Commerce.com, Inc.

Ladies and gentlemen, thank you for standing by and welcome to BigCommerce's third quarter 2021 earnings call. At this time, all participants are in 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 today, Daniel Lentz, Head of Investor Relations. Thank you. Please go ahead.

Good afternoon and welcome to BigCommerce's third 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 fourth quarter of 2021 and the full year of 2021. These statements can be identified by words such as expect, anticipate, intend, planned, 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 Brent.

Thank you, Daniel, and thanks to everyone for joining us on our third quarter earnings call. On today's call, Robert and I will review our third quarter results. We've had an exciting and eventful quarter, and I'm pleased to share updates on a number of key initiatives and milestones for our company. I will provide several updates today, including product development progress, strategic partnership wins, an update on our recent acquisition of Feedonomics, and finally, our recent capital raise. To conclude today's call, we will give an update on our fourth quarter and 2021 full-year guidance. Let's begin with a brief recap of our Q3 financial results. We experienced another quarter of accelerating growth across our business. Revenue increased to $59 million, up 49% year-over-year, including $5.9 million from Feedonomics. That represents the seventh straight quarter of 30% or higher revenue growth. These results reflect the success of our OpenSAP strategy and progress across a number of company priorities, including enterprise sales growth, international expansion, B2B, headless use cases, and omnichannel advertising and selling enablement. We finished Q3 with ARR, or annual revenue run rate, at $253.5 million, up 52% from last year. Our enterprise account ARR finished at $159.9 million, up 78% year over year. And finally, ARR for accounts greater than $2,000 in annual contract value, or ACV, finished at $222.3 million, up 65% year-over-year. Our strategy remains focused on providing the world's most flexible Open SaaS platform to power the growth of businesses of all sizes. Omni-channel selling and demand generation is central to this. Our acquisition of Feedonomics provides industry-leading feed integration and optimization capabilities to 100-plus leading channels around the world. These channels include search engines like Google, marketplaces like Amazon, Walmart, Wish, and MercadoLibre, and social networks such as TikTok, Facebook, and Instagram. We empower each merchant to build their e-commerce in their own way, including accessing the best sales and marketing channels for the unique needs of their businesses and shoppers. To help investors better understand the size, growth profile, and merchant count of Feedonomics, we will provide visibility into the impact that Feedonomics has upon several of our key business metrics for this and our Q4 operating results. Feedonomics ARR finished the quarter at $32.9 million, up 61% over the same period last year, while customer accounts with greater than $2,000 in ACV grew 22% to 1,057 during the quarter. Customers include many household names such as Dell, Puma, Allbirds, and Samsung. We are already seeing encouraging results in our cross-sell efforts with existing big commerce merchants, and our omni-channel partners view our acquisition as enhancing Feedonomics leading position in global feed management. Note that we remain committed to the open part of our open SaaS strategy. With respect to feedonomics, this means we'll invest to enhance their leading omnichannel feed capabilities while supporting their ability to serve merchants using any platform, including ones that compete with BigCommerce. Similarly, BigCommerce will continue to fully support our many pre-existing omnichannel partners, including those who provide alternatives to feedonomics. This open approach maximizes partner and customer success within our ecosystem. Yesterday, we announced an exciting integration and partnership with TikTok that gives matching advertising credits to qualifying merchants, encouraging them to test and explore TikTok for Business. With an estimated 1 billion monthly active users, TikTok is a uniquely positioned ad channel for customer acquisition and engagement. Merchants can directly access the TikTok for Business app via the BigCommerce Channel Manager, creating a one-click experience to place the TikTok pixel, upload products, and ultimately begin producing ad campaigns. In October, we announced our new ads and listings on Google Native App, which enables merchants to connect their stores to the Google Merchant Center and add products for free. They can also take advantage of Google Ads campaigns to reach more customers and uncover performance insights and trends, driving brand awareness and GMV growth. This is yet another example highlighting our growing partnership with Google. During the quarter, we also announced our partnership with Sezzle as a preferred partner to provide small and mid-market merchants the ability to offer interest-free buy-now, pay-later plans. This is a viable alternative to traditional credit card payments, particularly among a growing demographic of younger shoppers with limited credit history. As we cultivate our partner ecosystem, we continue to invest in our core platform capabilities. BigCommerce began as a SaaS e-commerce platform for small businesses. but our disruptive innovation strategy expands our capabilities to serve even the world's largest and most complex businesses. We do so at far lower costs than the legacy e-commerce platforms. I'm excited to announce that in Q3, we released multi-storefront to select merchants and partners, and we expect this much-anticipated product enhancement to be fully available to merchants in early 2022. With this release, customers can now use a single BigCommerce account to build and launch