38 slides from Commerce.com, Inc. - Series 1's earnings presentation, Aug 1, 2024
Slide 1: 2Q 2024 Financial Results
1 © BigCommerce. All rights reserved. Confidential. 2Q 2024 Financial Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by BigCommerce Holdings, Inc. (“we,ˮ “us,ˮ “our,ˮ “BigCommerceˮ or the “Companyˮ). 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 for
Slide 3: Who is BigCommerce?
3 © BigCommerce. All rights reserved. Confidential. Who is BigCommerce?
Slide 4: BigCommerce is the Open SaaS platform for all stages of ecommerce growth
BigCommerce is the Open SaaS platform for all stages of ecommerce growth BigCommerce is the premier open SaaS © BigCommerce. All rights reserved. Confidential. and composable platform for ecommerce We enable merchants to run best-of-breed technology solutions without friction Weʼre growing enterpris
Slide 5: BigCommerce at 6/30/24
All statistics as of 6/30/2024 unless otherwise noted BigCommerce at 6/30/24 $254M Enterprise ARR 73% of total $346M ARR $346M ARR +4% 2Q24 | +12% 2Q23 Target Customer Segments +41% 2Q22 $42,576 enterprise account ARPA +7% 2Q24 | +5% 2Q23 Stabilizing revenue growth Enterprise +8% 2Q24 | +11% 2Q23 Mi
Slide 6: BigCommerce Enterprise accounts
BigCommerce Enterprise accounts: Enterprise accounts (a) may require complex product feature sets (b) look for custom-negotiated, multi-year contracts “Enterprise accountsˮ have at least (c) want technical and professional one contracted enterprise plan. © BigCommerce. All rights reserved. Confident
Slide 7: Enterprise accounts @ IPO vs today
BigCommerce enterprise accounts @ IPO vs today Enterprise account ARR BigCommerceʼs enterprise business has Retail account ARR grown rapidly in the brief time since IPO, driven by our key business strategy: disrupting legacy enterprise ecommerce. © BigCommerce. All rights reserved. Confidential. 7 N
Slide 8: Investing to win in the mid market and enterprise segments
Investing to win in the mid market and enterprise segments to drive Enterprise ARR growth Enterprise ARR $mil © BigCommerce. All rights reserved. Confidential. I P O 8 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
9 © BigCommerce. All rights reserved. Confidential. The market BigCommerce serves
Slide 10: Global ecommerce momentum continues to accelerate
Global ecommerce momentum continues to accelerate and gain long-term share over brick and mortar Adoption of ecommerce is accelerating Many enterprises use ‘monolithicʼ legacy ecommerce platforms that need to be replaced for more modern and flexible architecture © BigCommerce. All rights reserved. C
Slide 11: Addressable market: platform spend
Addressable market: platform spend BigCommerce serves B2C and B2B merchants all on one platform Ecommerce platform spend forecasted to grow to $16.5B in 2027 Enterprises are choosing Cloud/SaaS over on-premise software BigCommerce uniquely combines the flexibility of open-source with API-first compo
Slide 12: The BigCommerce go to market strategy
© BigCommerce. All rights reserved. Confidential. 12 The BigCommerce go to market strategy
Slide 13: Go to market strategy
Go to market strategy BigCommerce strategic focus INITIATIVES G Yreserved. Confidential.S T R A T E G I C Enterprise International Omnichannel B2B Composable S T R A TAllErights PILLARS Commerce- Open SaaS Disruptive Tech © BigCommerce. as-a-Service 13
Slide 14: Go to market strategy: Omnichannel
Go to market strategy: 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. Drive channel performance through accurate and optimized Better Improved customer data and experien
Slide 15: Go to market strategy: B2B
Go to market strategy: B2B B2B buyers across industries expect a modern experience Similar to what they see in consumer-focused ecommerce Publishing, Printing, IT & Electronics Industrial & Ag Supply Food, Beverage & CBD © BigCommerce. All rights reserved. Confidential. Healthcare, Medical & Safety
Slide 16: Go to market strategy: Composable
Go to market strategy: Composable Composable commerce for enterprise ecommerce brands 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 © BigCommerce. Al
Slide 17: Go to market strategy: Composable customer snapshot
Go to market strategy: Composable Customer snapshot by integration © BigCommerce. All rights reserved. Confidential. 17
Slide 18: Go to market strategy: Commerce-as-a-Service
Go to market strategy: Commerce-as-a-Service Enable commerce anywhere, powered Tailor by BigCommerce ecommerce to the specific needs of a category or use case BigCommerce enables partners to create and sell customized commerce solutions powered by Cross-sell Extend ecommerce fully integrated with a
Slide 19: Strong enterprise customers across multiple verticals
Strong enterprise customers across multiple verticals Health & Beauty Apparel Electronics Home & Garden © BigCommerce. All rights reserved. Confidential. Food & Beverage Sports & Outdoors Automotive B2B & Industrial 19
Slide 20: An incredible ecosystem of best-of-breed partner solutions
An incredible ecosystem of best-of-breed partner solutions Omnichannel CMS OMS AI PIM Checkout, Fraud, Lending ERP/CRM Search and Merch Payments MarTech Shipping and Fulfillment © BigCommerce. All rights reserved. Confidential. Point of Sale Tax Hosting/Insights/Analytics 20 90+ PREFERRED & ELITE PA
Slide 21: Financials
© BigCommerce. All rights reserved. Confidential. 21 Financials
Slide 22: Continued focus on high value enterprise accounts
Continued focus on high value enterprise accounts as mix continues to shift further towards larger B2C and B2B merchants © BigCommerce. All rights reserved. Confidential. 22 Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition
Slide 23: Subscription revenue growth through shift to enterprise accounts
Subscription revenue growth through shift to enterprise accounts © BigCommerce. All rights reserved. Confidential. 23 Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: Amounts may not add due to rounding.
