINGS / FEEDS CMS/HO
Slide 22: Financials
Financials
Slide 23: Continued focus on high value enterprise accounts as mix shifts
Continued focus on high value enterprise accounts as mix continues to shift further towards larger B2C and B2B merchants *Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition 23
Slide 24: Resilient subscription revenue growth through strategic shift to enterprise accounts
Resilient subscription revenue growth through strategic shift to enterprise accounts, despite slower trends in consumer spending Note: Amounts may not add due to rounding. *Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition
Slide 25: Healthy gross margin profile leading path towards profitable growth
Healthy gross margin profile leading path towards profitable growth Note: Non-GAAP gross profit and gross margin exclude the effect of stock-based compensation and related payroll tax expense. See appendix for reconciliation of Non-GAAP measures to GAAP. 25
Slide 26: Driving leverage to deliver profitable growth. Targeting positive adjusted EBITDA in Q4'23
Driving leverage to deliver profitable growth. Targeting positive adjusted EBITDA in Q4’23 Note: In Q1 2023, we reclassified certain costs that we had previously included in general and administrative expense into sales and marketing expense. To maintain consistency between comparable periods, the equ
Slide 27: Consistent merchant cohort growth, driven by GMV and enterprise net revenue retention
Consistent merchant cohort growth, driven by increases in GMV and enterprise net revenue retention ◿ As merchants transact and grow in GMV, net revenue retention improves for SMB, mid-market, and enterprise base ◿ Strong LTV to CAC ratio of 3.8:1 for 2022 ◿ NRR for enterprise accounts was 111% in 20
Slide 28: Key Metrics
Key Metrics 1 Annual revenue run-rate 2 Subscription annual revenue run-rate 3 Annual revenue run-rate for enterprise accounts 4 Enterprise accounts as a percent of annual revenue run-rate 5 Average revenue per account for enterprise accounts 6 Number of enterprise accounts 28
Slide 29: ARR growth expected to improve behind increased focus on enterprise accounts
ARR growth expected to improve behind increased focus and investments in high value, high retention enterprise accounts… *Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: Annual revenue run-rate (“ARR”) is calculated as the sum of: (1) contractual monthly recurring rev
Slide 30: Subscription ARR growth pacing ahead of non-subscription ARR
…with Subscription ARR growth pacing ahead of non-subscription ARR… *Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: “Subscription annual revenue run-rate” is calculated by subtracting the trailing twelve months of partner and services revenue from Total annual revenu
Slide 31: Enterprise accounts outpacing non-enterprise accounts and partner and services revenue
…and enterprise accounts outpacing non-enterprise accounts and partner and services revenue *Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: Enterprise accounts represent any account with at least one BigCommerce enterprise plan 31
Slide 32: 72% of ARR from enterprise accounts today
72% of ARR from enterprise accounts today, driven by durable growth in mid market and enterprise segments Note: Enterprise accounts represent any account with at least one BigCommerce enterprise plan 32
Slide 33: Mid market strength and up market progress driving steady growth in ARPA
Mid market strength and up market progress into enterprise segment driving steady growth in ARPA over time Note: Average revenue per account (“ARPA”) for enterprise accounts is calculated at the end of a period by including customer-billed revenue and an allocation of partner and services revenue, w
Slide 34: Mid market and enterprise focus yielding account growth
Mid market and enterprise focus yielding account growth and opportunities with larger, more complex customers *Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: Enterprise accounts represent any account with at least one BigCommerce enterprise plan. Year-over-year growt
Slide 35: Investment highlights
Large and growing addressable market Investment Strong, long-term secular tailwinds tied to digital commerce with TAM expanding beyond ecommerce platform spending in the US and abroad Open SaaS highlights Disruptive platform and partner approach that prioritizes enterprise functionality, best of bre
Slide 36: Appendix
Appendix
Slide 37: GAAP income statement
GAAP income statement Figures in thousands Year Ended December 31, Three Months Ended March 31, 2021 2022 2022 2023 Revenue $219,855 $279,075 $66,050 $71,757 Cost of Revenue (1) 48,479 69,980 17,103 17,446 Gross Profit 171,376 209,095 48,947 54,311 Operating Expenses Sales & Marketing(1) 104,845 141,
Slide 38: Non-GAAP reconciliation
Non-GAAP reconciliation Figures in thousands Gross Profit Q1’21 Q2’21 Q3’21 Q4’21 2021 Q1’22 Q2’22 Q3’22 Q4’22 2022 Q1’23 GAAP Gross Profit $37,410 $38,828 $46,882 $48,256 $171,376 $48,947 $51,343 $54,866 $53,939 $209,095 $54,311 Stock-based Compensation(1) 415 545 310 852 2,122 868 987 1,091 1,280 4,
Slide 39: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Figures in thousands Year Ended December 31, Three Months Ended March 31, 2021 2022 2022 2023 Net Loss ($76,677) ($139,919) ($37,037) ($22,120) Stock-based Compensation Expense 25,424 42,332 8,962 10,487 Payroll Tax Associated with Stock-based Compensation Expense 1,11
Slide 40: Non-GAAP net loss reconciliation
Non-GAAP net loss reconciliation Figures in thousands Year Ended December 31, Three Months Ended March 31, 2021 2022 2022 2023 Net Loss ($76,677) ($139,919) ($37,037) ($22,120) Stock-based Compensation Expense 25,424 42,332 8,962 10,487 Payroll Tax Associated with Stock-based Compensation Expense 1,