Commerce.com, Inc.

Ladies and gentlemen, thank you for standing by and welcome to BigCommerce third quarter 2020 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, Rohit Giri, Head of Investor Relations. Thank you. Please go ahead, sir.

are made pursuant to the safe harbor provisions of the Private Security 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 fourth quarter of 2020 and the full year 2020. 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 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 Brent.

Thanks, Rohit. Welcome, everyone, and thanks for joining us today. I hope everyone is in good health and keeping safe. Let's jump right into our third quarter performance. Our results reflect strong execution, continued product innovation, and the impact of our best of breed partner ecosystem. We had an exceptional third quarter with Q3 revenue coming in at $39.7 million, up 41% year over year. Total annual revenue run rate, or ARR, was $167 million, which was up 38% year over year. Q3 revenue and ARR achieved our highest growth rates in years, and we've accelerated our year-over-year revenue growth rate for four consecutive quarters. We remain strategically focused on serving the needs of merchants of all sizes, and this past quarter further illustrates our ability to continue to disrupt the mid-market and large enterprise segments of the market. Our continued progress in moving up market was reflected in our enterprise account ARR growth rate, which was up 48% year-over-year in Q3. We delivered these results through a disciplined investment framework that is both intentional and purposeful. I'm proud of the improving efficiency in our financial model that we delivered in Q3, which represents a 15-point year-over-year improvement in our adjusted EBITDA margin. Our Open SaaS platform continues to succeed in the market because of three primary factors. First, our platform's enterprise functionality, second, our platform's openness and flexibility, and third, our lower total cost of ownership. We have benefited from overall e-commerce trends, and equally important to our progress has been the strategic decisions and investments we made as a company before the COVID-19 crisis started. Our continued momentum is reflected in both our financial results and third-party industry recognition. For example, IDC Marketscape recently named BigCommerce a leader in B2C digital commerce and a major player in B2B digital commerce. IDC cited our strengths in digital commerce, including the level of value delivered relative to the price paid for the application, our app marketplace for add-ons to the core commerce offering in areas such as PIM, order management, shipping, and marketing content management, and finally, our merchant-centric implementation experience. BigCommerce was also recently named a challenger in the 2020 Gartner Magic Quadrant for digital commerce platforms. We were positioned furthest to the right on the completeness of vision access in the challenger's quadrant, which we consider recognition of our open SaaS approach and our position as a disruptor of legacy platforms. Lastly, BigCommerce earned seven medals in the Paradigm B2B Combine mid-market report, and we are the only vendor that earned gold in both partner ecosystem and total cost of ownership. customers spoke highly of BigCommerce's extensive partner ecosystem and a rich open application marketplace. This further validates our open SaaS API and partner-first approach to digital commerce. I'd like to turn now and highlight some exciting new stores that launched in Q3. Chapstick, a subsidiary of GlaxoSmithKline, has been a leader in lip care and innovation since the 1880s. In line with the broader trend of reputable traditional brands going direct-to-consumer, Chapstick made its e-commerce debut on BigCommerce because their governing IT team performed a thorough tech evaluation and felt BigCommerce was a secure and trustworthy platform. Five Hour Energy wanted a platform that offered full control over their URL structure and found BigCommerce to be their best SaaS option that enabled that. The well-known camera manufacturer Nikon launched their Canada store on BigCommerce because of the ease of doing business with our team and also because of the company's ability to work within an existing complex architecture, as well as our strong PIPEDA, which is Canada's Personal Information Protection and Electronic Documents Act, and GDPR compliance frameworks. After the Baseball Hall of Fame recently launched on BigCommerce, we now also serve Little League International. The program chose BigCommerce because it needed a platform that had robust and best-of-breed point-of-sale options. For all of you soccer or football fans, this next one will be particularly exciting. Chivas is a leading football club in Liga Mexico, the top professional football division of the Mexican Football League system. Not only does it represent one of our first enterprise customers in Mexico, The club chose BigCommerce both for our flexible open SaaS approach, which allows them to grow with the platform, and also because of the personal relationship and deep partnership our team established with their in-house e-commerce team every step of the way. Now I'd like to discuss some of the new and exciting product enhancements we have recently launched. We recently announced the availability of Channel Manager, a modernized platform feature that makes it easier for merchants to manage their comprehensive omnichannel sales presence. We recently launched our partnership with Wish, one of the largest and fastest growing global e-commerce marketplaces, and the latest to join the BigCommerce partner ecosystem. Wish helps expand BigCommerce merchants' visibility to 100 million monthly active users across more than 100 countries. In addition, BigCommerce merchants selling on Wish can now leverage Deliver's fast and affordable fulfillment to get the exclusive Wish two-day delivery tag on their listings. On our last earnings call, we outlined the multiple growth levers we are pursuing. Let me give you an update on each of the growth drivers. When our merchants' businesses thrive and grow on our platform, we grow too. The pricing of our essentials and enterprise plans are designed to adjust as our customer sales on our platform increase above volume thresholds. In Q3, we saw strong growth in our enterprise business, with our enterprise account ARR growing 48% versus last year, as I previously mentioned. For accounts with greater than $2,000 ACV, we saw average revenue per account grow 7% sequentially versus Q2 and 31% versus Q3 2019. We also grow by acquiring new B2C and B2B merchants. Q3 was one of our strongest quarters for new bookings. We experienced continued momentum not only in new enterprise plan bookings, but also in organic growth within our existing merchant base. Our growth is also fueled by expanding our product and go-to-market capabilities in geographies around the world. Revenue from our international business grew 53% year-over-year in Q3, with 67% year-over-year revenue growth in EMEA, and 42% year-over-year revenue growth in APAC. We remain committed to our efforts to expand internationally, and we see a massive opportunity to bring our open SaaS model to new markets as we build our 2021 plans. Finally, in Q3, we saw a significant increase in the expansion of our technology ecosystem. To further bolster channel managers' impact on merchants' ability to manage their comprehensive omnichannel sales efforts, we signed new partnerships with SudCommerce, Wish, SureDone, Feedonomics, and Deliver to uplevel our merchants' ability to sell cross-channel. Successful cross-channel sales include advertising on marketplaces, and to support that, we welcomed ads partners Tenuity and Take a Metrics. We've invested resources in expanding our offerings in what we call site tools, which are features that add foundational value to merchant stores. Accessibility features help open up e-commerce to all shoppers in charitable donations. Our new partnership with Essential Accessibility, a leading SaaS-based accessibility service, highlights our continued efforts to enable all shoppers to shop with ease. We're excited to expand our PayPal relationship with integration to their point of sale solution, iZettle, which launched in EMEA this month. We forged a partnership with the number one payment gateway in the Netherlands and continue to enhance our headless suite of offerings with Frontastic and Ampliance. In support of our Open SaaS model, BigCommerce hosted Make It Big, our annual marquee three-day digital event last month. This year marked our third annual event featuring leading e-commerce experts, influencers, and big commerce partners, and was co-sponsored by Digital Marketer. Over 8,000 registrants had free access to 21 sessions delivered over three days featuring proven strategies, expert tips and tactics, and real-world success stories. Make It Big 2020 has expanded to reach merchants and customers globally with content intended to help merchants of all stages of growth. Wrapping up, I just want to reiterate how grateful I am for the BigCommerce team across all of our offices. I would like to end with my sincere thanks to all of our BigCommerce employees and partners for their resiliency and dedication to serve and support our merchants during these challenging times. Now, I would like to turn it over to Robert for a deeper discussion of our financial results.