multiple unique storefronts. These storefronts can be either powered by BigCommerce's native stencil design and theme framework, or merchants can use a third-party headless solution such as Next.js, Contentful, ContentStack, and WordPress, to name a few. Merchants managing brand portfolios have already used this functionality to launch unique storefronts for each brand, such as Vanity Group, an Australian company that supplies hotel bathroom amenities. Multi-storefront also enables merchants that sell into multiple countries to use unique storefronts for each country. Merchants that sell into multiple segments like B2B and B2C are also using this to build unique storefronts for each customer segment. This marks a significant milestone in our platform's ability to serve the most complex use cases of small and large enterprises alike. We will continue to focus our R&D investments in our core platform in the future. building on this success with additional multi-store and enterprise functionality. Multi-store has been a major focus of our product development efforts in recent quarters, and I'm thrilled to bring this powerful capability to all merchants on our platform soon. At the beginning of Q3, we launched full localization of merchant and shopper experiences in support of our formal market entry into Italy, France, and the Netherlands. This includes localized trial flow, control panel, storefront, transactional emails that are sent to shoppers, and payment solutions. This rollout is a meaningful step for merchants in those countries and others looking to expand their European presence in a seamless fashion. Merchants appreciate the ease and speed with which their market expansion stores can come online. What used to take upwards of a year can now be built in as little as a few days or weeks. We continue to see strong growth in the number and size of international merchants on our platform. In October, we entered into an enterprise partnership with CMA CGM Groups, Nuoxatis, a leading publisher of e-commerce solutions based in France and a world leader in logistics with over 20 years of experience. This will enable thousands of new Oxatus merchants to build world-class digital storefronts powered by BigCommerce. This partnership will equip merchants with online stores that are fully integrated with information systems, ERP, and product information management software, along with CRM and marketing tools. Our partnership with Nuwax Addis demonstrates the momentum behind our geographic expansion as it comes quickly after launching in France at the beginning of Q3. Now is the time to increase our investment in geographic expansion, and Robert will speak to this in more detail later in his remarks. We had a number of notable brands launch on BigCommerce in Q3, including Gorewear, the producer of innovative functional cycling and running performance apparel, UK-based luxury shoe brand Grenson, Royal Swinkels Family Brewers, a Dutch independent family brewer of beer since 1680, Blackberry Farm, a top-rated hotel and resort situated on 4,200 acres in the Great Smoky Mountains of Tennessee, iPromise, a scientifically supported iVitamin company, and Australian merchant Adelaide Tools, who has specialized in the sales and service of name brand power tools since 1949. In addition, we had thousands of merchants join us for our annual Make It Big conference in September. which highlighted opportunities for merchants to grow their businesses through the power of the BigCommerce platform and partner ecosystem, highlighted by Mark Cuban as keynote speaker. Excitement around the BigCommerce brand is increasing, and we see that reflected in growing recognition from analysts such as Gartner in their 2021 Magic Quadrant for digital commerce platforms. BigCommerce also earned recognition from Paradigm as a top-rated SaaS platform for B2B e-commerce, by scoring 16 total medals, including a gold rating for total cost of ownership for the second year in a row. Finally, I would like to discuss our recent capital raise and thoughts around M&A. Robert will provide more color on the convertible bond offering later, but I would like to thank the investors and various parties that assisted us with the transaction. We saw a strong opportunity to raise additional capital at favorable terms, and we experienced robust demand from the investment community. This additional capital gives us plenty of operating runway for our expansion plans. It also provides capital for smart M&A that enhances our business. We see two main areas of focus within our M&A strategy. First, targets that would significantly accelerate our key strategic priorities. And second, targets that would enhance our core open SaaS offering in terms of enterprise functionality and open architecture. As an example, our acquisition of Fedonomics accomplishes both. It catapults us to a leadership position in omni-channel commerce enablement, which is one of our top strategic priorities, and it makes our platform the most open, optimally connected platform to 100-plus leading global advertising and marketplace channels. We will continue to explore M&A opportunities as part of our growth strategy and pursue candidates that we believe could deliver acceleration against strategic and or open SaaS platform priorities while staying true to our open approach to our partner community. We are in the midst of a multi-year strategy to disrupt the e-commerce platform industry and shape the next era of e-commerce. There was much to be proud of in Q3, and I'd like to thank all of our employees and partners for their contributions. We are pleased with our progress, but this is just the beginning. Our goal is to build the best e-commerce platform in the world, thereby enabling businesses to thrive at all stages of their e-commerce growth. We consider Q3 to have been an excellent quarter of progress toward the big goals we have in the years ahead. And with that, I'll pass it on to RA.