BigCommerce Holdings, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to BigCommerce's second quarter 2021 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Daniel Lentz, Head of Investor Relations. Thank you. Please go ahead.

Good afternoon and welcome to BigCommerce's second quarter 2021 earnings call. We will be discussing the results announced in our press release issued after today's market close. With me are BigCommerce's President, CEO, and Chairman, Brent Bellum, and CFO, Robert Alvarez. Today's call will contain forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning financial and business trends. our expected future business and financial performance and financial condition, and our guidance for the third quarter of 2021 and the full year, 2021. These statements can be identified by words such as expect, anticipate, intend, plan, believe, seek, will, or similar words. These statements reflect our views as of today only and should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements. forward-looking statements by their nature address matters that are subject to risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of the material risks and other important factors that could affect our actual results, please refer to the risks and other disclosures contained in our filings with the Securities and Exchange Commission. During the call, we will also discuss certain non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as how we define these metrics and other metrics, is included in our earnings press release, which has been furnished to the SEC and is also available on our website at investors.bigcommerce.com. With that, let me turn the call over to Brendan.

Thank you, Daniel, and thanks to everyone for joining us on our second quarter earnings call. On today's call, Robert and I will review our second quarter results, provide you with updates on our strategy, highlight some of our recent product launches and partnership announcements, and also provide additional disclosures on our recent acquisition of Feedonomics. Finally, we will conclude today's call by updating you on our third quarter and 2021 full year guidance. Let's begin with a brief recap of our Q2 financial results. Momentum across our business segments continues to gain speed. We saw strong revenue growth in the second quarter, increasing to $49 million, up 35% year-over-year, and it represents the sixth consecutive quarter of 30% or higher revenue growth. Our partners and teams across all geographies are doing a tremendous job executing on our strategy, so I want to start by thanking them for their continued commitment and all their efforts. The underlying trends in our key metrics also continue to strengthen, starting with ARR, or annual revenue run rate, which grew to $209.3 million, up 38% from a year ago. We continue to see strong momentum in our target market of established and growing businesses. Our enterprise account, ARR, was $122.7 million, which was up 54% year over year. ARR, for accounts greater than $2,000 in annual contract value, or ACV, finished at $177.2 million, up 46% year-over-year. Last week, we announced the acquisition of Feedonomics, a leading data feed optimization platform that is being used by nearly 30% of the top 1,000 Internet retailers. Their technology helps merchants get discovered across leading advertising channels and facilitate sales across both social and marketplace platforms. With U.S. e-commerce ad channel spending expected to more than double to over $40 billion by 2024, the effectiveness of merchant spend on these areas will become increasingly critical. We're seeing the importance of structured data gaining traction amongst our channel partners, merchants, and agencies. Maximizing omnichannel demand generation and sales requires a feed management solution that can ingest, enhance, and syndicate product data across multiple channels. Feedonomics builds on many of the major Omni partnerships we have announced recently, becoming the connective tissue that can make BigCommerce the world's most powerful e-commerce platform for Omni-channel selling. We believe that merchants will need to meet consumers where they are, whether it's on social channels, ad channels, or marketplaces. And together with Feedonomics, we will be the best way for merchants of all sizes to reach and acquire new customers wherever they shop and browse online. The migration away from on-premise software and outdated legacy systems towards our best-of-breed Open SaaS platform is steady, and we believe this trend will pick up speed in the coming years. Additionally, our merchants are looking for ways to streamline their omnichannel operations, juggling complex logistics and marketing efforts to grow their businesses. We aim to be a critical partner to our merchants by serving as the nucleus of their omnichannel growth efforts. We remain steadfast in our commitment to invest in our core platform and be the leading open SaaS platform in the world for merchants of all sizes. Our core strategic areas of focus remain our core open SaaS platform, omnichannel, international expansion, B2B, headless, and expanding our partner and services revenue opportunities. It's clear this acquisition fits well within our core strategic pillars. BigCommerce has demonstrated its ability to drive strong and durable revenue growth rates while generating leverage with a disciplined approach to capital allocations. As I mentioned on our IR call last week, our market continues to get bigger, and there are many opportunities for us to invest in our business, both organically or inorganically, through targeted M&A. We will continue to make smart investments that accelerate our strategic initiatives and deliver outsized value to our merchants and partners over the long