38 slides from Commerce.com, Inc. - Series 1's earnings presentation, May 9, 2024
Slide 1: 1Q 2024 Financial Results
1Q 2024 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 3/31/24
Company overview BigCommerce at 3/31/24 $340M ARR $248M Enterprise ARR +7% 1Q24 | +13% 1Q23 73% of total $340M ARR +43% 1Q22 Enterprise Mid-market target: $1M–$50M GMV Stabilizing revenue Large enterprise target: $50M+ $41,581 enterprise growth 73% of account ARR account ARPA +12% 1Q24 | +9% 1Q23 +6
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: All statistics as of 3/31/2024 unless otherwise noted
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 $16.5B in 2027 ◿ Enterprises are choosing Cloud/SaaS over on-premise software ◿ BigCommerce uniquely combines the flexibility of open-source with API-first com
Slide 12: The BigCommerce go to market strategy
The BigCommerce go to market strategy
Slide 13: 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 13
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 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 Point of Sale Tax Hosting/Insights/Analytics 90+ PREFERRED & ELITE PARTNERS 1,000+ A P P S 50+ INDUSTRY CATEGORIES 20
Slide 21: Financials
Financials
Slide 22: Continued focus on high value enterprise accounts as mix shifts to larger merchants
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 22
Slide 23: Resilient subscription revenue growth through strategic shift to enterprise accounts
Resilient subscription revenue growth through strategic shift to enterprise accounts Note: Amounts may not add due to rounding. *Note: Q3 2022 marks the 1 year anniversary of the Feedonomics acquisition
Slide 24: Healthy gross margin profile and profitable growth
Healthy gross margin profile and 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. 24
Slide 25: Committed to improving operating leverage and grow profitability
Committed to improving operating leverage and grow profitability 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 equivalent change has been ap
Slide 26: 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 26
Slide 27: ARR growth expected to improve behind increased focus and investments in 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 28: ...with consistent growth in Subscription ARR...
…with consistent growth in 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 revenue run-rate 28
Slide 29: ...and enterprise accounts outpacing non-enterprise accounts
…and enterprise accounts outpacing non-enterprise accounts *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, driven by durable growth in mid market
73% 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 30
Slide 31: 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 32: Mid market and enterprise focus yielding account growth and larger customers
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 33: 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 34: Appendix
Appendix
Slide 35: GAAP income statement
GAAP income statement Figures in thousands Three Months Ended March 31 Twelve Months Ended December 31 (Unaudited) (Unaudited) 2024 2023 2023 2022 Revenue $80,360 $71,757 $309,394 $279,075 Cost of Revenue (1) 18,439 17,446 74,202 68,980 Gross Profit 61,921 54,311 235,192 209,095 Operating Expenses Sa
Slide 36: Non-GAAP reconciliation
Non-GAAP reconciliation Figures in thousands Gross Profit Q1’22 Q2’22 Q3’22 Q4’22 FY 2022 Q1’23 Q2’23 Q3’23 Q4’23 FY 2023 Q1’24 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 Stock-based Compensation(1) 868 987 1,091 1,280 4,226 1,189 1,290
Slide 37: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Three Months Ended March 31 Twelve Months Ended December 31 Figures in thousands (Unaudited) (Unaudited) 2024 2023 2023 2022 Net Loss ($6,392) ($22,120) ($64,671) ($139,919) Stock-based Compensation(1) 8,591 10,638 41,686 42,986 Acquisition Related Costs 333 4,125 10,2
Slide 38: Non-GAAP net income (loss) reconciliation
Non-GAAP net income (loss) reconciliation Three Months Ended March 31 Twelve Months Ended December 31 Figures in thousands (Unaudited) (Unaudited) 2024 2023 2023 2022 Net Loss ($6,392) ($22,120) ($64,671) ($139,919) Stock-based Compensation(1) 8,591 10,638 41,686 42,986 Acquisition Related Costs 333