Slide 24: Healthy gross margin profile and profitable growth
Healthy gross margin profile and profitable growth © BigCommerce. All rights reserved. Confidential. Note: Non-GAAP gross profit and gross margin exclude the effect of stock-based compensation and 24 related payroll tax expense. See appendix for reconciliation of Non-GAAP measures to GAAP.
Slide 25: Committed to improving operating leverage and grow profitability
Committed to improving operating leverage and grow profitability © BigCommerce. All rights reserved. Confidential. Note: Non-GAAP gross profit and gross margin exclude the effect of stock-based compensation and 25 related payroll tax expense. See appendix for reconciliation of Non-GAAP measures to G
Slide 26: Key Metrics
Key Metrics 01 04 Annual revenue run-rate Enterprise accounts as a percent of annual revenue run-rate 02 05 © BigCommerce. All rights reserved. Confidential. Subscription annual revenue run-rate Average revenue per account for enterprise accounts 03 06 Annual revenue run-rate Number of enterprise ac
Slide 27: ARR growth expected to improve behind increased focus on enterprise
ARR growth expected to improve behind increased focus and investments in high value, high retention enterprise accounts… © BigCommerce. All rights reserved. Confidential. Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: Annual revenue run-rate (“ARRˮ) is calculated as
Slide 28: Consistent growth in Subscription ARR
…with consistent growth in Subscription ARR… © BigCommerce. All rights reserved. Confidential. Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: “Subscription annual revenue run-rateˮ is calculated by subtracting the trailing twelve months of partner and services reven
Slide 29: Enterprise accounts outpacing non-enterprise accounts
…and enterprise accounts outpacing non-enterprise accounts © BigCommerce. All rights reserved. Confidential. 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 29
Slide 30: 73% of ARR from enterprise accounts today
73% of ARR from enterprise accounts today, driven by durable growth in mid market and enterprise segments © BigCommerce. All rights reserved. Confidential. Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: Enterprise accounts represent any account with at least one Big
Slide 31: Mid market strength driving steady growth in ARPA
Mid market strength and up market progress into enterprise segment driving steady growth in ARPA over time © BigCommerce. All rights reserved. Confidential. Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: Average revenue per account (“ARPAˮ) for enterprise accounts i
Slide 32: Mid market strength driving steady growth in ARPA
Mid market strength and up market progress into enterprise segment driving steady growth in ARPA over time © BigCommerce. All rights reserved. Confidential. Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition Note: Enterprise accounts represent any account with at least one Bi
Slide 33: Investment Highlights
Investment Consistent revenue growth Highlights Revenue mix shift to mid-market and enterprise customers driving durable, consistent revenue growth and strong unit economics Large and growing addressable market Strong gross margins Strong, long-term secular tailwinds tied to digital High margin reve
Slide 34: Appendix
© BigCommerce. All rights reserved. Confidential. 34 Appendix
Slide 35: GAAP income statement
GAAP income statement Figures in thousands Three Months Ended June 30 Six Months Ended June 30 Unaudited) Unaudited) 2024 2023 2024 2023 Revenue $81,829 $75,443 $162,189 $147,200 1 Cost of Revenue 19,811 18,756 38,250 36,202 Gross Profit 62,018 56,687 123,939 110,998 Operating Expenses Sales & M
Slide 36: Non-GAAP reconciliation
Non-GAAP reconciliation Figures in thousands Gross Profit Q1ʼ22 Q2ʼ22 Q3ʼ22 Q4ʼ22 FY 2022 Q1ʼ23 Q2ʼ23 Q3ʼ23 Q4ʼ23 FY 2023 Q1ʼ24 Q2ʼ24 GAAP Gross Profit $48,947 $51,343 $54,866 $53,939 $209,095 $54,311 $56,687 $58,991 $65,203 $235,192 $61,921 $62,018 Stock-based Compensation1 868 987 1,091 1,280 4,
Slide 37: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Figures in thousands Three Months Ended June 30 Six Months Ended June 30 Unaudited) Unaudited) 2024 2023 2024 2023 Net Loss $11,255 $19,065 $17,647 $41,185 Stock-based Compensation1 10,021 11,372 18,612 22,010 Acquisition Related Costs 334 4,125 667 8,250 D
Slide 38: Non-GAAP net income (loss) reconciliation
Non-GAAP net income (loss) reconciliation Figures in thousands Three Months Ended June 30 Six Months Ended June 30 Unaudited) Unaudited) 2024 2023 2024 2023 Net Loss $11,255 $19,065 $17,647 $41,185 Stock-based Compensation1 10,021 11,372 18,612 22,010 Acquisition Related Costs 334 4,125