term. Now I'll move on to discussing new customers that launched exciting sites on our platform. In Q2, we had several premier brands joining BigCommerce. Well-known fashion brand Peter Christian recently moved from a legacy platform to big commerce to launch two international storefronts that leverage a React custom product bundler. With this, the merchant can combine many products into a single product detail page, creating a better customer experience. Quality Marine, which offers one of the widest and highest quality selections of aquacultured and sustainably caught marine fish and invertebrates, upgraded from a custom-built solution to launch a website on BigCommerce that enables both B2B and B2C functionality. Through its work with BigCommerce and an agency partner, Quality Marine is able to showcase multiple brand sites through a single BigCommerce instance. Industry-leading manufacturer and distributor MainTex migrated to BigCommerce in order to take advantage of bundled B2B functionality, which is available exclusively on our platform. AM Touch Dell Supply also chose BigCommerce for our B2B capabilities and leveraged the recently launched B2B edition to support its complexities around cost tracking, customer groups, and pricing of products. Additionally, the brand needed a platform that could support mobile responsiveness and offered a tight integration with its ERP. RDO Equipment Production, a manufacturing brand with more than 75 stores nationwide, launched the first headless storefront on BigCommerce using SiteFinity as at CMS. The company was drawn to BigCommerce's open source mentality and flexibility and felt that its open APIs allowed them to connect all the pieces of their overall solution together. Parent company, Keraloha, launched its second site on BigCommerce, color-changing product company Delso, after successful launch of its flagship site, Keraloha.com, last quarter. BigCommerce also expanded and added many key partnerships for which we are very excited. In Omnichannel, we announced a partnership agreement with Amazon, launching a native integration with Amazon Multi-Channel Fulfillment, or MCF. This partnership will give U.S. merchants natively built on BigCommerce an easier way to fulfill their e-commerce orders using Amazon's warehousing and order fulfillment platform. Merchants can utilize the service whether they sell on Amazon or not, improving their fulfillment, logistics, and customer experience. Near the beginning of Q3, We announced a partnership with Mercado Libre that will allow BigCommerce merchants to access the largest Latin American marketplace through our channel manager. It will allow merchants to quickly start selling throughout the region, managing for them the complications of currency conversion and language translation. Our partnership with Commonwealth Bank of Australia will provide the bank's business customers the ability to grow their online businesses leveraging BigCommerce's platform and CBA's comprehensive financial services. Leading European payment processor, Checkout.com, expanded its BigCommerce offerings by adding many of the most popular alternative payment methods in Europe, Latin America, and Asia. We agreed to work with OpenNote, our first move into crypto payments. Merchants already on BigCommerce will have the ability to accept Bitcoin payments on-chain and on the Lightning network, as well as the ability to exchange their Bitcoin to their local currency at any time. BigCommerce is partnering with Avisam, to bring dropship products for sellers to launch and scale their e-commerce offerings. Additionally, we signed with Capla, a leading Italian SaaS shipping solution provider that allows merchants to choose their local carrier in Italy and Europe. And finally, we launched an integration with Facebook's conversion API. This enables merchants to send web events directly via APIs, improving the insights that power their Facebook and Instagram advertising campaigns. On the product side, We launched a range of high-value features throughout Q2. We enhanced our offering in continental Europe by launching fully localized stores for merchants in France, Italy, and the Netherlands. For merchants in those countries, the sign-up and store launch experience are now fully localized in terms of languages, currencies, themes, and payments. we launched our new B2B edition, which is already seeing strong traction. The B2B edition packages many of the capabilities most popular among B2B sellers, including corporate account management, invoicing, sales rep quoting and masquerading, managed logins, and shared shopping lists. The service facilitates channel expansion, a combination of B2C and B2B selling on a single platform, and the extension of B2C-like experiences for B2B buyers. Finally, with our data analytics suite, we launched Big Open Data Solutions, a tool that gives merchants extreme flexibility and control in the management of their data. In conjunction with Google BigQuery Data Warehouse, BigCommerce merchants can centralize all data into a single location for analytical insights. The solution works across business intelligence and data platforms. We believe our merchants' data is their data, and we will continue to implement ways for them to leverage that data to manage and grow their businesses better on BigCommerce than on any other platform. Looking to the balance of 2021, we're excited about our prospects for continued merchant acquisition, product enhancements, partnership introductions, and geographic expansion. We believe our open staff strategy is differentiated and valued by businesses globally, and we will continue to make bold bets on the strategic priorities that we've consistently articulated. I will now turn the call over to Robert to talk about our financial results.