Commerce.com, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Commerce Second Quarter 2025 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, Tyler Duncan, Vice President, Finance and Investor Relations. You may begin.

Good morning, and welcome to Commerce's, formerly BigCommerce's, second quarter 2025 earnings call. We will be discussing the results announced in our press release issued before today's market open. With me are Commerce's Chief Executive Officer, Travis Hess, and Chief Financial Officer, Daniel Wentz. Today's call will contain certain 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 as well as our expected future business and financial performance, financial condition, and our guidance for both the third quarter of 2025 and the full year 2025. These statements can be identified by words such as expect, anticipate, intend, plan, believe, seek, committed, 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 Travis.

Thanks, Tyler, and good morning, everyone. I'll open my remarks today by providing a quick update on our second quarter results. And then I'll transition into some details behind the company branding and name change we announced this morning. Given the announced changes, we're going to have a number of partners and industry analysts on our call today as well. So there'll be some unavoidable technical jargon we will cover related to changes in our industry. First, let's start with a quick overview on the quarter. Q2 represented solid progress for the business in a number of areas. We delivered non-GAAP operating income of nearly $4.8 million. a 335 basis point margin improvement year over year. Annual revenue run rate, or ARR, reached nearly $355 million, a year over year improvement of 3%. Revenue reached $84.4 million in the quarter, growing 3% year over year, and operating cash flow came in at approximately $13.6 million, an improvement of nearly $2 million year over year. Both revenue and non-GAAP operating income exceeded the high side of our guidance range. While these results are encouraging in a number of areas, the business is capable of much more. I will spend the majority of my remarks today discussing where we're taking the business and why the changes we announce today will help us get there. E-commerce, as we know it today, is about to undergo a radical change. The advent and rise of answer engines and generative AI is driving an unprecedented evolution in consumer behavior, shifting search and browse to conversational queries that surface contextual shopping intent Answer engines like Perplexity, ChatGBT, Gemini, and Copilot are profoundly reshaping how we search, get things done, and how we shop. This significant shift is redefining how consumers discover and engage with businesses of all kinds, but most especially the brands, retailers, and B2B companies out there competing for traffic, customers, and conversions every day. Merchants of all sizes and across all industries must rethink how they show up in the era of of AI-driven agentic commerce. To remain competitive in this new paradigm, merchants must leverage partners who can help them harness their data for enhanced visibility, relevance, and performance across AI-driven channels. We are uniquely suited to serve the market through this transformation. Q2 was a defining period. The strategy, product, and go-to-market engine we have built over the past year came together behind a singular focus, powering an AI-driven commerce ecosystem at scale. Our transformation phase is over. We've moved fully into execution and growth, and we are proud to reintroduce our company as commerce. This rebranded commerce marks the culmination of a year spent rebuilding the company for where the commerce industry is going for the agentic future. Digital commerce is no longer organized around a single search box or a closed ecosystem. Shopping will be orchestrated by answer engines and other evolving AI-driven experiences that favor an open, composable approach to support these new buyer behaviors. In this new world, it is structured data such as title, description, size, and color, and unstructured data such as size guides, brand guidelines, spec sheets, video content, reviews, customer service transcripts, and articles synthesized, optimized, and orchestrated across owned and third-party channels that will help businesses adapt and succeed in this dynamic landscape. We have spent the last year deliberately rebuilding the company around this future. Our new brand also reflects our broader market position, a flexible, open, partner-led ecosystem with infrastructure that powers everything from full-stack commerce to data optimization and syndication, working alongside platforms with whom we sometimes compete to enable those customers to meet challenges we are uniquely positioned to solve. Our ability to operate across the stack and ecosystem sometimes is the platform other times agnostically as the data orchestration or experience layer is what makes our position in markets so unique and valuable. We help shape how commerce happens, wherever it takes place, and most importantly, however it best serves merchants and shoppers. I want to be clear about the intention behind this change. Commerce is more than a parent company rebrand. It's a deliberate signal that we intend to shape the future of commerce. It reflects our current identity and anticipates the market's direction, driven by a wave of AI-powered agentic transformation. We recently announced a series of high-impact partnerships that reflect our market-leading position in this area, which will help B2B and B2C businesses thrive in the era of AI-powered shopping or agentic commerce. We've launched our partnership with Perplexity, a leading AI answer engine to deliver optimized product data directly impacting its AI-driven contextual responses. This in turn improves discoverability and visibility for major brands because their data is providing the foundation for trusted answers. Our expanded relationship with Google Cloud is helping merchants stand out across sales channels with AI-enriched product data. This delivers richer and more seamless experiences for customers and greater discoverability for merchants. This includes innovations leveraging Google Cloud with Gemini within Commerce's data enrichment offerings. Today, we also announced a new partnership with PROSE, a market leader in AI-driven pricing optimization and configure price quoting. We will enable merchants to dynamically optimize pricing, automate complex quotes, and deliver real-time pricing offers to customers. This partnership will enable us to support more complex use cases, particularly in B2B, and expand our addressable market. Many of the world's top brands have selected commerce to deliver these capabilities today. Adventure brand Revelist, the parent company of Bell, Bushnell, Carnobac, and Giro, global consumer brand Urban, the parent company of Urban Outfitters, Anthropologie, and many others, and Tapestry, the parent company of fashion brands such as Coach and Kate Spade New York, and Dell Technologies are already leveraging commerce's data integrations to improve visibility, protect brand consistency and boost performance across AI driven search experiences. These are all exciting customer wins, partnerships and product developments. Operationally, we remain focused on the execution of our go to market transformation plan. We see clear traction from the changes we began in late 2024. Our pipeline conversion rates are improving as our sales teams are now selling bundled products aligned to specific use cases and verticals across the product portfolio. This is a go-to-market engine that looks very different from a year ago and it is now structurally aligned to the market for which we have been building. We need to improve the efficiency of our sales and marketing spending and the changes we have made are focused on that outcome. Let me finish with a few other quick highlights from Q2. We were proud to be awarded 24 out of 24 medals in the 2025 Paradigm B2B Combine for the third year in a row and we also advanced our rankings in five key categories and earn more gold medals in the mid market edition than any other platform. This quarter, we welcome top B2B brands such as Global Experience Specialists, Spear Education, and Arrow Fastener. In B2C, we saw great wins with LifeWave and Bellamy. I'm encouraged by the progress that I see and I'm confident we can build on our momentum. Q2 was a pivotal quarter for us, not just in terms of execution, but in how we define and present who we are to the world. Commerce is the culmination of the work we have done to transform our products, go-to-market, leadership, and architecture. It reflects our belief that the future of commerce is intelligent, composable, and AI-driven, and we are now uniquely positioned to lead that future. After a year of bold foundational change, we are now in execution mode. With that, I'll turn it over to Daniel to walk through our financials and outlook. Daniel?